Vattenfall has signed an agreement with RWE to divest the Norfolk Offshore Wind Zone. The agreed purchase price corresponds to an enterprise value of £963 million.
The Norfolk Zone consists of three fully consented wind farms – Norfolk Boreas, Norfolk Vanguard West and Norfolk Vanguard East – and is located off the east coast of England. Vattenfall believes the agreement with RWE is the best way forward both for the company and for the Norfolk projects. With the divestment, Vattenfall increases its ability to invest in fossil-free projects that better fit its overall portfolio and risk appetite, while the future of the Norfolk Offshore Wind Zone is secured. This divestment means the impairment and provisions Vattenfall reported earlier this year will be reversed. The sale of Boreas, Vanguard East and Vanguard West is pending regulatory approvals, and the deal is expected to close in the first quarter of 2024. Until then, Vattenfall will continue to develop the Vanguard East and Vanguard West projects. A transitional service agreement for the period after the closing will ensure continuation of the build out.
