SeaEnergy PLC, the Aberdeen-based AIM-quoted company, has found a buyer for its offshore wind business, a year after putting it up for sale.
Spanish energy company Repsol has agreed to pay £50 million for SeaEnergy Renewables Limited (SERL), which has an interest in the Moray Firth, Inch Cape and the Beatrice offshore wind farm sites off the coast of Scotland. If approved by shareholders, the sale will see SeaEnergy recover its £8 million investment in SERL as well as a £30.7 million cash consideration. The deal will bring to a close a protracted sales process and difficulties in raising equity finance to develop two wind projects in which SERL has an interest.
Despite the delay, Steve Remp, executive chairman of SeaEnergy said "the time was right" for the company to capitalise on its investment.
"This deal shows how SeaEnergy uses early mover advantage to create value from new opportunities," he said. "We created a business out of nothing but a concept, and three years later it has been valued at £50 million."
SERL, which has been loss making since it was founded, owns a 25 per cent stake in 920 megawatt (MW) Beatrice wind farm, the 905 MW Inch Cape and the 1.3 MW Moray Firth. The latter is majority owned by EDP Renováveis. If the sale is approved, Repsol will form a consortium with EDP to develop the Moray Firth and Inch Cape projects, a release by SeaEnergy said.
Despite the delay, the sale underlines the opportunities for investment being offered by Scotland’s renewable energy sectors. Scotland has around 25 per cent of Europe’s wind resource potential, equal to 59.1GW of power through renewable energy sources.
Following the sale, SeaEnergy said it would focus on existing oil and gas assets and fledgling business, SeaEnergy Marine, an offshore renewables marine services start-up that has developed an offshore vessel.
"We believe that our nascent marine business has a unique vessel concept that will make a material difference to the commercial economics of offshore wind. We look forward to pursuing this exciting opportunity, and to seeking out other projects to leverage our expertise," said Remp.