Investment firm Stonepeak has bought a 50% interest in Dominion Energy’s 2.6 GW Coastal Virginia Offshore Wind (CVOW) project for $3bn.
The deal for the project stake was made with a subsidiary of Stonepeak Partners, an infrastructure investment firm managing over $61bn in assets. The transaction is scheduled to be completed by the end of the year and the $3bn figure represents half the cost of CVOW’s construction expenses up to now, after deducting an initial reserve of $145m.
Following closing, Dominion Energy and Stonepeak will provide half of the remaining capital needed for the construction of CVOW, under the condition that the total project cost, excluding financing costs, is under $11.3bn.
Virginia Power, a Dominion Energy subsidiary, will maintain operational control over the construction and management of the project.
CVOW is set to be the largest offshore wind farm in the US and among the largest global when completed. It will be located some 44 km off the coast of Virginia Beach, Virginia, capable of serving the power needs of 660,000 homes. The project will consist of 176 turbines and three offshore substations in a nearly 460 sq km lease area.
Dominion Energy began developing CVOW in 2013 and is scheduled to begin offshore construction this spring. Construction is expected to be completed by year-end 2026. When fully constructed, each year CVOW will avoid carbon emissions equivalent to removing 1m cars from the road.