KKR Shares Rise – What’s With $15B UK Offshore Wind Project?

• Under the agreement, KKR will acquire a 50% equity stake in each project.
• A report from Reuters News said that KKR paid around $1.8 billion for the stake
• KKR said the two wind farms will require more than $15 billion in total development and capital spending.

Shares of KKR were in the spotlight on Wednesday after the UK government announced the results of the auction for the Contracts for Difference (CfD) Allocation Round 7 (AR7), the primary way by which the UK government secures its own sources of clean electricity like offshore wind. 

RWE, one of the world’s leading renewable energy companies, and KKR have agreed on a long-term partnership to jointly realize the Norfolk Vanguard East and Norfolk Vanguard West projects.

Under the agreement, KKR will acquire a 50% equity stake in each project, with both partners jointly developing, constructing and operating the wind farms. Financial details were not disclosed in the statement. 

The new windfarms will be located approximately 50km to 80km off the UK’s East Anglia coast in the North Sea and will comprise 184 turbines, offshore substations, and a connection to the National Grid.

“This investment underscores our conviction in the long-term importance of UK renewables, and the central role offshore wind will play in advancing the country’s energy transition,” said Vincent Policard, Co-Head of European Infrastructure at KKR. 

$15 Billion Wind Project

A report from Reuters News said that KKR paid around $1.8 billion for the stake. KKR, in a separate statement, said the two wind farms will require more than $15 billion in total development and capital spending to make them operational by 2029 and 2030, respectively.

The offshore wind projects are expected to be able to power over 3 million UK homes with clean energy.

KKR’s Infrastructure Platform

Since 2011, KKR’s Infrastructure platform has committed more than $31 billion into energy transition and renewables infrastructure globally. KKR’s portfolio also includes over 10 renewable energy developers.

In 2024, KKR invested in Encavis, a German renewable energy platform that owns and operates a diversified portfolio of onshore wind farms across multiple European countries.

How Did Stocktwits Users React?

Retail sentiment around KKR trended in ‘bearish’ territory amid ‘high’ message volume. 

KKR shares have fallen nearly 8% over the past year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

 

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