Global investment firm KKR and German energy group RWE have formed an equal partnership and secured lender backing to develop a £12bn (€10.8bn) offshore wind project in the UK.
KKR has completed its acquisition of a 50% equity stake in the 2.8GW Vanguard West and Vanguard East offshore wind developments in the British North Sea.
Equity from both partners sits alongside a debt package comprising £11.1bn in cash facilities and £1.7bn in ancillary facilities provided by a syndicate of 35 international banks, including a £1bn commitment from the UK’s National Wealth Fund.
Also supporting the debt package alongside the National Wealth Fund is the Export and Investment Fund of Denmark, which is providing £1.6bn in project finance guarantees for the two UK projects.
Andy Burnham, UK prime minister, said: “This major investment in UK renewables is a vote of confidence for building in Britain. And it is great news for billpayers because every turbine we put up is power under British control, not at the mercy of events on the other side of the world. With coastal communities from Scotland to East Anglia powering Britain’s future, the places that host this energy benefit from the jobs and opportunities that it brings.
“Our National Wealth Fund means that public investment is working alongside private capital to build homegrown energy and bring a return for the taxpayer. Because, for me, a clean energy future is one that brings down bills.”
Miatta Fahnbulleh, UK energy secretary, said: “This is another vote of confidence in British homegrown, clean energy. Investment in offshore wind and clean power is creating quality jobs and rebuilding industry, while delivering the clean power we need to lower bills and reach net zero.
“As the world gathers at COP31, Britain is leading from the front as a renewable energy powerhouse, turning the fight against climate change into a brighter future for British companies, industrial communities and future generations.”
Markus Krebber, CEO of RWE AG, said: “Our strategic partnership with KKR provides a strong foundation for the joint delivery of Vanguard West and Vanguard East, and is a vote of confidence in the UK as an attractive place to invest. Securing the largest-ever project financing in UK offshore wind also demonstrates our lenders’ trust in these projects and our ability to deliver them.
“With a combined capacity of 2.8GW, the projects will strengthen domestic electricity generation and make an important contribution to a resilient energy system, energy security and affordability. Preparatory works are well advanced; putting us in a strong position to begin offshore construction in early 2027.”
Vincent Policard, co-head of European infrastructure at KKR, said: “The UK has a significant opportunity to develop its critical infrastructure to support long-term economic growth and strengthen energy security, including through offshore wind.
“Delivering at this scale requires substantial private investment, and KKR brings long-term capital, global infrastructure expertise and the ability to support complex projects through construction and operation. Our work with RWE demonstrates how private capital can help turn the UK’s energy ambitions into reality, with these projects capable of powering around 3m UK homes.”
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