StatoilHydro and Statkraft to develop major offshore wind farm.

(From Hugin)

StatoilHydro and Norwegian power utility Statkraft join forces to develop the 315 MW Sheringham Shoal Offshore Wind Farm off the coast of Norfolk in the UK.

The wind farm, which will consist of 88 turbines, is planned to start production in 2011. When fully operational, its annual electricity production is expected to be around 1.1TWh, enough energy to power around 220,000 UK homes. Total investments are estimated at approximately NOK 10 billion.

Until now, the 315 MW Sheringham Shoal project has been owned 100% by StatoilHydro. Through an agreement, Statkraft will acquire 50% of the shares in the project, thus becoming an equal partner with StatoilHydro.

Sheringham Shoal is ready for construction and will be developed according to schedule, with StatoilHydro as the operator during the construction phase. The Sheringham Shoal Offshore Wind Farm will be the most important wind farm project in both StatoilHydro's and Statkraft's wind energy portfolios. The partnership and the decision to develop the project are a significant milestone in both companies' ambitions in the field of offshore wind.

"We are pleased to announce our decision to go ahead with this significant project together with Statkraft. We believe our joint efforts will generate value for both companies, as well as our owners and society as a whole. Gradually developing a stronger position within renewable energy is part of StatoilHydro's long-term strategy.

Sheringham Shoal is a good commercial project that demonstrates our determination and capacity in this context," says StatoilHydro's chief executive, Helge Lund.