$2.6BN deal sees Stonepeak take 50% stake in CVOW

Photo: CVOW

Dominion Energy Inc. (NYSE: D), reports that it has closed on a transaction to sell a 50% non-controlling interest in the Coastal Virginia Offshore Wind (CVOW) project to New York City headquartered alternate investment firm Stonepeak.

At closing, Dominion Energy received proceeds of $2.6 billion, representing reimbursement of approximately 50% of project-to-date capital investment. Stonepeak will fund 50% of remaining project costs as they are incurred, subject to certain conditions.

Dominion Energy says that it will retain full operational control of the construction and operations of the project, and Stonepeak will have customary minority rights.

Stonepeak will probably be best known to Marine Log readers as the firm that, in 2021, acquired Teekay LNG, which then rebranded as Seapeak.

“We are pleased to partner with Stonepeak on CVOW, which continues to proceed on-time and on-budget, consistent with our previously communicated timing and cost expectations,” said Robert M. Blue, Dominion Energy chair, president and chief executive officer. “Stonepeak is one of the world’s largest infrastructure investors in large energy projects such as offshore wind, and its financial participation in CVOW will benefit both the project and the people who will rely on electricity from CVOW to keep the lights on and fuel economic growth in the Commonwealth.”

“We are excited to have closed this investment in CVOW, which exemplifies many of the core tenets of essential infrastructure that we invest behind at Stonepeak,” said Rob Kupchak, senior managing director at Stonepeak. “We look forward to continuing our partnership with Dominion Energy’s talented team to bring what promises to be one of the most impactful energy projects in the United States to commercial operation.”

The 2.6-gigawatt CVOW, the largest offshore wind farm currently under construction in the United States, is on schedule to generate enough clean, renewable energy to power up to 660,000 homes once fully constructed in late 2026. CVOW will consist of 176 turbines and three offshore substations in a nearly 113,000-acre lease area off the coast of Virginia Beach.