Dominion Energy has sold a 50% noncontrolling interest in the Coastal Virginia Offshore Wind (CVOW) commercial project to Stonepeak.
Dominion will retain full operational control of the construction and operations of the project, and Stonepeak will have customary minority rights.
With this transaction, Dominion Energy says it has completed its business review debt reduction initiatives. During the review, the company announced transactions representing $21 billion of debt reduction. With the closings of the Cove Point LNG, East Ohio Gas, Questar Gas and Wexpro, and Public Service Company of North Carolina sales; and completion of the fuel securitization at Dominion Energy Virginia and the offshore wind partnership, Dominion Energy has achieved its business review target.
The 2.6 GW CVOW is scheduled for construction completion in 2026. It will consist of 176 turbines and three offshore substations in a 113,000-acre lease area off the coast of Virginia Beach.
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.
“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,” says 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.”