LONDON -(Dow Jones)- Centrica PLC (CNA.LN) and DONG Energy Wednesday announced they have formed a joint venture to co-develop offshore wind farms in the Round 3 Irish Sea Zone, which has a potential capacity of 4.2GW.
-The transaction will see DONG Energy pay Centrica up to GBP40 million in cash for a 50 per cent interest in the joint venture.
-DONG Energy will pay Centrica GBP15 million at closing of the transaction, with the balance payable in later years contingent upon consent being achieved for a project in the Irish Sea Zone and DONG Energy reaching a final investment decision for a project in the Zone.
-The two companies will work together to develop different projects in the zone on a 50/50 basis with construction management of the projects alternating between the parties.
-For the first project under Centrica's management, a final investment decision is expected in 2016.
-Centrica shares closed Wednesday at GBP3.1 valuing the company at GBP16.2 billion.
-By Jana Weigand, Dow Jones Newswires; 44-20-7842-9314; firstname.lastname@example.org
(END) Dow Jones Newswires
March 21, 2012 13:58 ET (17:58 GMT)
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