Dominion Energy sells non-controlling stake in Coastal Virginia Offshore Wind project

Dominion Energy has closed on a transaction to sell a 50 per cent non-controlling interest in the Coastal Virginia Offshore Wind (CVOW) commercial project to New York City-based investment firm Stonepeak.

Dominion Energy will retain full operational control of the construction and operations of the project, and Stonepeak will have customary minority rights. The transaction was previously announced on February 22, 2024.

With this transaction, Dominion Energy has now successfully completed its business review debt reduction initiatives. During the review, the company announced transactions that represent approximately US$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 securitisation at Dominion Energy Virginia and the offshore wind partnership, Dominion Energy has now achieved 100 per cent of the business review target.

Dominion Energy said said these actions have improved the company’s balance sheet, reduced its risk profile, and established a renewed focus as a pure-play, state-regulated electric utility business.

The 2.6GW 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 (45,700-hectare) lease area off the coast of Virginia Beach.

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