Avangrid, a US energy unit of Spain's Iberdrola Group, has announced an agreement for the sale of the Kitty Hawk North offshore wind lease area to Dominion Energy. The agreement, which includes the Kitty Hawk North offshore wind lease area and associated assets, is for a sale price of approximately $160 million, inclusive of a payment of about $3,000 per acre for the nearly 40,000-acre lease.
The sale price comprises a lease acquisition payment of $117 million and associated development cost reimbursement to Avangrid.
“As Avangrid continues the construction of our nation-leading Vineyard Wind 1 project and the development of our diverse portfolio of offshore and onshore renewable projects, this transaction advances our strategic priorities by providing significant capital infusion for reinvestment,” said Avangrid CEO Pedro Azagra. “Executing this agreement allows us to move forward with our long-term plans for the development of Kitty Hawk South, further demonstrating our commitment to accelerating the clean energy transition in the United States.”
Avangrid will retain the ownership and associated rights to the Kitty Hawk South lease, and will continue the development of the area, which the company said has the potential to deliver up to 2.4 gigawatts of power to North Carolina, Virginia, or other states or private companies.
Avangrid has an 8.8 gigawatt portfolio of more than 75 wind and solar facilities in 25 states. It is building the nation’s first large-scale offshore wind project, Vineyard Wind 1, currently under construction 15 miles south of Martha’s Vineyard.
On June 26, 2024, Avangrid announced that it had placed 10 turbines into production for the project, making Vineyard Wind 1 the largest operating offshore wind farm in the U.S. Avangrid is also developing the New England Wind lease area, which received a favourable record of decision from the Department of the Interior in April 2024, followed by the approval of its construction and operations plan in July 2024.
