Dominion Energy and Stonepeak Finalise CVOW Offshore Wind Deal

October 23, 2024, by Adnan Memija

Dominion Energy has closed on a transaction to sell a 50 per cent noncontrolling interest in the 2.6 GW Coastal Virginia Offshore Wind (CVOW) project to Stonepeak.

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

At closing, Dominion Energy received proceeds of USD 2.6 billion, representing reimbursement of approximately 50 per cent of project-to-date capital investment, said the companies.

Stonepeak plans to fund 50 per cent of the remaining project costs as they are incurred, subject to certain conditions as previously disclosed.

“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. 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”, said Rob Kupchak, senior managing director at Stonepeak.

The CVOW project will feature 176 Siemens Gamesa 14 MW wind turbines and three offshore substations in a nearly 113,000-acre lease area off the coast of Virginia Beach.

According to the companies, the 2.6 GW CVOW, the largest offshore wind farm currently under construction in the US, is on schedule to generate enough renewable energy to power up to 660,000 homes once fully constructed in late 2026.

“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.