Dominion Closes USD 160 Million Acquisition for Kitty Hawk North from Avangrid

October 25, 2024, by Adnan Memija

Dominion Energy has completed the purchase of the Kitty Hawk North offshore wind lease area from Avangrid, Iberdrola’s US subsidiary, for approximately USD 160 million.

The agreement includes a lease acquisition payment of USD 117 million, approximately USD 3,000 per acre, along with a reimbursement for development costs to Avangrid.

“Closing this transaction is a tremendous development for our key business objectives and strategic priorities, positioning us to pursue new opportunities for investment across our renewables portfolio,” said Avangrid CEO Pedro Azagra.

Avangrid retains the ownership and associated rights to the Kitty Hawk South lease and will continue the development of the area, which has the potential to deliver up to 2.4 GW of power to North Carolina, Virginia, and other states or private companies.

Avangrid and Dominion Energy signed an agreement to acquire the Kitty Hawk North offshore wind lease area, which spans nearly 40,000 acres, in July this year.

The site, located some 40 kilometres north of the under-construction Coastal Virginia Offshore Wind (CVOW) project, would be renamed CVOW-South, according to Dominion Energy.

With the 800 MW added from the to-be-named CVOW-South, Dominion’s CVOW portfolio of projects will climb to 3.4 GW of generation capacity.

Recently, the company closed on a transaction to sell a 50 per cent interest in the CVOW project to Stonepeak.