SeaEnergy agrees sale of wind energy division to Repsol

SeaEnergy (LON:SEA) , the group behind plans to cash in on wind farm developments off the coast of the UK, has agreed a deal to sell its SeaEnergy Renewables Ltd (SERL) division to Spanish energy group Repsol for an enterprise value of £50 million. The £38.8m deal includes a 25% share in three Scottish projects: the around 3000MW Round 3 Moray Firth wind farm, the 920MW Beatrice and the 905MW Inch Cape. Repsol has formed a joint venture with EDP Renovaveis for Moray and Inch Cape.

Shares in the AIM listed company responded by plunging 28.25p to 41.25p during the first hour of trading as investors weighed up whether boss Steve Remp had achieved a decent price for the business. SeaEnergy was set up three years ago and went on to win three UK wind power licences with partner group EDP Renováveis to build wind farms.

However, the renewables business has always been loss making and struggled to raise sufficient cash to drive the projects forward. Today’s sale agreement, after paying off debts, will leave the company with £29.1 million together with ongoing interests in offshore renewables services and the oil and gas sector.

SeaEnergy said the deal included a strategic co-operation agreement between EDP Renováveis and its SeaEnergy Marine business in connection with the possibly supply of operations and maintenance vessels, field infrastructure and equipment installation vessels for offshore wind farm plants.

SeaEnergy has also retained the right to negotiate a new strategic co-operation agreement with Nantong COSCO Ship Steel Structure Co. Ltd to explore construction and marketing opportunities for steel structure jackets for use with deepwater offshore wind turbines.

Steve Remp, the executive chairman of SeaEnergy, said: “This deal shows how SeaEnergy uses early mover advantage to create value from new opportunities. We created a business out of nothing but a concept, and three years later it has been valued at £50 million. The time is right for us to capitalise on this success. This deal allows us to continue to participate in the fast-growing UK and European offshore wind markets, and to build on our enviable track record of working with some of the world’s biggest companies. We believe that our nascent Marine business has a unique vessel concept that will make a material difference to the commercial economics of offshore wind. We look forward to pursuing this exciting opportunity, and to seeking out other projects to leverage our expertise.”