Masdar recently acquired a 49% stake in the Dogger Bank South (DBS) offshore wind project in the UK from RWE. The acquisition is in line with the company’s recently announced ambition to expand its portfolio into Europe through “transformative acquisitions”, according to its chief operating officer Abdulaziz Alobaidli.
The project is currently in early stages of development and secured lease for the area from the Crown Estate earlier this year. The project is expected to participate in the upcoming auctions, which will come with a 66% rise in strike price offered, compared to previous years, at £73/MWh. Additionally, the awarded contracts will be inflation indexed, mitigating further investment risks in the UK's offshore wind sector.
Enerdatics has analysed the recent M&A activity for offshore wind assets in the UK and identified an analogous precedent transaction as a benchmark for valuation: Gulf Energy Development’s purchase of a 24.9% stake in Outer Dowsing in Mar’23, valued at $0.29mn/MW. Similar to DBS, Outer Dowsing is also in the early stages of development and will bid in the upcoming CfD allocation round, with expected COD within the same timeframe (early 2030s). Using this deal multiple as benchmark, Enerdatics estimates Masdar’s acquisition of stake in DBS to be valued between $400-450mn.
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The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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