Dominion Energy has completed the sale of 50% noncontrolling interest in 2.6 GW Coastal Virginia Offshore Wind (CVOW) commercial project to Stonepeak.
Dominion Energy will retain full operational control of the construction and operations of the project, and Stonepeak will have customary minority rights.
At closing, Dominion Energy received proceeds of $2.6 billion, representing reimbursement of approximately 50% of project-to-date capital investment. Stonepeak will fund 50% of remaining project costs as they are incurred, subject to certain conditions as previously disclosed.
The 2.6 GW CVOW, the largest offshore wind farm currently under construction in the United States, is on schedule to generate enough renewable energy to power up to 660,000 homes once fully constructed in late 2026.
CVOW will consist of 176 turbines and three offshore substations in a nearly 113,000-acre lease area off the coast of Virginia Beach.
"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.
“Stonepeak is one of the world's largest infrastructure investors in large energy projects such as offshore wind, and its financial participation in CVOW will benefit both the project and the people who will rely on electricity from CVOW to keep the lights on and fuel economic growth in the Commonwealth,” said Robert M. Blue, Dominion Energy chair, president and chief executive officer.
"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,” added Rob Kupchak, senior managing director at Stonepeak.