E.ON, DONG Buy Out Shell's Stake in Wind Farm

E.ON (EONG.DE), one of the UK’s leading renewable generators, and Danish utility DONG Energy have agreed to buy out Royal Dutch Shell’s (RDSa.L) stake in the London Array offshore wind farm for an undisclosed sum.

Shell has committed to leave its staff in the project until the end of the year to enable a smooth transition and handover.

The two companies will now become 50:50 partners in the project, which, when built, could generate enough power to supply a quarter of Greater London homes.

In May Shell announced that it wanted out of the project, saying that rising costs made it unclear whether the planned 341 turbine wind farm in the Thames Estuary would be profitable.

E.ON said at the time that the project would likely be delayed, if not abandoned.

Dr Paul Golby, Chief Executive of E.ON UK, said today the partners hope to be able to keep the project on track and should be able to complete the first phase by the end of 2012.

DONG released a more cautious statement saying, "No investment decision has been made by DONG Energy regarding the project."