Dominion to Sell Wind Project Stake to Stonepeak for $3 Billion

Dominion Energy Inc. agreed to sell a 50% non-controlling stake in the offshore wind farm it’s building in the Atlantic Ocean to infrastructure-focused private equity fund Stonepeak for $3 billion.

The deal is expected to close by the end of the year, Dominion said Thursday in a statement.

The $9.8 billion Coastal Virginia Offshore Wind project will have 176 turbines and stand in water about 27 miles (43 kilometers) off Virginia Beach. Once fully built, it will generate enough electricity for as many as 660,000 homes.

Dominion had said the sale of the stake in the project was the final step in its strategic review, which the company announced in late 2022 after its shares dropped significantly that year. The review also led the company to sell off its remaining interest in Cove Point, a liquefied natural gas facility, as well as its gas utilities.

Read More: Dominion Wins Approval for Biggest-Yet US Offshore Wind Farm

Offshore wind has faced its own problems, with inflation, high interest rates and supply chain kinks holding up development. President Joe Biden had set a target of 30 gigawatts of offshore wind power generation capacity by 2030, but canceled and delayed projects have made reaching that goal unlikely.