Dominion Energy Gets $2.6B from Sale of Virginia Offshore Wind Stake

Dominion Energy Inc. has closed the sale of a 50 percent non-controlling interest in the Coastal Virginia Offshore Wind (CWOW) project to Stonepeak. Dominion Energy said in a media release that it will retain full operational control of the project’s construction and operations. Stonepeak will have customary minority rights.

The CWOW transaction is in line with Dominion Energy’s debt reduction initiatives. The company has agreed $21 billion worth of transactions, achieving 100 percent of the business review targets. The review included the sale of Cove Point LNG, East Ohio Gas, Questar Gas and Wexpro, and Public Service Company of North Carolina, as well as the completion of the fuel securitization at Dominion Energy Virginia and the offshore wind partnership.

The CWOW transaction raked in $2.6 billion for Dominion, which represents a reimbursement of approximately 50 percent of project-to-date capital investment. Stonepeak will cover 50 percent of the outstanding project expenses as they arise.

"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”, Robert M. Blue, Dominion Energy chair, president, and chief executive officer, said. “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”.

The 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW) project, the largest offshore wind farm being built in the United States, is on track to provide sufficient renewable energy to supply up to 660,000 homes when it is completed in late 2026. The CVOW will feature 176 turbines and three offshore substations within a lease area of nearly 113,000 acres off the Virginia Beach coastline, according to Dominion Energy.

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