Avangrid Announces Close of Sale for Kitty Hawk North Offshore Lease Area to Dominion Energy

Press Releases

10/24/2024

Avangrid Announces Close of Sale for Kitty Hawk North Offshore Lease Area to Dominion Energy

Avangrid Announces Close of Sale for Kitty Hawk North Offshore Lease Area to Dominion Energy

40,000 acre lease area could support 800 MW of offshore wind generation energy; Transaction value of approximately $160 million

Boston, MA - Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, today announced that it has closed the sale of the Kitty Hawk North offshore wind lease area to Dominion Energy. The agreement, which includes the Kitty Hawk North offshore wind lease area and associated assets, is for a sale of approximately $160 million, inclusive of a payment of about $3,000 per acre for the nearly 40,000-acre lease. The sale price consists of a lease acquisition payment of $117 million and associated development cost reimbursement to Avangrid.

"Closing this transaction is a tremendous development for our key business objectives and strategic priorities, positioning us to pursue new opportunities for investment across our renewables portfolio," said Avangrid CEO Pedro Azagra. "As we close this sale, focus on delivering on our capital investment plan, and continue the development of Kitty Hawk South, Avangrid is proud of its work to accelerate the clean energy transition in the United States."

Avangrid retains the ownership and associated rights to the Kitty Hawk South lease, and will continue the development of the area, which has the potential to deliver up to 2.4 Gigawatts of power to North Carolina, Virginia, or other states or private companies.

As one of the largest renewable energy developers in the nation, Avangrid has a 9 Gigawatt portfolio of more than 75 wind and solar facilities in 25 states, generating enough energy to power over 2.8 million homes across the country. In September 2024, Avangrid's 791 Megawatts (MW) New England Wind 1 project was selected by the Commonwealth of Massachusetts in the multi-state regional offshore wind solicitation. New England Wind 1 is an offshore wind development located in federal lease area OCS-A-0534, roughly 30 miles south of Barnstable, Massachusetts and making landfall under the Craigville Beach parking lot in Barnstable. The project will border VW1, Avangrid's first large-scale offshore wind project currently under construction 15 miles south of Martha's Vineyard.