Avangrid, the U.S. unit of Spain's Iberdrola, has agreed to sell its Kitty Hawk North offshore wind lease area to utility firm Dominion Energy for about $160 million, the companies said on Monday.
Located in offshore North Carolina, Kitty Hawk Wind North will be renamed Coastal Virginia Offshore Wind (CVOW)-South and would have a capacity of 800 megawatts (MW), enough to serve 200,000 homes and businesses, Dominion said in a statement.
Dominion is currently constructing the 2.6 gigawatts (GW) CVOW commercial project, which is located about 25 miles north of the CVOW-South lease.
The two utilities expect the deal to close in the fourth quarter of 2024.
Avangrid said it will retain the ownership and associated rights to the Kitty Hawk South lease, and continue to develop the area.
(Reuters - Reporting by Vallari Srivastava; Editing by Shailesh Kuber)