Dominion Energy, Inc. (NYSE: D) has announced the successful completion of a transaction in which it sold a 50% noncontrolling interest in the Coastal Virginia Offshore Wind (CVOW) commercial project to Stonepeak. Dominion will maintain full operational control over the project’s construction and operations, while Stonepeak will possess customary minority rights. This transaction was initially disclosed on February 22, 2024.
With this deal, Dominion Energy has successfully executed its debt reduction initiatives stemming from its business review. The company has announced transactions totaling approximately $21 billion in debt reduction. Following the sales of Cove Point LNG, East Ohio Gas, Questar Gas, Wexpro, and Public Service Company of North Carolina, along with the completion of fuel securitization at Dominion Energy Virginia and the offshore wind partnership, Dominion has met its business review targets. These strategic actions have strengthened the company’s balance sheet, minimized risk, and refocused its efforts as a pure-play, state-regulated electric utility.
Robert M. Blue, Dominion Energy’s chair, president, and CEO, stated, “We are pleased to partner with Stonepeak on CVOW, which is progressing on schedule and within budget, aligning with our previously communicated timing and cost expectations. Stonepeak is among the world’s largest infrastructure investors in significant energy projects like offshore wind, and its involvement in CVOW will benefit both the project and the communities relying on its electricity for economic growth in the Commonwealth.”
Rob Kupchak, senior managing director at Stonepeak, expressed excitement about the investment: “Closing this deal in CVOW aligns with our core investment principles in essential infrastructure. We look forward to collaborating with Dominion Energy’s skilled team to bring this impactful energy project to commercial operation.”
The 2.6-gigawatt CVOW is currently the largest offshore wind farm under construction in the United States, expected to generate enough clean, renewable energy to power up to 660,000 homes upon completion in late 2026. The project will feature 176 turbines and three offshore substations within a nearly 113,000-acre lease area off the coast of Virginia Beach.
At the close of the transaction, Dominion Energy received $2.6 billion, which reimburses approximately 50% of the project’s capital investment to date. Stonepeak will cover 50% of the remaining project costs as they arise, in accordance with previously disclosed conditions.
