Landmark Offshore Wind Partnership

March 12, 2024

McGuireWoods advised longtime client Dominion Energy in an agreement to sell a 50% noncontrolling interest in the Coastal Virginia Offshore Wind (CVOW) commercial project to Stonepeak, a leading global infrastructure investor, through the formation of an offshore wind partnership. The transaction is expected to close by the end of 2024, subject to regulatory approvals.

Under the terms of the agreement, Dominion Energy will retain operational control of the construction and operations of the CVOW project, the largest offshore wind farm in the United States and the first installed in federal waters. The 2.6-gigawatt CVOW project is on schedule to generate enough clean, renewable energy to power up to 660,000 homes once fully constructed in late 2026. The CVOW project will consist of 176 turbines and three offshore substations in a nearly 113,000-acre lease area off the coast of Virginia Beach.

At closing, Dominion Energy expects to receive proceeds of approximately $3 billion, representing 50% of the project’s construction cost through the closing period. Following closing, Dominion Energy and Stonepeak will each contribute 50% of the remaining capital necessary to fund projected construction costs, with protections from any unforeseen increases in the current project construction budget.

McGuireWoods has advised Dominion Energy in all aspects of the landmark CVOW project, from obtaining legislative and regulatory approvals to executing construction and equipment contracts with global suppliers.

“We were pleased to assist Dominion Energy in this important transaction, which represents another milestone in the development of the historic Coastal Virginia Offshore Wind commercial project,” said McGuireWoods partner Joanne Katsantonis, who led the firm’s team representing Dominion Energy in the deal with Stonepeak.

The deal team included McGuireWoods partners Michael Woodard and Samuel Kettering and associates Emily Blair and Johnny Mac Yates. In addition, Jay HughesJake SpilmanDaniel HowellJeff GoldfarbAkash SethiJon Neal and Arrion Dennis assisted in the transaction.

McGuireWoods’ multidisciplinary energy team includes more than 200 lawyers who work across all sectors of the industry. The firm consistently ranks among the leading law firms for U.S. M&A deals and its energy and transactional capabilities earned nationwide recognition from Chambers USA and The Legal 500.