Norfolk Race Bank wind farm sold to DONG Energy for £50m

Energy giant Centrica has pulled out of a wind farm project planned for a site 17 miles (27km) off the Norfolk coast.

The firm has sold its interest in the £2bn Race Bank project, designed to power 450,000 homes, after failed government discussions over subsidies.

Danish company DONG Energy Power (UK) has paid Centrica £50m to take over management of the project.

Benj Sykes, from DONG Energy, said Race Bank "fits existing plans to develop UK offshore wind projects".

The wind farm is to be sited off Blakeney Point on the North Norfolk coast and Centrica Energy said much of the preliminary work had been done.

Centrica said in November it was trying to negotiate over subsidies and was also hoping to attract more investment partners.

Samuel Leupold, executive vice president of DONG Energy Wind Power, said he was confident of turning it into a successful project.

The government believes about £110bn of capital investment will be needed by the electricity generating industry over the next decade.

A decision to build the Race Bank project is still pending and depends on developments under DONG Energy's ownership.