AMF to buy 49% stake in Vattenfall’s 150MW UK Ormonde wind project for £237m

20 December 2015 (Last Updated December 20th, 2015 18:30)

Swedish pension group AMF has signed a £237m deal with Vattenfall to acquire a 49% stake in 150MW Ormonde offshore wind farm in the UK.

Swedish pension group AMF has signed a £237m deal with Vattenfall to acquire a 49% stake in 150MW Ormonde offshore wind farm in the UK.

Vattenfall, which will continue to operate the facility as the majority shareholder, has signed the deal to raise funds for its renewable investments.

AMF Asset Management head Peder Hasslev said: "AMF manages the pension funds of four million customers, meaning the responsibility to create good and secure pensions through long-term investments.

"The Ormonde wind farm investment being sustainable with good returns fits us therefore very well. Conditions for offshore wind power in the UK are favourable, and in combinations with the partnership and deep knowledge in the wind area of Vattenfall we feel confident about doing this investment."

"Conditions for offshore wind power in the UK are favourable, and … we feel confident about doing this investment."

The deal is in line with the Sweden-based energy giant’s partnering strategy, which was announced in 2014 and is aimed at strengthening its green energy portfolio.

The firm intends to invest around Skr50bn ($5.84bn) for new wind power developments by 2020 and to triple its wind capacity to at least 6GW in the next decade.

Announcement for this transaction follows Norwegian Statkraft’s plans to stop investments for new offshore wind projects, including two UK projects, which are currently under development.

However, Statkraft’s decision has not affected Vattenfall’s plan to continue with offshore wind developments in the UK, reports Reuters.

Withdrawal of government subsidies in the country was cited as the reason for the company to stop construction of more onshore wind farms.

Vattenfall chief executive Magnus Hall was quoted by the news agency as saying: "It’s a concern for us, because the market prices are too low for us to build new onshore wind power.

"And onshore wind is the fastest way to increase renewable output in Britain."