Ørsted to sell stake in offshore wind farm to NBIM

7 April 2021 (Last Updated April 7th, 2021 16:36)

Denmark-based power company Ørsted has signed an agreement to divest a 50% ownership stake in its Borssele One and Two offshore wind farm to Norges Bank Investment Management (NBIM).

Ørsted to sell stake in offshore wind farm to NBIM
The offshore wind facility was commissioned in the fourth quarter of last year. Credit: Ørsted A/S.

Denmark-based power company Ørsted has signed an agreement to divest a 50% ownership stake in its Borssele One and Two offshore wind farm to Norges Bank Investment Management (NBIM).

Located 23km off the coast of Zeeland, Netherlands, the 752MW offshore wind facility was commissioned in the fourth quarter of last year.

The project, which features 94 Siemens Gamesa 8MW wind turbines, is said to be the largest operational facility in the Netherlands and the second-largest operational offshore wind farm in the world.

The farm is expected to generate enough clean energy to power one million households in the Netherlands a year.

Ørsted chief commercial officer and Deputy Group CEO Martin Neubert said: “As one of the world’s largest institutional investors, NBIM is making a difference by making sustainable investments.

“We’re delighted to welcome NBIM as a partner on Borssele One and Two, a landmark project for the Netherlands’ transition to renewable energy, and we’re pleased to support NBIM in their strategy to invest in renewable energy infrastructure assets.”

The €1.357bn ($1.612bn) consideration will be paid to Ørsted upon completion of the transaction, which is expected to take place this year subject to regulatory approval.

It is the first investment made by NBIM in unlisted renewable energy infrastructure.

NBIM chief real assets officer Mie Holstad said: “We are very pleased to partner on Borssele One and Two with Ørsted, the market leader in offshore wind.

“We are excited to have made our first unlisted investment in renewable energy infrastructure, and we look forward to working alongside Ørsted on delivering green energy to Dutch households.”

Ørsted will provide long-term operations and maintenance services for the project from its base at the port of Vlissingen.

It will also offer balancing services and a long-term route to NBIM to market for the renewable electricity generated by Borssele One and Two.

In December, Ørsted signed an agreement to divest a 50% stake in its 605MW Greater Changhua One offshore wind farm in Taiwan to Canada-based investment firm Caisse de dépôt et placement du Québec (CDPQ) and Taiwanese private equity fund Cathay PE.