Norwegian oil fund, Norges Bank Investment Management (NBIM), has signed an agreement to acquire a 50 per cent interest in Ørsted’s 752 megawatt Borssele 1 & 2 offshore wind farm located in the Netherlands.
The agreement was signed on 7 April 2021, with completion expected in the second or third quarter of 2021.
NBIM will pay 1,375 million euros for its 50 per cent interest in the offshore wind farm. No external debt financing will be involved in the transaction.
Ørsted will remain co-owner and operator of the project, which is expected to produce green energy equivalent to the annual electricity consumption of around one million Dutch households.
Chief Commercial Officer and Deputy Group CEO of Ørsted, Martin Neubert, said that 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 1 & 2, which is 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,” he said.
Chief Real Assets Officer at Norges Bank Investment Management, Mie Holstad, added that they are excited to have made their first investment in unlisted renewable energy infrastructure and pleased to partner with Ørsted as the market leader in offshore wind.
“Borssele 1 & 2 is a high-quality offshore wind asset, and the acquisition is in line with our strategy to build a high-quality portfolio of wind and solar power generation assets. The unlisted renewable energy infrastructure strategy supplements our existing unlisted real estate portfolio well, and we draw on our long experience with direct investments,” Holstad said.
The offshore wind farm was fully commissioned in the fourth quarter of 2020.
Facts about Borssele 1 & 2
- The largest operational offshore wind farm in the Netherlands – and the second-largest operational offshore wind farm in the world – with an installed capacity of 752 megawatts.
- Located 23 kilometres off the coast of the Dutch region of Zeeland at water depths ranging from 14 to 36 metres.
- The 94 Siemens Gamesa 8 megawatt offshore wind turbines of Borssele 1 & 2 generate enough power to annually cover one million households with green energy in the Netherlands.
- Fully commissioned in Q4 2020.