Jul 21

Orsted to Sell Half of Major Wind Farm to Norges Bank For €1.4 Bn

Stephen Bierman
Apr 7, 2021
offshore wind energy

Image: Vasilios Muselimis via Unsplash

Orsted has agreed to a deal to sell half of the Borssele 1 & 2 wind generation array to Norges Bank Investment Management (NBIM) for 1.375 billion euros, according to a statement from the Danish leader in offshore wind.

Borssele 1 & 2 is the largest operational offshore wind farm in the Netherlands and the second largest offshore wind farm in the world, located 23 km off the coast of Holland’s Zeeland region. The array is comprised of 94 8-MW offshore wind turbines from Siemens Gamesa.

The 752-megawatt (MW) project was commissioned late last year and generates enough power for the Netherlands equivalent to that annually consumed by 1 million households. Orsted will continue to provide long-term operations and maintenance from its base in Vlissingen, Holland.

NBIM is the asset management division of the Norwegian central bank. The agreement marks the first investment from NBIM, one of the world’s largest institutional investors, into unlisted renewable energy infrastructure.

The divestment agreement is subject to regulatory approval and expected to close this summer.

The sale shows that early movers in wind generation are willing to cash out as projects mature and global demand for greener portfolios among investors is strong.

For Orsted, the move frees up cash for further investment, as wind generation projects gain wide ranging political support across the globe. Earlier this year, Orsted signed on to a multi-company project to produce renewable hydrogen from offshore wind farms at costs that are competitive with natural gas.

Stephen Bierman

Stephen Bierman is a finance and energy reporter with over 15 years of experience, including at Bloomberg News and Energy Intelligence.

Tweets at: @StephenBierman1

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