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Norway’s sovereign wealth fund has agreed to pay round 1.375 billion euros ($1.63 billion) for a 50% stake in one of many world’s largest offshore wind farms, Orsted’s 752 megawatt (MW) Borssele 1 & 2 facility.
Managed by Norges Financial institution Funding Administration, the fund — whose wealth stems from Norway’s huge North Sea oil and gasoline reserves — is the world’s largest and value greater than $1.3 trillion. In an announcement Wednesday, NBIM described the deal as its “first funding in renewable vitality infrastructure.”
The transaction is ready to finish within the second or third quarter of 2021. Beneath the phrases of the deal, Orsted will retain its place as co-owner of the wind farm and deal with operations and upkeep.
“We’re excited to have made our first unlisted funding in renewable vitality infrastructure, and we sit up for working alongside Ørsted on delivering inexperienced vitality to Dutch households,” Mie Holstad, who’s chief actual belongings officer at Norges Financial institution Funding Administration, mentioned in an announcement.
Situated 23 kilometers off the Dutch coast, Borssele 1 & 2 makes use of 94 wind generators from Siemens Gamesa. Based on Orsted, it’s the world’s second-largest operational offshore wind farm and “provides renewable vitality equal to the annual energy consumption of 1 million Dutch households.”
Europe is a significant participant in offshore wind energy and residential to a lot of large-scale services.
The world’s first offshore wind farm, in waters close to the Danish island of Lolland, was commissioned in 1991.
In 2020, the sector attracted over 26 billion euros of funding, a file quantity, in accordance with latest figures from business physique WindEurope.
The U.S. offshore wind sector, against this, remains to be small however may very well be set for a big growth within the coming years underneath new plans introduced by the Biden administration on the finish of March.
Norway’s fund has what NBIM describes as “a small stake” in over 9,000 corporations globally, with its funding technique based mostly on tips set out by the nation’s ministry of finance.
“The fund should not be invested in corporations that produce sure varieties of weapons, base its operations on coal, or produce tobacco,” NBIM says.
“The fund should additionally not be invested in corporations that by way of their conduct contribute to violations of basic moral norms,” it provides.
As of March 3, 2021, corporations excluded from what NBIM describes as “the fund’s funding universe” embrace: German utility RWE; tobacco big Philip Morris Worldwide; and BAE Programs.