Orsted A/S signed an agreement with the Norges Bank Investment Management(NBIM) to trade 50% ownership in its 752MW Borssele 1 & 2 offshore Wind Farms for an investment of $1,623 million.
The Borssele 1 & 2 wind farms represent Orsted’s first offshore farms in the Netherlands. It is located 23km off the coast of Zeeland. Once completed, it will comprise 94 Siemens Gamesa 8 MW wind turbines, making it the largest operational offshore wind farm in the Netherlands, second only in the world. The deal achieved completion upon approvals from certain regulatory bodies on May 31, 2021. The acquisition pact marks NBIM’s first investment in the unlisted energy infrastructure. The fund amended its management mandate on January 1, 2020, to invest up to 2% of the fund in unlisted infrastructure for renewable energy. Orsted will co-own the project and provide operational and maintenance services from its base at the port of Vlissingen.
This agreement is in line with Orsted's ambitious target of reducing Offshore costs and reaching a price of $119 per MWh in the new offshore wind project by 2020. It has proudly accomplished its goal 4-years ahead of time, with the cost of electricity reaching the $92 per MWh mark.
Orsted continues to build more offshore wind farms than any other developer in the world. When it was established in 2006, Orsted generated 85% of the energy from coal. Today the ratio has reversed and 86% of its generated energy comes from renewable resources. It continues to expand its business to remain the best in the world. The world’s first offshore wind farm was Vindeby Offshore Wind Farm, erected in 1991, on the island Lolland. The offshore wind energy generation grew by over 30% since 2011. And, as of 2020, the total offshore wind power capacity amounts to 35.3GW with the United Kingdom, China, and Germany accounting for more than 75% of the installed capacity.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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