Photo: Ørsted

Norwegian oil fund partners with Ørsted on Borssele 1&2 offshore wind farm

Ørsted has signed an agreement with Norges Bank Investment Management (NBIM) to divest a 50% ownership share in its Borssele 1 & 2 offshore wind farm in the Netherlands.

As part of the deal, Ørsted will continue to provide long-term operations and maintenance services from its O&M base at the Port of Vlissingen, as well as provide NBIM with balancing services and a long-term route to market for the renewable electricity generated by Borssele 1 & 2.

NBIM, asset management division of Norges Bank, manages the Government Pension Fund Global which aims to ensure long-term management of revenue from Norway’s oil and gas resources in the North Sea.

The total value of the transaction is circa EUR 1.375 billion which is to be paid upon closing of the transaction, expected around summer. The divestment is subject to regulatory approvals.

The agreement is said to mark NBIM’s first investment in unlisted renewable energy infrastructure.

“As one of the world’s largest institutional investors, Norges Bank Investment Management is making a difference by making sustainable investments,” said Martin Neubert, Chief Commercial Officer and Deputy Group CEO of Ørsted.

“We’re delighted to welcome NBIM as 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.”

Borssele 1 & 2 comprises 94 Siemens Gamesa 8 MW turbines located 22 km off the coast of the province of Zeeland. The 752 MW project was fully commissioned in November last year.