Ørsted, formerly Dong Energy has agreed to sell 50% of stake in Walney Extension offshore wind farm to a consortium of Danish pension funds PKA and PFA.
As per the agreement, PKA and PFA will acquire 25% stake each in the 659MW offshore wind farm. The remaining 50% of the stake will remain with Ørsted, which will construct and provide long term operations and maintenance services for the wind farm.
The sale price of £2bn includes the 50% ownership share along with a commitment to pay funds for 50% of EPC contract for the whole wind farm. This amount will be paid either by the end of this year or in the beginning of next year.
Ørsted state that the divestment is in line with the company’s expectations of creating value for the project.
Ørsted CEO Henrik Poulsen said: “We’re delighted to welcome two Danish pension funds as co-owners of Walney Extension. We already have a strong partnership with PKA on three other offshore wind farms and we look forward to building an equally long-lasting relationship with PFA on what will be the world’s biggest wind farm when completed.
“Both partners are committed to the green energy transition and I’m pleased that our offshore wind assets continue to be attractive to institutional investors.”
Walney Extension offshore wind farm is located in 19km from the Walney Island coast in the Irish Sea. It is expected to provide enough clean electricity to power more than 500,000 UK homes.
The wind farm will be powered by 87 turbines, out of which 40 will be from MHI Vestas and 47 will be Siemens Gamesa. While MHI Vestas will supply 8MW turbines, Siemens Gamesa will supply 7MW turbines for the wind project. Walney Extension is expected to be fully commissioned in second half of next year.
PKA CEO Peter Damgaard Jensen said: “This is the sixth offshore wind farm PKA invest in since 2011. We focus on this type of investments because we continue to see interesting opportunities in combining good returns to our members and at the same time supporting mitigation of climate changes.
“Investment in offshore windfarms has so far made two-digit returns and we are pleased to see this investment underlining our climate strategy. For us it is good business and common sense.”
Macquarie has agreed to provide long-term debt facility to fund the acquisition. On behalf of PKA and PFA, Macquarie Infrastructure Debt Investment Solutions (MIDIS) will provide part finance for the 50% acquisition and construction of the offshore wind farm.
Image: Walney Offshore Windfarm. Photo: Courtesy of DONG Energy A/S.