NBIM Embraces Unlisted Renewable Energy Investments

    Stockholm (NordSIP) – Norges Bank Investment Management (NBIM) has announced it will acquire a 50% interest in the Borssele 1 & 2 offshore wind farm located in the Netherlands from Ørsted, the Danish energy company, will remain co-owner and operator of the project. The agreement marks NBIM’s first investment in unlisted renewable energy infrastructure.

    NBIM will pay €1.375 billion for its 50% stake in the offshore wind farm. No external debt financing will be involved in the transaction. The agreement was signed on 7 April 2021, with completion expected in the second or third quarter of 2021.

    “We are excited to have made our first investment in unlisted renewable energy infrastructure and pleased to partner with Ørsted as the market leader in offshore wind. Borssele 1 & 2 is a high-quality offshore wind asset, and the acquisition is in line with our strategy to build a high-quality portfolio of wind and solar power generation assets. The unlisted renewable energy infrastructure strategy supplements our existing unlisted real estate portfolio well, and we draw on our long experience with direct investments,” says Mie Holstad, Chief Real Assets Officer at NBIM.

    “Unlisted renewable energy infrastructure is a new asset class for the fund, which we invest in to improve the overall diversification of the fund. We look forward to continuing to execute on our investment strategy for unlisted renewable energy infrastructure,” explains Nicolai Tangen, CEO of NBIM.

    The Borssele 1 & 2 offshore wind farm is the largest operational offshore wind farm in the Netherlands – and the second largest operational offshore wind farm in the world – with an installed capacity of 752 MW. It is located 23km off the coast of the Dutch region of Zeeland at water depths ranging from 14m to 36m and consists of  94 Siemens Gamesa 8 MW offshore wind turbines.

    “As one of the world’s largest institutional investors, Norges Bank Investment Management is making a difference by making sustainable investments,” adds 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.”

    “We are very pleased to partner on Borssele 1&2 with Ørsted, the market leader in offshore wind. We are excited to have made our first unlisted investment in renewable energy infrastructure, and we look forward to working alongside Ørsted on delivering green energy to Dutch households,” Mie Holstad, Chief Real Assets Officer at Norges Bank Investment Management, concludes.

    Image courtesy of Ørsted

    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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