Home Offshore Energy Ørsted brings in Norges Bank Investment Management as a partner in Borssele...

Ørsted brings in Norges Bank Investment Management as a partner in Borssele 1 & 2

Ørsted has signed an agreement with Norges Bank Investment Management (NBIM), who will be acquiring a 50 % ownership share of Ørsted’s 752 MW Borssele 1 & 2 Offshore Wind Farm, which was commissioned in the fourth quarter of 2020 and generates green power to the equivalent of one million households’ annual power consumption in the Netherlands.

The total value of the transaction is approx. EUR 1.375 billion (approx. DKK 10.2 billion) which is to be paid upon closing of the transaction. Closing is expected around summer 2021. As part of the agreement, Ørsted will continue to provide long-term operations and maintenance (O&M) services from its O&M base at the Port of Vlissingen in the Netherlands. Furthermore, Ørsted will provide NBIM with balancing services and a long-term route to market for the renewable electricity generated by Borssele 1 & 2.

Today’s agreement marks NBIM’s first investment in unlisted renewable energy infrastructure.

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

Mie Holstad, Chief Real Assets Officer at Norges Bank Investment Management, says: “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.”

Steven Engels, General Manager for Ørsted Benelux, says: “I look forward to working with NBIM on delivering green power to the Dutch energy mix. Borssele 1 & 2 kickstarted the Netherlands’ ambitious programme for offshore wind build-out and will help the country meet its 2030 carbon reduction goals. We remain committed to the Netherlands and the Zeeland region to contribute to the energy transition for many years to come. At the same time, the wind farm creates benefits for the local economy by supporting employment and skills development.”

The divestment to NBIM is subject to regulatory approvals.

The information provided in this announcement does not change Ørsted’s previous financial guidance for the 2021 financial year of an EBITDA excluding new partnership agreements of DKK 15-16 bn or the announced expected investment level for 2021. In addition to the above, the EBITDA effect in 2021 from the Borssele 1 & 2 partnership, is expected to amount to around DKK 5 billion.

Facts about Borssele 1 & 2

  • 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.
  • Located 23 km off the coast of the Dutch region of Zeeland at water depths ranging from 14 to 36 m.
  • The 94 Siemens Gamesa 8 MW offshore wind turbines of Borssele 1 & 2 generate enough power to annually cover one million households with green energy in the Netherlands.
  • Fully commissioned in Q4 2020.