Ørsted and NBIM sign Borssele 1 & 2 agreement

The total value of the transaction is approximately €1.375 billion (approximately 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.

This 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 billion 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 approximately 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 1 million households with green energy in the Netherlands.
• Fully commissioned in 4Q20.

 

 

For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.

Energy Global's Spring 2021 issue

The Spring issue of Energy Global features a varied spectrum of in-depth technical articles detailing recent projects, future projections, and technological advancements in the renewables sector, from companies including GlobalData, Atlas Copco, Watlow, QED Naval, TRACTO, AB Energy, and more.

Don’t forget to sign up to receive future digital issues of Energy Global for free here.

Read the article online at: https://www.energyglobal.com/wind/08042021/rsted-and-nbim-sign-borssele-1-2-agreement/