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Norway’s sovereign wealth fund makes first direct investment in a renewable energy project

April 07, 2021


Norway’s $1.3 trillion sovereign wealth fund has made its first direct investment in a renewable energy project, a new asset class for the world’s largest state-owned investor, it said on Wednesday.

The fund bought a 50% stake in the Borssele 1 and 2 wind farm off the Netherlands for 1.375 billion euros ($1.63 billion) from Denmark’s Orsted, which will continue to co-own and run the facility.

Such direct investments are new for the fund which, until last year, was only allowed by parliament to invest in stocks, bonds and property.

The Borssele is the world’s second-largest offshore wind farm in operation, with an installed capacity of 752 megawatts, which can produce the equivalent of a year’s annual electricity consumption for around one million Dutch households.

The agreement was signed on Wednesday, with completion expected in the second or third quarter of 2021.

Overall, the Norwegian wealth fund is looking to invest some 100 billion Norwegian crowns ($12 billion) between 2020 and 2022 in unlisted renewable projects such as wind parks and solar farms, looking at North America and Europe only, as mandated by parliament.

[Gwladys Fouche and Nikolaj Skydsgaard]

More: Norway’s sovereign wealth fund pushes into renewables with $1.6 billion Orsted deal

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