DONG Energy has signed an agreement to divest 50% of the Burbo Bank Extension project to Danish pension provider PKA and KIRKBI A/S, parent company of the LEGO Group.
Each investor will obtain a 25% ownership interest in the project, and the total purchase price amounts to approximately GPB 660 million (DKK 6.6 billion) to be paid in the period 2016-2017.
The 258MW UK offshore wind farm will be constructed by DONG Energy with offshore construction works commencing in the spring 2016. The project is expected to be fully commissioned in the first half of 2017.
DONG Energy will provide operation and maintenance services to Burbo Bank Extension under a long-term O&M agreement. Furthermore, the developer will be responsible for the sale and delivery to the market of the part of the production that is generated by PKA and KIRKBI A/S’s 50% ownership share.
Jørgen Vig Knudstorp, President and Chief Executive Officer of the LEGO Group, said: “This investment is another substantial step for the LEGO Group towards balancing our global energy consumption with renewable energy capacity. Our goal is to fulfil this by 2020 and beyond as we want to make a positive impact on the planet our children will inherit – primarily by providing great play experiences that inspire and develop children, but also through our commitment to the environment.”
The investment made by KIRKBI A/S, which owns 75% of the LEGO Group, is the second major long-term investment within KIRKBI’s strategic investment area – renewables. In 2012, KIRKBI A/S invested in the Borkum Riffgrund 1 offshore wind farm.
This also marks PKA’s fifth investment in an offshore wind farm, of which three are together with DONG Energy. The investment is a part of PKA’s ambition to combine stable long-term returns with investments in renewable energy.
Peter Damgaard Jensen, CEO at PKA, said: “In the spring of 2015 we blacklisted 31 coal companies, which have since lost more than 60% of their value. In the same period, the return on our offshore wind farms has been more than 7%. The first investment in a wind farm by PKA was Anholt offshore wind farm in 2011 together with DONG Energy, and today PKA has invested in five offshore wind farms. Together they will provide renewable energy to about 2 million households. We are proud to be able to provide a good return to the pension savers and at the same time make a positive difference.”
Burbo Bank Extension will consist of 32 turbines and will be the first large-scale wind farm to deploy the new MHI Vestas 8.0 MW turbine. When completed Burbo Bank Extension will be able to supply CO2-free power equivalent to the annual electricity consumption of more than 230,000 households.