Denmark-based company Dong Energy has agreed to sell 50% of its stake in the 258MW offshore wind farm Burbo Bank Extension in UK to Danish pension provider PKA and an affiliate of Lego Group, Kirkbi.
Following the deal, PKA and Kirkbi will each own 25% interest in the farm, for which they invested a total of £660m, which will be paid during 2016-17.
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To be built by DONG Energy, the offshore construction works of Burbo Bank Extension will start this year, with commissioning expected in the first half of next year.
The farm will be equipped with 32 MHI Vestas 8.0MW turbines.
Upon completion, Burbo Bank Extension will provide enough clean energy equal to the annual electricity use of over 230,000 households.
Under a long-term O&M agreement, DONG Energy will offer operation and maintenance services to Burbo Bank Extension and will deliver the power to be generated by PKA and Kirkbi to the market.
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By GlobalDataWith the investment, Lego Group aims to fulfil its goal to balance the company’s global energy consumption with renewable energy capacity by 2020 and beyond.
PKA CEO Peter Damgaard Jensen 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."
Last July, DONG Energy entered into an agreement with French renewable energy Group EDF Energies Nouvelles to sell its lease for the offshore wind demonstration site in Frederikshavn, Denmark.
