Denmark’s DONG Energy has agreed to divest 50% of the 258 MW UK offshore wind farm project Burbo Bank Extension 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. The total sale price was £660 million ($958 million).
The Burbo Bank Extension wind farm will be located in the Irish Sea, 7 kilometers from the coast of Liverpool. The wind farm will be constructed by DONG, with offshore construction works commencing in the spring 2016. The project is expected to be fully commissioned in the first half of 2017. The wind farm consists of 32 turbines and will be the first large-scale wind farm to deploy the new MHI Vestas 8.0 MW turbine. When completed the wind farm will be able to supply CO2-free power equivalent to the annual electricity consumption of more than 230,000 households.
“I am delighted to welcome the LEGO Group and PKA to a new partnership with DONG Energy,” said Henrik Poulsen, CEO of DONG Energy.
”I am proud to announce our investment in the Burbo Bank Extension together with our partners Dong Energy and PKA,” said Jørgen Vig Knudstorp, president and CEO of the LEGO Group.
For the LEGO Group the investment fits well with its high ambition of making a positive impact on the environment. The investment is made by KIRKBI A/S, which owns 75% of the LEGO Group, and the investment in Burbo Bank Extension is the second major long-term investment within KIRKBI’s Renewables strategic investment area. In 2012, KIRKBI A/S invested in the Borkum Riffgrund 1 offshore wind farm. Both investments support the LEGO Group in balancing its global energy consumption with renewable energy capacity.
This 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.
DONG Energy A/S is one of the leading energy groups in Northern Europe, headquartered in Denmark. Around 6,700 ambitious employees are engaged in developing, constructing and operating offshore wind farms; generating power and heat from our power stations; providing energy to residential and business customers on a daily basis; and producing oil and gas. Group revenue was DKK 71bn (EUR 9.5bn) in 2015.
The LEGO Group is a privately held, family-owned company with headquarters in Billund, Denmark, and main offices in Enfield, USA, London, UK, Shanghai, China, and Singapore. Founded in 1932 by Ole Kirk Kristiansen, and based on the iconic LEGO® brick, it is one of the world’s leading manufacturers of play materials. Guided by the company spirit: “Only the best is good enough”, the company is committed to the development of children and aims to inspire and develop the builders of tomorrow through creative play and learning.
PKA is one of the largest pension funds in Denmark with 275,000 members and assets of 235 billion DKK. PKA has invested about 17 billion DKK in climate-related projects, including wind farms, green bonds and the Danish Climate Investment Fund. The aim is that climate-related projects will be 10% of total investments in 2020. With Burbo Bank Offshore Wind Farm in England, PKA has invested in five offshore wind farms in four countries: Anholt in Denmark, Gode Wind II and Butendiek in Germany and Gemini in the Netherlands. PKA’s total investment of more than 9 billion DKK will provide renewable energy to about 2 million households.