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The world’s biggest sovereign wealth fund, Norway’s $1.8 trillion oil fund, will buy 49% in two offshore wind farm developments of RWE for a total of $1.5 billion (1.4 billion euros), the fund’s manager, Norges Bank Investment Management, said on Monday.
The agreed price for 49% of the two offshore wind projects, Nordseecluster in the German North Sea and Thor in the Danish North Sea, values the entire projects at around $3.1 billion (2.87 billion euros), the Norwegian fund said.
Germany’s RWE remains in charge of construction and operations throughout the lifecycle of these offshore wind farms, which are currently under construction.
RWE is the developer of the 1.6-gigawatt (GW) Nordseecluster and 1.1-GW Thor offshore wind projects, which are expected to reach commercial operations between 2027 and 2029. Once fully commissioned, the wind farms will produce enough electricity to supply more than 2.6 million households in Germany and Denmark, RWE says.
Closing of the transaction with the Norwegian sovereign wealth fund is subject to customary approvals and expected by the beginning of the third quarter of 2025.
Norway’s wealth fund, which is commonly referred to as ‘Norway’s oil fund’ because it was created with oil and gas revenues, invests in renewable energy assets and real estate and is a shareholder in many large companies in the world, including Big Oil. The giant fund owns, on average, 1.5% of all listed companies globally.
RWE of Germany, on the other hand, has just pledged to slash capital expenditure (capex) for low-carbon energy projects by $10.8 billion (10 billion euros) amid mounting uncertainties about renewable energy policies and profitability.
“The company is responding to regulatory uncertainties, constraints in the supply chain, geopolitical risks and higher interest rates,” RWE said earlier this month.
“Given higher uncertainties in the investment environment, we have raised the requirements for future investments. As a result of stricter risk management and higher return expectations, we will invest less than previously planned through to 2030,” CEO Markus Krebber said.
By Tsvetana Paraskova for Oilprice.com
The post Norway’s Oil Fund to Buy Stakes in Offshore Wind for $1.5 Billion appeared first on Energy News Beat.
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