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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Dong Energy A/S (Fredericia, Denmark) has helped secure its financial future with the sale of a 25% stake of the world's largest windfarm, London Array, for 779 billion ($1.05 billion).
The company holds a 50% stake in the London Array windfarm off the Kent coast in southeast England. Officially opened last July, it has 175 turbines and a total generating capacity of 630-megawatts (MW), enough to power nearly half a million homes. For additional information, see July 8, 2012, article - World's Largest Offshore Windfarm Officially Opened.
Dong has sold half of its stake to Canadian public pension fund manager, La Caisse de dépôt et placement du Québec (La Caisse). The other partners include E.ON AG (OTC:EONGY) (Dusseldorf, Germany) with a 30% share and Masdar (Abu Dhabi, United Arab Emirates) with a 20% share.
"Farm down of our ownership shares in wind projects is a central part of our business model and our strategy is to continuously enter into partnership agreements with industrial and financial partners to extract part of the value creation from our projects, share the risk in our portfolio and attract capital to be able to continue to invest in new offshore wind farms," explained Samuel Leupold, Executive Vice President of Dong Energy Wind Power. "We look forward to continuing the collaboration with the partners behind the consortium of London Array, now including La Caisse."
Macky Tall, Senior Vice-President, Infrastructure, at La Caisse added: "This is an opportunity for us to invest, alongside established partners, in a quality asset in a growth-driven sector. We are investing in this project with a long-term horizon and expect to generate attractive returns for many years ahead. We have had excellent dialogue with the company over the last several months and are delighted to announce this agreement today."
Last August, Dong sold a 26% share in its company for 11 billion Danish crowns ($2 billion) in an effort to strengthen its financial situation and boost its dominant position in the European offshore wind sector. The company is Europe's leading offshore wind energy company with more than 2,000 MW of installed capacity off the coasts of Germany, the U.K. and Denmark. For additional information, see August 21, 2013, article - Dong Energy Raises $2 billion in Share Sell-off.
In December, Dong strengthened its growing offshore portfolio with the purchase of the proposed 580 MW Race Bank offshore windfarm off the east coast of England, from energy utility Centrica plc (OTC:CPYYY) (Windsor, England). It paid 59 million ($81 million) for the consented project. For additional information, see December 19, 2013, article - Dong Snaps Up 580-Megawatt Race Bank Windfarm.
Dong is aiming to invest more than 4 billion ($5.2 billion) between 2013 and 2014 in energy projects, primarily offshore wind projects. In March last year, the company revealed its investment strategy to 2020, showing that it plans to quadruple its offshore capacity from the then total of 1,700 MW to 6,500 MW by the end of the decade.
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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
The company holds a 50% stake in the London Array windfarm off the Kent coast in southeast England. Officially opened last July, it has 175 turbines and a total generating capacity of 630-megawatts (MW), enough to power nearly half a million homes. For additional information, see July 8, 2012, article - World's Largest Offshore Windfarm Officially Opened.
Dong has sold half of its stake to Canadian public pension fund manager, La Caisse de dépôt et placement du Québec (La Caisse). The other partners include E.ON AG (OTC:EONGY) (Dusseldorf, Germany) with a 30% share and Masdar (Abu Dhabi, United Arab Emirates) with a 20% share.
"Farm down of our ownership shares in wind projects is a central part of our business model and our strategy is to continuously enter into partnership agreements with industrial and financial partners to extract part of the value creation from our projects, share the risk in our portfolio and attract capital to be able to continue to invest in new offshore wind farms," explained Samuel Leupold, Executive Vice President of Dong Energy Wind Power. "We look forward to continuing the collaboration with the partners behind the consortium of London Array, now including La Caisse."
Macky Tall, Senior Vice-President, Infrastructure, at La Caisse added: "This is an opportunity for us to invest, alongside established partners, in a quality asset in a growth-driven sector. We are investing in this project with a long-term horizon and expect to generate attractive returns for many years ahead. We have had excellent dialogue with the company over the last several months and are delighted to announce this agreement today."
Last August, Dong sold a 26% share in its company for 11 billion Danish crowns ($2 billion) in an effort to strengthen its financial situation and boost its dominant position in the European offshore wind sector. The company is Europe's leading offshore wind energy company with more than 2,000 MW of installed capacity off the coasts of Germany, the U.K. and Denmark. For additional information, see August 21, 2013, article - Dong Energy Raises $2 billion in Share Sell-off.
In December, Dong strengthened its growing offshore portfolio with the purchase of the proposed 580 MW Race Bank offshore windfarm off the east coast of England, from energy utility Centrica plc (OTC:CPYYY) (Windsor, England). It paid 59 million ($81 million) for the consented project. For additional information, see December 19, 2013, article - Dong Snaps Up 580-Megawatt Race Bank Windfarm.
Dong is aiming to invest more than 4 billion ($5.2 billion) between 2013 and 2014 in energy projects, primarily offshore wind projects. In March last year, the company revealed its investment strategy to 2020, showing that it plans to quadruple its offshore capacity from the then total of 1,700 MW to 6,500 MW by the end of the decade.
View Project Report - 78000290 78000307 78000293
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
