Norway’s sovereign wealth fund has acquired a 50% stake of Denmark’s Orsted in the Borssele 1 and 2 offshore wind farm for €1.375 billion ($1.63 billion). This marks the fund’s first direct investment in a renewable energy project. The deal was signed on April 7 and expected to be closed in the second or third quarter of 2021. After the stake acquisition, Orsted will continue operating the facility located in the Netherlands’ waters.
Until 2020, the Norwegian parliament only allowed the fund to invest through stocks, bonds, and property. As mandated by parliament, the sovereign wealth fund plans to invest $12 billion in unlisted renewable projects in North America and Europe only until 2022. One of the fund’s officials said it avoids spending too much on too many assets.
