PFA invests a large amount in the world’s biggest offshore wind farm

PFA’s customers have become co-owners of the worlds’ biggest offshore wind farm which will be capable of producing enough power for more than 500,000 homes - the largest single investment in PFA’s history.

PFA, which is Denmark’s largest commercial pension company, buys, together with PKA, 50 per cent of the offshore wind farm from Ørsted (formerly known as DONG Energy) to the amount of approximately GBP 2.000 million. This way, the two pension companies each obtain an ownership share of 25 per cent, whereas Ørsted retains a 50 per cent ownership share.

For PFA's part, it means a direct investment of approximately GBP 330 million. With this largest single investment in PFA's history, PFA marks an important milestone in its strategic investment expansion when it comes to investments in green energy and infrastructure. In addition, the acquisition is financed through a bond issue (investment grade), which the consortium consisting of PFA and PKA is behind, to some of the world’s largest institutional investors.

“With this investment, we take yet another step into the renewable energy market which is actively contributing towards the green transition. We are proud to do so together with our business partner Ørsted, which is a front runner in this field and which has accumulated great expertise when it comes to establishing efficient offshore wind farms. The investment fits perfectly into our strategic work with focus on alternative investments that contribute to providing our customers with reliable and stable long-term returns,” says Allan Polack, Group CEO, PFA.

Once the construction of the offshore wind farm with its 87 wind turbines is finished, it will have a total capacity of 659 MW, which corresponds to the power consumption for more than 500,000 households.

Strong partnership and attractive return

It was important to PFA to join a strong partnership with Ørsted and PKA already in the construction phase, as it makes it possible to follow the project closely in the early stages. Included in the purchase is an attractive inflation-adjusted fixed-price contract which will run for 15 years and provide the financial security for the investment as well as ensure a stable long-term return.

“We have specifically focused on entering the market for major offshore wind farms as we believe it holds great potential. The Walney Extension Offshore Wind Farm investment represents a considerable extension of our portfolio of alternative investments, which is expanding as planned and which has become an important element in the overall investment strategy. We have formed a strong team, and now we begin to see the result of the major deals in which we have engaged ourselves,” says Henrik Nøhr Poulsen, Executive Director and responsible for shares and alternative investments, PFA.

The construction of the wind turbines is already well underway, and the first wind-generated electricity is reaching land as the 87 giant turbines are put up step by step. When Walney Extension has become fully operational, it will outdistance London Array and take the position as the world’s biggest operating offshore wind farm.

Facts about Walney Extension Offshore Wind Farm

Ørsted (formerly known as DONG Energy) has an ownership share of 50 per cent, whereas PFA and PKA each have an ownership share of 25 per cent.

Is situated in the Irish Sea approximately 19 km from Walney Island in Cumbria in the north western England covering an area of 145 km2

The wind farm will have a total capacity of 659 MW and will thus be able to provide electricity to more than half a million UK homes.

The wind farm will include 87 offshore wind turbines. MHI Vestas Offshore Wind will build 40 wind turbines of the type V164-8.0 MW, whereas Siemens Gamesa will build 47 wind turbines of the type SWT-7.0 MW-154 turbines.

When Walney Extension has become fully operational, it will outdistance London Array and take the position as the world’s biggest operating offshore wind farm.

Facts about PFA and infrastructure investments

With more than GPD 60 billion (DKK 500 billion Danish kroner) under management and 1.2 million individual customers, PFA is the largest commercial pension company in Denmark.

PFA is working determinedly at increasing the number of alternative investments, and, today, our investment team is very strong in this area. Funds at the amount of GPD 4,8 billion (DKK 40 billion Danish kroner) have been earmarked for investments in unlisted shares, infrastructure and credit towards 2020.

PFA has recently invested a three-digit million DKK amount in centrally situated parking facilities in the USA in the company InterPark together with a small group of major foreign investors. Last year, PFA invested in six solar parks in England, just as it committed itself to investing in two of the world’s leading infrastructure funds.