PFA takes part in the inauguration of the world’s biggest offshore wind farm
The world’s biggest offshore wind farm, Walney Extension Offshore Wind Farm, is officially inaugurating today when PFA together with Ørsted and PKA switches on green electricity for 600,000 households
Today, Walney Extension Offshore Wind Farm, situated in the north western England, is inaugurating, and thus becoming the world’s biggest operating offshore wind farm.
In November 2017, PFA acquired, together with PKA, 50 per cent of the offshore wind farm from Ørsted for approximately DKK 17 billion. This way, the two pension companies each obtained an ownership share of 25 per cent, whereas Ørsted retained a 50 per cent ownership share. For PFA's part, it means a direct investment of approximately DKK three billion. In addition, the acquisition has been financed through a bond issue, which PFA and PKA are responsible for.
“This is an event of historical dimensions, and at PFA we are very proud of being co-owner of the world’s biggest offshore wind farm in a strong partnership with Ørsted and PKA. It is a milestone in the sustainable energy market, and an important contribution towards green transition. It shows that we are in the forefront when it comes to establishing and financing the biggest offshore wind farms in the world,” says Henrik Nøhr Poulsen, Executive Director and responsible for shares and alternative investments at PFA.
The offshore wind farm consists of 87 wind turbines with a total capacity of 659 MW, which corresponds to the power consumption for 600,000 households.
Strong and stable long-term returns
The investment in Walney Extension Offshore Wind Farm means that we can profit by an attractive 15-year fixed-price contract, which is adjusted for inflation and provides stability and financial robustness for the investment.
“The investment is the largest renewable investment ever made by PFA, and it represents a considerable extension of our portfolio of alternative investments. It fits perfectly into our strategic focus on providing our customers with strong and stable long-term returns,” says Henrik Nøhr Poulsen, Executive Director.
Since the beginning of 2016, PFA has been investing extensively in some of the largest and most significant alternative investments, for instance, through the acquisition of TDC and investments in Nykredit, Danish Ship Finance, Interpark, Avantor and Walney Extension Offshore Wind Farm. Today, the alternative investment portfolio exceeds DKK 30 billion.
Further information
Kristian Lund Pedersen, Chief Press Officer, +45 39 17 58 79 - klp@pfa.dk.
Facts about Walney Extension Offshore Wind Farm
- Ørsted has an ownership share of 50 per cent, whereas PFA and PKA each have an ownership share of 25 per cent.
- The offshore wind farm 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
- It has a total capacity of 659 MW and is thus able to provide wind-generated electricity to 600,000 UK homes.
- The wind farm consists of 87 offshore wind turbines. 40 MHI Vestas Offshore Wind of the type V164-8,0 MW, and 47 Siemens Gamesa wind turbines of the type SWT-7.0 MW-154 turbines.
- Walney Extension Offshore Wind Farm outdistances London Array and takes the position as the world’s biggest operating offshore wind farm.
Facts about PFA and alternative investments
- With more than DKK 500 billion 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, its portfolio amounts to more than DKK 30 billion in unlisted shares, infrastructure and credit. The aim is to invest DKK 10 – 15 billion a year in alternatives.
- PFA has taken part in some of the largest and most significant alternative investments in recent years, for instance the acquisition of TDC and investments in Nykredit, Interpark, Danish Ship Finance, Avantor and Walney Extension Offshore Wind Farm.
- PFA wants to make target investments in sustainable energy sources, and besides its investment in the Walney Extension Offshore Wind Farm in 2016, PFA has made investments in six solar parks in England. Major commitments have moreover been made towards making investments in a number of the world’s leading infrastructure funds.
- The low-interest environment generates requirements for new return sources and increased portfolio diversity. The portfolio stability will increase as a result of investments with long-term stable earnings. Two-thirds of the alternative investments in which PFA is investing, are characterised by stable returns and low risk.