The Storebrand Infrastructure Fund has acquired an equity stake in He Dreiht, a construction-ready 960 MW offshore wind farm in the German North Sea. Storebrand's strategic infrastructure partner, AIP, has formed a consortium with Allianz Capital Partners (ACP) and Norges Bank (NBIM) acquiring 49.9% of the project. For its part, Storebrand Infrastructure Fund is investing more than NOK 1bn in the transaction.
An ambitious energy transition project
When completed, He Dreiht will consist of 64 V236- 15.0MW wind turbines supplied by Vestas. Project construction will begin in 2024, working towards a planned commercial operation date (COD) by the end of 2025, at which point it will be the largest operational offshore wind farm in Germany.
He Dreiht represents an attractive combination of key infrastructure characteristics and meaningful impact on the path to net zero. The project is located in a dedicated zone for offshore wind development in the German Economic Exclusive Zone of the North Sea. When completed, He Dreiht is expected to produce clean energy for 1.1m households. The project's projected long and stable cash flows provide characteristics that we consider attractive in a balanced portfolio.
The offshore wind farm is expected to produce about 5.3 terawatt-hours (TWh) of renewable electricity annually, offsetting the equivalent of approximately 2.7 million tons of carbon dioxide. As the recent UN IPCC report has noted, the world urgently needs investment in efforts to respond to the climate challenge at speed and scale. We'll continue to focus on projects such as this, with projected significant climate impact and stable long-term returns. In Europe alone, according to McKinsey, USD 28 trillion of investment will be needed to reach net zero emissions.
He Dreiht represents an attractive combination of key infrastructure characteristics and meaningful impact on the path to net zero. The project is located in a dedicated zone for offshore wind development in the German Economic Exclusive Zone of the North Sea. When completed, He Dreiht is expected to produce clean energy for 1.1m households. The project's projected long and stable cash flows provide characteristics that we consider attractive in a balanced portfolio.
The offshore wind farm is expected to produce about 5.3 terawatt-hours (TWh) of renewable electricity annually, offsetting the equivalent of approximately 2.7 million tons of carbon dioxide. As the recent UN IPCC report has noted, the world urgently needs investment in efforts to respond to the climate challenge at speed and scale. We'll continue to focus on projects such as this, with projected significant climate impact and stable long-term returns. In Europe alone, according to McKinsey, USD 28 trillion of investment will be needed to reach net zero emissions.
Closely engaged with EnBW
The German utility company Energie Baden-Württemberg (EnBW), which has longstanding offshore wind experience in constructing and operating wind farms in Germany, is the developer and current owner of the project. EnBW is one of the largest energy suppliers in Germany and within Europe, providing services to approximately 5.5 million customers. The company already operates two offshore wind farms of a smaller size near the location of He Dreiht.
Post-transaction, EnBW will remain as majority owner, while also taking on responsibility for the construction and long-term operation of the wind farm. Once the facility is operational, EnBW will also be the long-term off-taker of the produced electricity.
Post-transaction, EnBW will remain as majority owner, while also taking on responsibility for the construction and long-term operation of the wind farm. Once the facility is operational, EnBW will also be the long-term off-taker of the produced electricity.
About Storebrand Infrastructure Fund
The Storebrand Infrastructure Fund offers investors the opportunity to invest, alongside Storebrand, in sustainable infrastructure assets. To date, the fund has made eight investments, all within key infrastructure sectors such as on- and offshore wind, solar, district heating and electric transport. The fund works closely with selected strategic partners such as AIP.
About AIP Management
AIP is an investment manager, partly owned by Storebrand, dedicated to infrastructure investing and management of infrastructure assets supporting the energy transition in Europe and North America.
