DONG Energy has signed and completed an agreement to divest 50% of the 258 MW UK offshore wind farm project, Burbo Bank Extension, to Danish pension provider PKA and KIRKBI, parent company of the LEGO Group. Each investor will obtain a 25% ownership interest in the project.
Burbo Bank Extension will be constructed by DONG Energy with offshore construction works commencing in the spring 2016. The project is expected to be fully commissioned in H1 2017. The total purchase price for the investors amounts to approximately US$958.6 million (£660 million) to be paid in the period 2016-2017.
Burbo Bank Extension will consist of 32 turbines and will be the first large-scale wind farm to deploy the new MHI Vestas 8 MW turbine. When completed Burbo Bank Extension will be able to supply CO2-free power equivalent to the annual electricity consumption of more than 230,000 households.
DONG Energy will provide operation and maintenance (O&M) services to Burbo Bank Extension under a long-term O&M agreement. Furthermore, DONG Energy will be responsible for the sale and delivery to the market of the part of the production that is generated by PKA and KIRKBI’s 50% ownership share.
For the LEGO Group the investment fits well with its goal of making a positive impact on the environment.
”This investment is another substantial step for the LEGO Group towards balancing our global energy consumption with renewable energy capacity,” said Jørgen Vig Knudstorp, president and chief executive officer of the LEGO Group.
The investment is made by KIRKBI, which owns 75% of the LEGO Group. Burbo Bank Extension is the second major long-term investment within KIRKBI’s strategic investment area: Renewables. In 2012, KIRKBI invested in the Borkum Riffgrund 1 offshore wind farm.
This is PKA’s fifth investment in an offshore wind farm, of which three are together with DONG Energy.