Norway’s Sovereign Wealth Fund Makes First Investment In Renewable Energy Infrastructure

SectorFinancial Markets

Share to Linkedin Norway's $1. 3 trillion sovereign wealth fund – the largest in the world – announced its first investment in renewable energy infrastructure Wednesday as part of a diversification away from bonds, equities and real estate amid a global push to fight climate change. Norges Bank Investment Management (NBIM), the asset management arm of Norway's central bank, which manages the sovereign wealth fund, agreed to acquire a 50% stake in the Borssele offshore wind farm in the Netherlands from Danish energy firm Ørsted A/S for €1. 375 billion ($1.

63 billion). When the transaction closes — in the second or third quarter of 2021 — Ørsted will remain the wind project's co-owner and operator. NBIM said Borssele – the second-largest operating wind farm in the world — has a capacity of 752 megawatts and can produce enough energy to supply the annual electricity demand of about 1 million Dutch households. Line Aaltvedt, a spokeswoman for NBIM, told more...