Swedish pension fund AMF acquires stake in offshore wind farm

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Swedish pension fund AMF acquires stake in offshore wind farm

Vattenfall has signed a GBP 237 million (US$346 million) deal to partner-up with leading Swedish pension group AMF on an UK off shore wind farm. 

The partnership agreement means that AMF will take a 49% share in Vattenfall’s 150 MW Ormonde Offshore Wind Farm for GBP 237 million. Vattenfall will continue to operate the wind farm as majority shareholder.

Ormonde is located about ten kilometres outside Barrow-in-Furness in the north west of England. It consists of 30 5MW turbines and was commissioned in 2012.

Magnus Hall, CEO of Vattenfall, said when the company disclosed the transaction:

”The market has shown great interest in Ormonde. This is primarily because the wind farm is profitable and is considered to have excellent prospects for continued stable profitability. AMF is a serious, long-term investor and we are very pleased with the deal."

Magnus Hall recently explained in a debate article that Vattenfall intends to invest more than SEK 50 billion (US$5.85 billion) in renewable generation in the next five years.

He explained that the reason Vattenfall is bringing a partner into Ormonde is that they need to release capital to invest in renewables. "We can’t manage such growth in new generation capacity on our own. It requires additional capital, and that is what we are bringing in now."

In late 2014, the insurance company Skandia invested SEK 1 billion in four of Vattenfall’s wind power projects in Sweden. That was the first time Vattenfall brought in an investment partner in Sweden.

Magnus Hall continued:

"The partnership strategy has emerged more clearly of late, but it is not actually new for us. We have owned hydro power, nuclear power and heat operations together with others for a long time.

We might well do that. In terms of wind power in particular our strengths are planning, building and running wind farms. Having 100% ownership is not the most important thing. Bringing in partners is a model that suits us."

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