The three companions behind Denmark’s “vitality island” challenge to construct a bodily base for large-scale wind-power manufacturing within the North Sea in the present day introduced a cooperation pact with mortgage-bond specialist Nykredit to probe financing choices.
A consortium of PensionDanmark, PFA and the vitality and fibre optic community agency Andel – referred to as SEAS-NVE earlier than final August – agreed in Might 2020 to finance and operate a planned energy island referred to as “VindØ” (wind island), which is to be the bottom for as much as 10GW of offshore wind generators.
The renewables initiative is a part of a authorities plan to understand the idea of a single construction within the sea, relatively than particular person offshore wind farms, which might be linked to a number of nations’ electrical energy grids in addition to to surrounding offshore wind farms.
The concept is for the vitality islands to be established with out state funding.
Torben Möger Pedersen, chief government officer of PensionDanmark, mentioned: “We within the VindØ consortium are actually happy that Nykredit is now becoming a member of the collaboration on the vitality island within the North Sea.”
This was partly as a result of as a mutual firm, Nykredit slot in properly with the VindØ staff, he mentioned, and partly as a result of it enabled the consortium to safe a complete Danish financing resolution for the “world’s first vitality island”.
PensionDanmark mentioned Nykredit was anticipated to contribute to the planning of the capital and financing construction behind the challenge, in addition to offering a major a part of the debt capital primarily based on the issuance of mortgage bonds – which the pension fund mentioned suited the VindØ consortium’s long-term funding horizon.
Michael Rasmussen, Nykredit’s CEO, mentioned Denmark was to be a “inexperienced pioneer” sooner or later too.
“So now we have a robust want to convey our competencies into play and present the world how with distinctive Danish mortgage financing can help the event of the world’s first vitality island,” he mentioned.
The consortium has mentioned it is going to initially make investments as much as DKK400m (€34m) to develop the challenge.
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