OSLO, Apr 7 (Reuters) – Norway’s sovereign wealth fund, the world’s largest at $ 1.3 trillion, has made its first direct investment in a renewable energy project, a new asset class for the fund, it reported. on Wednesday.
The Norwegian fund bought a 50% stake in the Borssele 1 and 2 wind farm, located off the coast of the Netherlands, for 1,375 million euros (1,630 million dollars) from the Danish company Orsted, as announced by the fund and the company separately.
Borssele is the second largest offshore wind farm in the world in operation.
These types of direct investments are new to the Norwegian fund which, until last year, could only invest in stocks, bonds and real estate.
The deal was signed on Wednesday and is expected to be completed in the second or third quarter of 2021.
The Norwegian fund aims to invest around NOK 100 billion ($ 12 billion) between 2020 and 2022 in unlisted renewable projects, such as wind farms and solar farms, with a primary focus on North America and Europe.
In October, its CEO, Nicolai Tangen, said the fund was having trouble finding suitable investments due to a shortage of projects and strong competition to participate in them.
(1 dollar = 0.8415 euros)
($ 1 = NOK 8.4815)
(Information from Gwladys Fouche from Oslo and Nikolaj Skydsgaard from Copenhagen; edited by Terje Solsvik, Larry King; translated by Darío Fernández in the Gdansk newsroom)