DONG Energy divests 50 per cent of the German offshore wind farm project Gode Wind 2 to a consortium of Danish pension funds
Friday, Jul 18, 2014

Today, DONG Energy signed an agreement to sell 50 per cent of the 252 MW German offshore wind farm project Gode Wind 2 to a consortium of Danish pension funds (PKA, Industriens Pension, Lærernes Pension and Lægernes Pensionskasse) that will make 840,000 pension savers co-owners of the wind farm.

The total sales price amounts to approximately EUR 600 million (DKK 4.5 billion), which will be paid in the period from 2014 to 2016. At completion of the transaction, PKA will, acquire 24.75 per cent of Gode Wind 2, with Industriens Pension acquiring 10.5 per cent, Lærernes Pension 8.75 per cent and Lægernes Pensionskasse 6 per cent.

Construction of Gode Wind 2 is expected to commence in 2015, and full commissioning for this and the neighbouring wind farm Gode Wind 1 is expected in 2016.

The parties have agreed that DONG Energy will provide operation and maintenance services to Gode Wind 2 from DONG Energy’s O&M base in Norddeich. Furthermore, the parties have agreed that DONG Energy will provide a route to market for the power production of Gode Wind 2.

Samuel Leupold, EVP in DONG Energy Wind Power said: ”We are very pleased to enter into an offshore wind partnership with PKA for the second time and at the same time welcome the other Danish pension funds, which we have not partnered with before, as co-owners to Gode Wind 2. It is integral to DONG Energy’s business model that institutional investors consider a partnership with DONG Energy an attractive investment opportunity. By 2020 we want to have tripled our installed capacity of offshore wind compared to the 2.2 GW we have built today.

Today’s agreement enables us to free up capital to continue our investment programme and thereby assists us in reaching this target.”

Peter Damgaard Jensen, CEO in PKA, said: ”Gode Wind 2 is the fourth offshore wind farm that PKA invests in and the four wind farms will provide power to more than 1.8 million households. PKA will continue investing in such projects, since they are in line with the wish for a sustainable return and our members' demand to make a positive impact on the climate.”

Laila Mortensen, CEO in Industriens Pension, said: ”We are very pleased to be a part of this consortium. By investing in this project, we will secure our members a long-term stable return on investment. At the same time it is also very satisfactory to know that we take part in creating Danish jobs and contribute to the green conversion to renewable energy.”

Henrik Walther Mogensen Head of Finance in Lærernes Pension, said: ” We are very pleased to have succeeded in joining this Danish consortium with DONG Energy who are very professional and leading within their field of expertise. In particular, we are very pleased that we are able to combine an investment in green energy with an expected sound and stable return.”

Niels Lihn Jørgensen, CEO in Lægernes Pensionskasse, said: ”We have decided to be a part of this consortium since we consider that this project will contribute with a good return on our investments to our members. The investment fits well into our existing portfolio.”

The transaction is subject to approval by the competition authorities. The transaction is expected to be completed in the second half of 2014.

The information provided in this announcement does not change DONG Energy’s previous financial guidance for the 2014 financial year or the announced expected investment level for 2014-2015.

For more information, please visit: DONG Energy

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