Copenhagen Infrastructure Partners (CIP), on behalf of its fund Copenhagen Infrastructure IV K/S (CI IV), has acquired 50% of Statkraft A/S’s offshore wind portfolio in Ireland. Norwegian based Statkraft A/S, a European generator of renewable energy, is a leading developer and operator in Ireland. The financial terms of the transaction are not disclosed.
The acquired portfolio, with an expected capacity of 2.2GW, includes four early to mid-stage offshore wind development projects off Ireland’s east and southeast coast in the Irish Sea. The projects involved are the North Irish Sea Array, or NISA, and the Bore Array with a combination of fixed bottom and floating offshore foundations. Ireland has distinct geographical advantages for offshore wind development with some of the highest average wind speeds in Europe and a vast maritime area.
The Irish Government has set a 2030 target of 7GW of installed offshore wind requiring rapid deployment and delivery of the currently most mature development projects, which includes the 500MW flagship project in the portfolio, North Irish Sea Array I (NISA I). NISA I is eligible to bid into the Irish Government’s first Offshore Renewable Electricity Support Scheme auction (ORESS) in 2023.
The projects are expected to be among the first commercial scale offshore wind projects in Ireland with commercial operations expected to commence in 2028. Statkraft and CIP expect to invest more than 4 billion EUR in the market before 2030.
The Statkraft and CIP partnership enables Statkraft’s long standing local presence in Ireland and CIP’s international offshore wind investment, development and construction experience to be fully utilized through a combination of an integrated organization in Ireland and CIP’s central teams. As the exclusive offshore wind development partner to CIP, Copenhagen Offshore Partners will co-lead project development activities.
Nischal Agarwal, Partner in CIP says: “We are very pleased to be entering the Irish offshore market and look forward to developing these exciting projects together with Statkraft. In combining CIP’s industrial background and international experience within offshore wind with Statkraft’s experience of Irish renewables the partnership will enable the provision of renewable power to Irish homes and businesses and contribute to reaching the governments ambitious decarbonization targets.”
Kevin O’Donovan, MD of Statkraft Ireland, said: “This partnership brings together two industry heavyweights with the resources and expertise to harness the power of our offshore wind. While today’s deal is significant for Statkraft, it also signals a giant leap forward for the country. The clean energy we can deliver from these projects will not only power our own homes and businesses; it also has the potential to make Ireland a world leader in renewable energy exports.”
Completion of the transaction is subject to certain statutory approvals.