The NORWEGE Stability Fund has reported its first direct investment in a renewable energy project, a new asset class that plans to concentrate investment this year.
The fund and the Danish company issued separate statements stating that the world’s largest national stability fund purchased 50% of Borssele 1 and 2 offshore wind power from the Danish company Orsted at a price of 1.375 billion euros.
The agreement was signed yesterday, and the transaction is expected to be completed in the second and third quarters of this year.
Reuters reminded that Borssele is the world’s second largest wind farm on the sea.
This kind of direct investment is new to Norwegian funds and was not allowed to invest in stocks, bonds and real estate until last year.
The fund manages assets worth US$1.3 trillion. Between 2020 and 2022, approximately 100 billion Norwegian kroner (9.94 billion euros) has been allocated for investment in non-listed renewable energy projects, such as wind farms and solar power field.
He is most interested in projects in North America and Europe.
In October last year, Nicolai Tangen, the executive director of the fund, said that it was difficult for the fund to find acceptable investment because there were few projects and fierce competition.