Offshore wind farms developer, Ørsted has signed an agreement to acquire 100% stake in Lincoln Clean Energy (LCE) from global infrastructure investment manager I Squared Capital for $580m.
The acquisition of LCE, a developer, owner and operator of onshore wind farms, is a part of Ørsted’s plan to invest in other renewable energy technologies to strengthen its position in renewable energy.
LCE has portfolio of 513MW recently commissioned, 300MW under construction, and more than 1.5GW of projects which are planned to be completed by 2022.
Ørsted CEO Henrik Poulsen said: “The acquisition of Lincoln Clean Energy will provide a strong growth platform in the US, which is one of Ørsted’s strategic growth markets. It is an investment case with healthy economics based on prudent assumptions about key value drivers and market developments.”
Planned to be completed by the end of 2018, the transaction is subject to approval by the US competition authorities.
Ørsted EVP Ole Kjems S∅rensen said: “With the acquisition of Lincoln Clean Energy, we acquire a sizable operating portfolio and development pipeline of high quality. We look forward to working with LCE’s highly experienced and successful team in further developing this attractive business.”
Lincoln Clean Energy CEO Declan Flanagan said: “This transaction will enhance our project execution and growth trajectory.”
Earlier this year, Ørsted has announced its plans to offload its power distribution and residential customer businesses in Denmark to focus on consolidating its position in the offshore wind industry in existing and new markets.
Separately, Ørsted has awarded a subcontract to Siemens Gamesa Renewable Energy for the supply of turbines for a 12MW offshore wind demonstrator off the coast of Virginia.
Under the contract, Siemens Gamesa will supply two units of 6-MW SWT-6.0-154 wind turbines for the Coastal Virginia Offshore Wind project founded by Dominion Energy.
Siemens Gamesa plans to manufacture the blades for the wind farm at its facility in Aalborg, Denmark, while the nacelle assemblies at its Cuxhaven plant in Germany.