Norwegian oil and gas company Equinor has acquired a stake of 9.8% valued at approximately $2.5bn in Danish renewable energy developer Ørsted.
The minority interest corresponds to about 41.2 million shares in Ørsted, making Equinor the second-largest shareholder in the clean energy company. The Denmark government, which is the largest shareholder in Ørsted, retains a controlling interest.
Ørsted is engaged in developing and operating offshore and onshore wind farms, energy storage facilities, solar farms, renewable hydrogen, and green fuels facilities, as well as bioenergy plants.
The publicly listed firm currently holds a net renewable generation capacity of about 10.4GW, with an additional 7GW of offshore wind projects under construction.
Ørsted aims to expand its gross installed renewable capacity to 35GW-38GW by the end of this decade.
Recently, Ørsted decommissioned its final coal-fired combined heat and power plant, dubbed Esbjerg, in Western Denmark.
Equinor plans to increase its ownership in Ørsted to 10%, subject to regulatory approvals under foreign direct investment (FID) regulations. In addition, Equinor stated that there are no immediate plans to raise its ownership beyond that level.
The Norwegian oil and gas company said that its stake in the Danish clean energy firm was built gradually through a combination of market purchases and a block trade.
Equinor seeks to support Ørsted’s strategy and management and is not planning for board representation.
Equinor CEO Anders Opedal said: “Equinor has a long-term perspective and will be a supportive owner in Ørsted. This is a counter-cyclical investment in a leading developer, and a premium portfolio of operating offshore wind assets.
“The exposure to producing assets complements Equinor’s operated offshore wind portfolio of large projects under development.”
Furthermore, Opedal stated that the new commitment aligns with Equinor’s strategy of value driven growth in renewables.
