Swedish pension in £237m UK offshore wind deal

The direct investment comes just two months after the pension committed £300m to the GIB’s offshore wind fund.

Swedish pension fund AMF has boosted its exposure to UK offshore wind, spending £237 million ($353 million; €326 million) to purchase a stake in the Ormonde project just two months after committing £300 million to the Green Investment Bank’s (GIB) pioneering offshore wind fund.

AMF is purchasing a 49 percent stake in the 150MW Ormonde offshore wind farm, situated 10 kilometres off Barrow-in-Furness, in north-west England, from Swedish energy company Vattenfall. The latter will continue to operate the project, which has been generating electricity since 2012. Vattenfall currently operates four wind farms in the UK. Swedish infrastructure and real estate consultancy firm Infranode advised AMF on the direct investment.

“The Ormonde wind farm investment, being sustainable with good returns, fits us very well,” said AMF head of asset management Peder Hasslev. “Conditions for offshore wind power in the UK are favourable and in combination with [Vattenfall’s] deep knowledge in the wind, we are feel confident about doing this investment,” he added.

The Swedish pension first decided to invest in UK offshore wind just two months ago, when it committed £300 million to the GIB’s offshore wind fund, also assisted by Infranode. The commitment, alongside £50 million from the UK’s Strathclyde Pension Fund, helped the vehicle clinch a second close on £818 million. The offshore wind fund is targeting £1 billion with a £1.5 billion hard-cap.