Dong Energy Plans More Offshore Wind Farm Stake Sales

Dong Energy A/S, Denmark’s state- controlled utility, plans to sell more stakes in its offshore wind farms after completing five sales already, Deputy Chief Executive Officer Morten Buchgreitz said.

As Dong Energy seeks to invest in new wind parks at sea, it also is planning to sell stakes in existing developments to help fund them, Buchgreitz said in an interview at the European Wind Energy Association conference in Copenhagen.

Dong Energy intends to spend 10 billion kroner ($1.8 billion) a year on offshore wind power, and expects new projects in Denmark as the nation moves to de-carbonize the power sector, the deputy chief said. The utility has sold five offshore wind farm stakes, most recently to Kirkbi A/S, parent company of Lego Group, and the Oticon Foundation.

“You haven’t seen the last sale from Dong Energy of stakes in a wind farm,” Buchgreitz said. “We have an ongoing dialogue with a number of investors, both current and new investors in the offshore wind industry.”

Kirkbi and Oticon in February agreed to pay 4.7 billion kroner for 50 percent of an unbuilt German offshore wind farm, with Dong Energy retaining the construction risk. Marubeni Corp. (8002) in September became the first Japanese company to invest in an offshore wind project, agreeing to pay 200 million pounds ($324 million) for 49.9 percent of a U.K. park owned by Dong.

“There’s quite a large interest to invest in offshore wind farms in general, but also from the Japanese,” Buchgreitz said. “When the next one is going to happen, I cannot say.”

Dong Energy prefers to share the risk rather than owning its offshore wind farms fully, Buchgreitz said. Sizeable offshore wind farms it still owns entirely include the 209- megawatt Horns Rev 2 off the Danish coast and the 90-megawatt Burbo Bank project off the U.K.

To contact the reporters on this story: Alex Morales in Copenhagen via amorales2@bloomberg.net; Gelu Sulugiuc in Copenhagen at gsulugiuc@bloomberg.net

To contact the editor responsible for this story: Reed Landberg via landberg@bloomberg.net.

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