The three partners behind Denmark鈥檚 鈥渆nergy island鈥� project to build a physical base for large-scale wind-power production in the North Sea today announced a cooperation pact with mortgage-bond specialist Nykredit to probe financing options.
A consortium of PensionDanmark, PFA and the energy and fibre optic network firm Andel - known as SEAS-NVE before last August - agreed in May 2020 to finance and operate a planned energy island called 鈥淰ind脴鈥� (wind island), which is to be the base for up to 10GW of offshore wind turbines.
The renewables initiative is part of a government plan to realise the concept of a single structure in the sea, rather than individual offshore wind farms, which would be connected to several countries鈥� electricity grids as well as to surrounding offshore wind farms.
The idea is for the energy islands to be established without state funding.
Torben M枚ger Pedersen, chief executive officer of PensionDanmark, said: 鈥淲e in the Vind脴 consortium are really pleased that Nykredit is now joining the collaboration on the energy island in the North Sea.鈥�
This was partly because as a mutual company, Nykredit fit in well with the Vind脴 team, he said, and partly because it enabled the consortium to secure a comprehensive Danish financing solution for the 鈥渨orld鈥檚 first energy island鈥�.
PensionDanmark said Nykredit was expected to contribute to the planning of the capital and financing structure behind the project, as well as providing a significant part of the debt capital based on the issuance of mortgage bonds - which the pension fund said suited the Vind脴 consortium鈥檚 long-term investment horizon.
Michael Rasmussen, Nykredit鈥檚 CEO, said Denmark was to be a 鈥済reen pioneer鈥� in the future too.
鈥淪o we have a strong desire to bring our competencies into play and show the world how with unique Danish mortgage financing can support the development of the world鈥檚 first energy island,鈥� he said.
The consortium has said it will initially invest up to DKK400m (鈧�34m) to develop the project.
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