Storebrand Infrastructure Fund invests in Germany's largest planned offshore wind farm

Storebrand Infrastructure Fund is pleased to announce the acquisition of an equity stake in He Dreiht, a construction-ready 960 MW offshore wind farm in the German North Sea. Storebrands strategic infrastructure partner, AIP, has formed a consortium with Allianz Capital Partners (ACP) and Norges Bank (NBIM) acquiring 49.9% of the project. Storebrand Infrastructure Fund is investing more than NOK 1bn in the transaction.

"He Dreiht represents an attractive combination of key infrastructure characteristics and meaningful impact on the path to net zero. The wind farm is expected to produce clean energy for more than 1.1m households, and long stable cash flows provide characteristics we consider attractive in a balanced portfolio", says Head of Infrastructure, Storebrand Asset Management, Jo Gullhaugen.

When completed, He Dreiht will consist of 64 V236-15.0MW turbines supplied by Vestas. Project construction will begin in 2024, working towards a planned commercial operation date (COD) by the end of 2025, at which point it will be the largest operational offshore wind farm in Germany.

The developer and current owner of the project, the German utility company EnBW, will remain as majority owner and long-term off-taker of the produced electricity, and will also be responsible for the construction and long-term operation of the wind farm. EnBW is a strong partner with longstanding offshore wind experience in constructing and operating wind farms in Germany.

"This is yet another example of our targeted approach to infrastructure investments focusing on the energy transition. Our clients show great interest in access to long-term investments with stable returns and positive impact, and we look forward to continued growth in this part of our business", says Dagfin Norum, CIO Storebrand Asset Management.

The offshore wind farm is expected to have an annual production of about 5.3 TWh of renewable electricity, offsetting the equivalent of approximately 2.7 million tons of carbon dioxide.

"As the recent UN IPCC report has noted, the world urgently needs investment in efforts to respond to the climate challenge at speed and scale. We'll continue to focus on projects such as this, with projected significant climate impact and stable long-term returns. In Europe alone, according to McKinsey, USD 28 trillion of investment will be needed to reach net zero emissions", Gullhaugen adds.

Image 1: Bau Offshore Windpark Baltic
Image 2: Jo Gullhaugen

ABOUT STOREBRAND INFRASTRUCTURE FUND
Storebrand Infrastructure Fund is a NOK 10bn fund offering investors an opportunity to invest, alongside Storebrand, in sustainable infrastructure assets. The fund has made eight investments to date, within key infrastructure sectors such as on- and offshore wind, solar, district heating and electric transport. The fund works closely with selected strategic partners such as AIP.

ABOUT AIP MANAGEMENT
AIP is an investment manager, partly owned by Storebrand, dedicated to infrastructure investing and management of infrastructure assets supporting the energy transition in Europe and North America.

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