Ørsted and CIP partnership to more than double Denmark's offshore wind capacity

Ørsted and CIP partnership to more than double Denmark’s offshore wind capacity

Photo source: Ørsted

Ørsted and Copenhagen Infrastructure Partners (CIP) have devised a plan to develop approximately 5.2 gigawatts of offshore wind in Denmark across four projects. The 50/50 partnership aims to work on Vikinge Banke (1.1 GW) and Jyske Banke Nord (1.1 GW) in the North Sea, and Bornholm Bassin Syd (1.5 GW) and Bornholm Basin Øst (1.5 GW) in the Baltic Sea.

Together, the projects correspond to more than double Denmark’s current installed offshore wind capacity, and they represent a key contribution to the green transformation of Denmark and Europe. The offshore wind farms will be established without support from Danish taxpayers and they will contribute significantly to growth and job creation in Denmark.

The partnership between Ørsted and CIP encompasses the development, construction, and operation of the offshore wind farms as well as the related transmission assets. The partnership envisages that the open-door projects can create a Danish Power-to-X stronghold by delivering large-scale renewable electricity as soon as possible and with a target of 2027/2028 if feasible.

The European Commission estimates that by 2030, a large double-digit billion amount of euros will be invested in Power-to-X technology, and Denmark, with its strong value chain and large offshore wind resources, is well positioned to become a centre for this industry. The partnership believes there is a large potential to use the power directly for Power-to-X, thereby potentially enabling regional centres for large-scale production of renewable hydrogen or green fuels.

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Rasmus Errboe, Head of Region Continental Europe at Ørsted, said, “Denmark has been a pioneer in offshore wind and is a front-runner in the green transformation. The four major open-door projects can help consolidate Denmark’s continued leadership position and create the foundation to kick-start the next phase of a Danish business adventure around the production of renewable hydrogen and green fuels. I’m very excited about the partnership with CIP where we combine our unique skills and knowledge to develop a substantial part of Denmark’s offshore wind resources.”

Ørsted and CIP partnership to more than double Denmark's offshore wind capacity
Photo source: Ørsted

“It’s an obvious and good idea for the most experienced Danish offshore wind developers to join forces to ensure that Denmark’s largest build-out of offshore wind takes place as efficiently as possible and with due respect for the environment and biodiversity in Danish waters. We’re proud to present our proposal together with Ørsted for how we can ensure the green energy for Denmark, which has never been more necessary, than during these times. If we succeed in completing the projects, we’ll also ensure the renewable electricity needed to give the Danish Power-to-X industry a much-needed boost, and we’re pleased with the support from the Danish pension funds and their members, who prioritise and invest in the green transition,” added Torsten Lodberg Smed, Senior Partner at Copenhagen Infrastructure Partners.

Globally, more renewable energy is urgently needed to ensure regional energy independence and fight the climate crisis. Denmark has some of the world’s best offshore wind resources and is consequently able to supply large volumes of renewable electricity for the continued decarbonisation of Denmark and Europe. Ambitious political plans have already been made to harvest Denmark’s offshore wind resources, which Ørsted and CIP fully support.

Ørsted and CIP also believe that the partnership’s large-scale offshore wind projects can, in parallel with the government tenders, contribute to further pace, value creation and innovation of Denmark’s green transition.

The partnership is subject to merger clearance, which is expected before the end of 2022.

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Author: Adnan Bajic

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