Danish scheme PKA and LEGO Group invest DKK6.6bn in UK wind park

PKA says its four other offshore wind investments are generating good returns.

The DKK235bn (€31.5bn) Danish pension scheme PKA has made its fifth investment in an offshore wind park, teaming up with the LEGO Group to acquire half of a 256MW park to be built in the Irish Sea for DKK6.6bn. The wind park is called Burbo Bank Extension and it is being developed by Danish energy firm DONG. Completion is slated for the first half of 2017, after which the park will supply 230,000 British households with clean power. Located west of Liverpool in the Irish Sea, Burbo Bank consists of 32 turbines with a capacity of 8MW each.
Including the latest deal, PKA, which manages the assets of five Danish health care and social services schemes, has allocated more than DKK9bn to offshore wind energy. Its other four investments in the space include Anholt, a 400MW facility in Denmark’s Kattegat Sea; German offshore parks Gode Wind 2 and Butendiek (252MW and 288MW, respectively); and Gemini, a 600MW Dutch installation.
“In the spring of 2015, we blacklisted 31 coal companies, which since have lost more than 60% of their value. In the same period, the return on ouroffshore wind farms has been more than 7%,” said PKA CEO Peter Damgaard Jensen, adding: “We are proud to provide good returns to the pension savers while making a positive difference.” For Danish toymaker LEGO Group Burbo Bank marks its second investment in offshore wind. Its first was a 277MW German park called Borkum Riffgrund 1. By 2020, LEGO aims to offset the carbon dioxide (CO2) emissions from its operations via the CO2 saved by its renewable investments.
Under the terms of the deal, DONG will operate Burbo Bank and be responsible for the sale of power relative to PKA and LEGO’s 50% stake in the park. Said DONG CEO Henrik Poulsen: “I am delighted to welcome the LEGO Group and PKA to a new partnership. Both of them are already trusted partners in other DONG Energy offshore wind projects and we are proud to be build on our relationship.” Indeed, DONG was the project developer for the Borkum, Gode Wind 2 and Anholt wind parks.