DONG Energy is selling 50% of the Borkum Riffgrund 1 offshore wind farm to the Lego Group's parent company, KIRKBI A/S, and the Oticon Foundation, for DKK4.7 billion.
When completed Borkum Riffgrund 1 will consist of 77 3.6 MW offshore wind turbines from Siemens. Construction is expected to commence in 2013, and first power is expected to be generated in 2014.
KIRKBI participates in the buying consortium with an investment of DKK3bn, giving it an ownership interest of 32% in the offshore wind farm. The Oticon Foundation will invest DKK1.7bn, giving it an ownership interest of 18%.
"The agreement is a major step forward for DONG Energy's partnership model for financing offshore wind farms. The market for offshore wind has seen strong growth in recent years because a number of countries wish to switch to green energy. This has led to a great need for external capital, and I am therefore pleased that we are also able to attract capital from privately owned companies and industry," says Anders Eldrup, CEO of DONG Energy.
DONG Energy will construct Borkum Riffgrund 1 offshore wind farm and KIRKBI and the Oticon Foundation expect to take over the completed offshore wind farm and the earnings that come with their ownership interests on 1 October 2015. Until that date, production will primarily accrue to DONG Energy. Furthermore, DONG Energy has signed a 15-year contract with KIRKBI A/S and William Demant Invest on operation and planned maintenance of the offshore wind farm.
Green goals for Lego
The Lego Group aims to generate enough renewable energy capacity to meet 100% of its energy needs by 2020. With the investment in the project, the Lego Group will be able to meet its target as the wind farm is expected to produce more electricity than the company's total electricity consumption up to and including 2020.
"One of our fundamental values is that we want to help enable future generations of children to grow up in a better world. We do that first and foremost through our play materials – but also by improving the safety of our employees, improving the energy efficiency of our production, and reducing the volume of waste. In the field of renewable energy our objective is an ambitious one – and I am very pleased at this time to be able to announce this investment," says Jørgen Vig Knudstorp, Lego Group CEO.
