Legal & General is providing finance to a pension fund consortium for what will be the world’s largest offshore wind farm off the coast of the UK.
The money forms part of the £2 billion (€2.2 billion) acquisition capital for Danish pension funds PKA, which provides pensions to Danish economists in the pharmaceuticals sector, and PFA, the country’s largest commercial pensions provider.
The funds are to buy 50% of the Walney Extension, a wind farm in the Irish Sea, from Ørsted.
LGIM Real Assets is also an investor and the acquisition represents insurer Legal & General’s first debt investment into the UK offshore wind sector.
Walney Extension is currently under construction and will have a capacity of 660 megawatts, providing enough power for over 590,000 homes.
Situated about 19km west of the Walney Island coast in Cumbria, around £1 million per month was contributed to the local economy during the construction of previous parts of the wind farm, Walney I and II. It is also estimated the Walney Extension Project, Ørsted could support up to 185 full-time jobs annually throughout the estimated 25-year operational lifespan.
Charles-Henry Lecointe, senior investment manager, LGIM Real Assets, said: “We have a strong appetite for future investments into this sector as well as other renewable sectors, recognising the importance the offshore wind industry can have for providing clean energy and stimulating job growth in the UK.”
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