GLIL Infrastructure and Octopus Energy Generation have established a joint venture to invest £400m in acquiring a 12.5% stake in Hornsea One, the world’s largest operational offshore wind farm.
GLIL and Octopus are each investing £200m in the venture, with Octopus confirming that the deal has been signed and completion is scheduled for October 2022.
Hornsea One, located off the Yorkshire coast, has 174 wind turbines and can generate enough energy to power more than one million homes. It is run by Danish energy company Ørsted, which retains a 50% stake.
This is the first offshore wind investment by GLIL, which invests in infrastructure projects and is supported by a number of UK Local Government Pension Scheme funds, including Greater Manchester, Merseyside, West Yorkshire and Lancashire.
Daniel Hobson, GLIL Infrastructure investment director and Greater Manchester Pension Fund head of real assets, said: “Offshore wind capacity plays a major role in the generation of renewable energy, so the potential of what is being developed here is vast.
“Our investment will not only support the UK’s energy transition and net-zero ambitions, and continue our track record in the renewable energy sector, it will also generate sustainable, long-term returns for millions of pension fund members.”
Octopus Energy Generation is a major investor in renewable energy assets in Europe and manages over £4.2bn of assets, including wind and solar farms. The Octopus investment is on behalf of Nest, the UK government-established workplace pension provider.
Alex Brierley, co-head of Octopus Energy Generation’s fund management team, said: “This latest deal is testament to the huge demand we’re seeing from institutional investors to invest in renewable energy, helping pension savers’ money make a truly positive impact on people and the planet.”
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