Norges Bank Acquires £330 Million Stake in Race Bank Offshore Wind Farm

Image Credit: Ørsted

Norges Bank Investment Management (NBIM), the investment division of Norway's central bank, has secured a 37.5% share in the 573MW Race Bank offshore wind farm, located off England's east coast, in a transaction valued at £330 million. The deal was struck with Macquarie Asset Management and Spring Infrastructure Capital.

Situated approximately 27 kilometers from the Norfolk coastline, the wind farm features 91 turbines, each with a 6.3MW capacity. Collectively, they produce sufficient electricity to power 510,000 UK households annually.

A consortium led by Macquarie initially acquired half of the Race Bank project during its construction in 2016 and later sold a 25% stake in 2017. This latest agreement facilitates the complete exit of Macquarie and Spring Infrastructure Capital from the project. Macquarie is divesting its remaining stake, and Spring Infrastructure Capital is selling its 12.5% share.

Despite these changes, clean energy firm Ørsted holds a 50% stake in the wind farm, which began operations in 2018. Arjun Infrastructure Partners will also maintain its 12.5% co-investment.

NBIM's acquisition includes a portion of the project's debt, with an outstanding balance of about £644 million attributable to its stake.

Jonathan Duffy, managing director at Macquarie Asset Management Green Investments, reflected on the firm's involvement with Race Bank from its inception to its operational status, stating it was "a great journey."

"With Race Bank now producing electricity for more than half a million UK homes, it has become a significant contributor to the ongoing decarbonisation of the UK's electricity system," he added.

Macquarie remains invested in several other offshore wind projects across the UK, such as Gwynt y Môr and East Anglia One, among others. They are also backing several upcoming developments, including the 2GW West of Orkney and the 353MW Five Estuaries projects.

The divestiture from Race Bank was executed through Macquarie's European Infrastructure Fund 5 and the Spring Infrastructure 1 Investment Limited Partnership, managed by Spring Infrastructure Capital Co. Ltd.