Norwegian investment for Hornsea 3 windfarm

The financing is based on the purchase of two transformer platforms from Norway’s Aibel for the Hornsea 3 offshore windfarm project in the UK. The transaction increases Eksfin’s total offshore wind financing to nearly €3.5 bn.

”Our cooperation with leading offshore wind developers is vital for the Norwegian offshore wind cluster. This latest transaction strengthens the relationship between Ørsted and Norwegian exporters and helps create opportunities for future co-operation,” said Tone Lunde Bakker, managing director, Eksfin.

Capital intensive

”The support by Eksfin and similar institutions plays a very important role in the green energy transition given the capital intensity of the sector,” said Rasmus Errboe, Interim CFO, Ørsted.

Partnering with banks, Eksfin offers state-backed loans and guarantees directly to developers based on the purchase of equipment and services from Norway. The financing for Ørsted, together with last year’s €45mn financing for Spanish energy companyt Iberdrola, falls into this category.

Offshore wind is currently the main driver for the Norwegian supply industry’s strong growth in renewables. Norwegian companies specialise in platform construction, cable laying and maritime installations and have secured major export contracts.

In 2022, the Norwegian offshore wind industry had an international market share of 7.5%. The Norwegian government’s target for the Norwegian offshore wind industry is a world-wide market share of 10% by 2030.

Ørsted currently manages 12 wind farms in the UK, it secured attractive CfDs for Hornsea 3 with a duration of 15 years.

Hornsea 3, situated off the Norfolk/South Yorkshire coast, will be the world’s single largest wind farm. It is expected to generate a minimum of 2.9 GW of electricity when in operation in 2027, enough to supply around three million homes with clean energy. It will be Ørsted’s third gigawatt-scale project in the Hornsea zone following Hornsea 1 (1.2 GW) and Hornsea 2 (1.3 GW), which are already in operation.

The UK government’s ambition is to have 50 GW of offshore wind in operation by 2030 and to be net zero by 2050, requiring a total of between 65 and 125 GW of installed renewable power.

This makes it a key market for Norwegian offshore wind suppliers going forward and by default, for Eksfin.