Sian Crampsie

Dong Energy has completed an agreement to sell 50% of the Burbo Bank Extension offshore wind farm to Danish pension firm PKA and Kirkbi A/S, parent company of the Lego Group. Both firms have taken a 25% stake in the project, construction of which will start in spring 2016, Dong said. The total purchase price amounts to £660 million.

Dong will install 32 turbines at the Burbo Bank Extension project, which will be the first large-scale wind farm to deploy the new MHI Vestas 8.0 MW turbine. Dong will provide operation and maintenance services to the Burbo Bank Extension under a long-term O&M agreement.

The investment is Kirkbi’s second major long-term investment in the renewable energy sector following its 2012 purchase of a stake in the Borkum Riffgrund 1 offshore wind farm.

PKA has invested in four other offshore wind farms. "In the spring of 2015 we blacklisted 31 coal companies, which have since lost more than 60 per cent of their value," said Peter Damgaard Jensen, PKA CEO. "In the same period, the return on our offshore wind farms has been more than seven per cent."