Norway’s $1.8 trillion sovereign wealth fund, the world’s largest, announced on Monday that it will purchase a 49% stake in two offshore wind farm projects from Germany’s RWE for $1.5 billion (1.4 billion euros).
The investment covers RWE’s Nordseecluster project in the German North Sea and the Thor project in the Danish North Sea. The total value of these two projects is estimated at $3.1 billion (2.87 billion euros).
RWE will continue to oversee the construction and operation of the wind farms, which are currently being built. The Nordseecluster will have a capacity of 1.6 gigawatts (GW), and the Thor project will have 1.1 GW. Both projects are expected to be fully operational between 2027 and 2029, and once completed, they will generate enough electricity to power more than 2.6 million homes in Germany and Denmark, according to RWE.
The deal is still subject to regulatory approvals, and the transaction is expected to be finalized by the third quarter of 2025.
Norway’s oil fund, established using profits from the country’s oil and gas sector, invests in renewable energy, real estate, and holds shares in major companies worldwide. The fund owns, on average, 1.5% of all publicly listed companies globally.
Meanwhile, RWE is cutting its capital expenditure on low-carbon energy projects by $10.8 billion (10 billion euros), citing concerns over renewable energy policies, profitability, and global risks. The company’s CEO, Markus Krebber, explained that higher interest rates, supply chain issues, and geopolitical challenges led to the decision to reduce investments and increase return expectations through 2030.
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