The State Pension Fund of Norway, which is the world’s largest sovereign reserve fund and the largest “oil pot” of the planet, has decided to invest in an offshore wind farm. This is reported by CNBC.
For these purposes, they intend to spend 1.375 billion euros (1.63 billion dollars). The fund, which has about $1.3 trillion under management, is preparing to buy back 50 percent of the shares of the energy company Orsted. The deal is expected to be completed in the second or third quarter of 2021, and other details have not yet been disclosed.
Borssele 1&2 power station is located in the North Sea, 93 kilometers from the coast. The company itself calls it the second largest operating offshore wind farm in the world, which “ supplies renewable energy equivalent to the annual electricity consumption of one million Dutch households.”
Earlier it became known that it is going to build another large wind farm in the North Sea and adapt it to save the planet. The energy generated there will be directed to the production of hydrogen, which is considered an environmentally friendly substitute for oil and gas.
In general, the Norwegian reserve fund is gradually abandoning investments in traditional sources of energy and fuel. The organization began to refuse to invest in oil and gas three years ago. At the end of January, it became known that the fund will completely withdraw from investments in companies that are engaged in the exploration and production of hydrocarbons. The reasons were financial losses due to the coronavirus — at the end of 2020, oil and gas companies included in the portfolio of the Norwegian reserve fund brought it a loss of $10 billion.