Vestas invests to expand renewable value chain
AARHUS, December 22, 2020 Vestas has acquire a 25 per cent minority stake in Copenhagen Infrastructure Partners, (CIP), the world’s largest dedicated fund manager in greenfield renewable energy infrastructure. With the investment, Vestas seeks to create value across a wider range of the renewable value chain. Vestas will acquire the ownership stake at a price of €500 million, in the form of €180 million as upfront payment, and €320 million as an earnout. The current value of CIP’s Assets under Management (AUM) is estimated to around €14 billion, which the company aims at increasing to €75-100 billion by 2030.
Vestas inks $600 million partnership with Copenhagen Infrastructure Partners
The investment would propel project development from the world’s largest wind turbine marker. PUBLISHED BY
The Danish clean energy company Vestas is investing $609 million (€500 million) in a new tie-up with fund manager Copenhagen Infrastructure Partners (CIP). The investment would propel project development from the world’s largest wind turbine marker.
President and chief executive officer Henrik Andersen said the partnership would help Vestas work across the value chain of clean energy by expanding its project development business, which ranges from permitting, design, construction and operation of wind farms.
Vestas is the world’s largest manufacturer of wind turbines. In the past two years, the company’s revenues have grown by 50 percent due to the growing demand for wind turbines and maintenance services.
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Copenhagen Infrastructure Partners (CIP), a fund manager within greenfield renewable energy infrastructure investments, has entered into an agreement with Vestas, whereby Vestas will acquire a 25% minority stake in CIP. The transaction proceeds will be committed to re-investments into CIP and new funds over the years to come to accelerate growth and innovation and increase co-investments in the renewable energy sector.
Over the past decade, the renewable energy market has seen tremendous growth driven by major technological advancements reducing the cost of green energy. In the coming decades, growth in renewable power generation will accelerate as major economies put the climate challenge on top of the agenda, with ambitious targets for reduction of carbon emissions.
Vestas, the world’s largest maker of wind turbines, has taken a 25 percent stake in the renewable asset manager Copenhagen Infrastructure Partners (CIP).
The €500 million ($612 million) deal will include an upfront payment of €180 million, followed by €320 million as a performance-based earn-out.
CIP runs seven funds, with a total of €14 billion under management. That portfolio represents 20 major, large-scale projects with 8 gigawatts of capacity. Another 20 greenfield projects will close finance in the next three years, according to CIP.
Vestas said the deal would enable it to “further expand its presence in renewable project development” including across other renewable technologies.
CIP has stakes in onshore and offshore wind projects as well as solar, energy storage, transmission and waste-to-energy projects. It has a 35 percent stake in the Beatrice offshore wind farm in the U.K. The 588 MW operational project was awarded a contract for difference, guarantee
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