Octopus Energy Partners with Deep Wind Offshore to Enter Norwegian Offshore Wind Market
Posted 07/09/2023 13:04
Octopus Energy is making its entry into the Norwegian offshore wind market through a partnership with Deep Wind Offshore, a Norwegian offshore wind developer. As part of this collaboration, Octopus Energy will become a co-owner of Deep Wind Offshore alongside existing industrial owners Knutsen OAS, Haugaland Kraft, and Sunnhordland Kraftlag.
Deep Wind Offshore, founded in January 2021 in Norway, has an ambitious pipeline of offshore wind projects located in Norway, Sweden, and South Korea. The company aims to construct 10 gigawatts (GW) of new offshore wind capacity by 2032, with 2 GW under exclusive development in South Korea. Octopus Energy's investment is expected to expedite the growth of Deep Wind Offshore and facilitate the development of both fixed and floating offshore wind farms, expanding into new markets as well.
The investment made by Octopus Energy is funded entirely by UK pension capital, as the majority of Octopus's managed funds originate from large UK pension funds and institutional investors. This partnership aligns with Octopus Energy's recent announcement of dedicating $20 billion in investments to offshore wind projects worldwide.
Deep Wind Offshore's CEO, Knut Vassbotn, emphasized that Octopus's support and expertise would enable the company to accelerate its international growth while strengthening its position in Norway. The collaboration will not only increase the supply of renewable energy but also lay the foundation for future growth on both sides of the North Sea, thanks to investments from Octopus and its connection with Norwegian municipalities.
Octopus Energy Generation will extend its project portfolio to 15 countries through this partnership, marking its entry into Norway and South Korea's renewable energy markets. This expansion comes in response to the substantial growth potential of the offshore wind sector, which is projected to be worth $1 trillion by 2030 and encompass at least 24 markets, according to Wood Mackenzie.
Zoisa North-Bond, CEO of Octopus Energy Generation, commented on the significance of offshore wind's potential, emphasizing that greater global adoption of offshore wind farms would lead to reduced energy costs and a more secure energy system.
Octopus Energy already has investments in various offshore wind projects, including the Lincs offshore wind farm, Hornsea One in England (one of the world's largest wind farms), and the innovative Borselle V wind farm in the Netherlands. Additionally, they are investing in Simply Blue, a floating offshore wind developer.