Copenhagen (dpa) - Norway's rich sovereign wealth fund, which is commonly referred to as the nation's oil fund, will invest in renewable energy infrastructure for the first time.
The Norwegian Government Pension Fund Global is acquiring half of the Borssele 1 & 2 offshore wind farm in the Netherlands for a sum of 1.4 billion euros (1.6 billion dollars),according to an announcement on Wednesday by the Norwegian central bank, which manages the fund.
The shares will be sold by Danish energy company Orsted, which will retain the other half and continue to operate the North Sea wind farm.
An agreement to that effect was signed on Wednesday, according to the parties, and the sale will be completed in the second or third quarter of 2021.
Orsted is considered a world leader in offshore wind energy.
The Borssele wind farm, located about 23 kilometres off the coast of the Netherlands, produces enough energy with its 94 wind turbines to supply nearly 1 million Dutch households with green electricity each year, according to Orsted.
The Norwegian Government Pension Fund Global is one of the world's largest sovereign wealth funds, worth an estimated 1.3 trillion dollars. It has investments in thousands of companies.
Parliament approved setting up the fund in 1990 to invest income from Norway's petroleum and gas sectors, so that the current wealth can benefit future generations, after Norway no longer drills for fossil fuels.