Vestas has entered into an arrangement with the investment management firm Copenhagen Infrastructure Partners (CIP), whereby Vestas will obtain a 25 percent minority interest in the parent companies of CIP.
The stake will be purchased at a price of €500 million, in the form of an upfront payment of €180 million and a earnout of €320 million.
The transaction is expected to be completed in the first quarter of 2021.
Via its investment in CIP, Vestas aims to further extend its involvement in the production of renewable projects and to invest in areas of the value chain of renewables outside its current activities.
This will see Vestas creating a new road to value development, which will provide access to long-term returns from renewable energy projects.
This value stream would encompass investment management and optimisation, including asset management and divestment, thereby increasing Vestas’ position across the energy value chain beyond existing co-development and early-stage investment in renewable projects.
Investment is also a key milestone in Vesta’s overall growth direction, including an increased focus on development through the introduction of a new dedicated business development unit.
CIP’s business model focuses primarily on raising long-term institutional capital and nurturing and de-risking large-scale complex energy infrastructure projects, from project origination, investment selection, to construction and asset management.
Vestas and CIP will partner on some projects in the early stages of the development cycle, but Vestas will not give CIP any more preferential treatment as a customer in relation to Vestas’ development pipelineand/or turbine sales.
“The global transition towards a decarbonised energy system demands increased deployment of renewable energy, and more extensive supportive infrastructure. As a leader in sustainable energy solutions, Vestas is determined to play a role in driving this transformation, but to do so, we must increase our involvement across the renewable value chain and benefit from value creation across technology providers, developers, and owners. Our investment in Copenhagen Infrastructure Partners enable us to achieve both goals, and to maximise the market potential signalled by our new development business unit. I’m therefore very excited to begin this new journey with a global leader like CIP.“Henrik Andersen, group president and CEO of Vestas.
“I am looking forward to Vestas being part of the board of CIP. CIP and Vestas have a shared vision for the renewable energy market providing common ground for the strategic direction of CIP, which will continue to create innovative and attractive investment products for investors with a significant contribution to the global climate agenda.“Jakob Baruël Poulsen, CIP managing partner.
As part of the deal, Vestas will invest in a new ‘Energy Transition Fund’ operated by CIP as an anchor investor. The Fund will concentrate on the development of Power-to-X and other technologies that can further accelerate the deployment of renewable energy through energy systems.
Via representation on the CIP Board, Vestas will participate in discussions on the strategic direction of CIP, but will not be involved in decision-making at the fund, investment or project level, including the selection of suppliers of wind turbines. Vestas will maintain the ability to partner with other stakeholders on construction projects, including other developers, utilities and owners of wind energy.