Orsted and ATP Team Up to Bid on World's First "Energy Island"
The world's biggest offshore wind farm developer, Orsted, has announced plans to bid on a tender for the world's first energy island – a manmade receiving station for offshore wind power in the North Sea. For this project, they've partnered up with Danish pension giant ATP for financing construction.
In February, Danish lawmakers approved the proposed artificial island, which is a priority for Orsted’s wind farm development plans. Once completed, it could receive, process and transfer enough green energy to cover the electricity needs of three million European households.
Denmark has an ambitious climate target, and this project is expected to play a big role in achieving it. In a statement, Orsted said, "The North Sea energy island will be a cornerstone in harnessing the Danish offshore wind resources, which can make a substantial contribution towards Denmark's and Europe's green transitions and create thousands of jobs in Denmark."
The Danish government is set to serve as a majority stakeholder in the project, and Orsted expects the contract to be put out to tender in 2022. The government is expected to select a bidder by 2023.
The first phase of the project, which will be linked to hundreds of offshore wind turbines, will be able to produce green hydrogen fuel that can be used by the aviation, shipping, and logistics industries. Located about 50 miles off Denmark’s west coast, the project is projected to cost about $34 billion.
"The North Sea energy island is a very interesting investment case for ATP, because it can contribute to good and stable pensions and develop Danish industrial positions of strength while also being a decisive lever for the green transition in Denmark,” said Bo Foged, CEO of ATP.