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Japanese groups, IKEA-linked investor win initially Norway overseas wind tender

Norway has actually awarded its North Sea wind farm licence to a group comprised of IKEA store Owner Ingka and a Japanese power joint endeavor, with the electrical power production anticipated in 2030, the energy ministry and companies said on Wednesday.

The federal government hopes the auction for the right to build 1.5 gigawatts (GW) of capacity in the North Sea utilizing bottom-fixed wind turbines will be the beginning point for enormous overseas power developments in the years leading up to 2040.

This is a milestone for the federal government's offshore wind ambition, Energy Minister Terje Aasland told a press conference.

The winners of the three-day Soerlige Nordsjoe II tender, bidding as Ventyr group, beat a joint rival deal from Norway's. Equinor and Germany's RWE, the only other. group to bid among the five groups that were pre-qualified.

This accomplishment highlights our dedication to driving. favorable modification through renewable resource development, Ventyr. job supervisor Jorne Bluekens said in a declaration.

Norway is aiming for 30 GW of set up offshore wind. capability by 2040 as it looks for to move far from fossil fuels to. cut greenhouse gas emissions.

Equinor shares rose after the tender announcement - an indication. that some financiers feared Norway's greatest business might wind up. investing excessive on tasks less successful than its oil and. gas organization and were eliminated it did not win.

But Equinor will continue to pursue other offshore wind. alternatives in Norway, a senior executive said.

We took part in the auction with the goal of winning at. a cost level where we might develop a great and successful. offshore wind task, Equinor Executive Vice President Paal. Eitrheim stated in a statement to .

Now the outcome of the auction shows that another gamer has. a lower quote than us, and we must accept that, he included.

Ingka Group, the owner of many IKEA stores, owns 49% of. Ventyr, with the rest controlled by Parkwind, bulk owned by. Japan's Jera, a 50-50 joint venture in between a system of Tokyo. Electric Power Business (TEPCO) and Chubu Electric Power .

Ventyr stated the very first turbines are anticipated to be. functional in 2030 however did not elaborate on how long it would. take to complete the wind farm. It decreased to say how much it. would cost.

The descending-bids auction led to a subsidy for the. winner of 1.15 crown ($ 0.1076) per kilowatt hour of electricity. under a 15-year agreement for difference (CfD) topped in advance. at a total of 23 billion crowns.

Germany's Energie Baden-Wurttemberg had taken out of the. process ahead of the auction. The remaining groups that did not. quote were a consortium of Aker Offshore Wind, BP and. Statkraft and a joint job by Shell, Lyse and Eviny.

Aasland stated Ventyr's owners had actually formed a solid group with. necessary funds and proficiency.

The IKEA household group is a crucial source of funding and has. a sustainability method they wish to carry out. And Parkwind,. which was gotten by Japanese owners, has broad experience with. ocean wind and other power projects, Aasland stated.

Ingka Group's financial investment arm has actually spent greatly on wind and. solar energy recently and intends to reach 6.5 billion euros. in such investments by 2030, to produce 15 terawatt hours of. energy.?

We are really happy to continue our financial investments in. renewable energy and support the wider transition towards. net-zero, Ingka Investments Managing Director Peter van der. Poel told .

Ingka is involved also in other wind tasks offshore. Norway. It last year signed up with a consortium that aims to bid for. the development of the planned Utsira Nord floating wind farm.

(source: Reuters)