Ørsted has returned to the European onshore renewable energy business with an agreement to acquire a developer with a 1 GW plus onshore wind pipeline in the UK and Ireland.

The Danish company has agreed to buy a 100% stake in Brookfield Renewable’s existing onshore wind business in Ireland and the UK, Brookfield Renewable Ireland (BRI).

BRI has 389 MW of onshore wind farms under construction or in operation in Ireland and the UK, 149 MW in advanced development, and an additional 1 GW-plus in various stages of development.

The transaction is based on an enterprise value of 571 million euros as of December 31, 2020. However, the final price will be subject to customary adjustments.

It is expected to close in the second quarter of 2021.

CEO of Ørsted Mads Nipper said: “The European onshore wind energy market is expected to grow significantly in the coming years, and with the acquisition of BRI we get a strong platform that expands our presence in onshore renewables. to Europe, allowing us to continue our success, expanding our onshore renewable energy business. “

Ørsted (then Dong Energy) ended its involvement in onshore wind with the sale of two definitive stakes – shares in a Swedish wind farm and a Norwegian project development company – in 2014.

However, it returned to the onshore renewable energy business in 2018, with an initial focus on the United States. It now has 4 GW of onshore wind and solar projects in operation and under construction.

Earlier this week, CEO Nipper told Danish business newspaper Børsen that the developer was looking to reintroduce European onshore renewables.

Declan Flanagan, CEO of Ørsted’s onshore business unit added: “The Irish and UK onshore markets offer attractive fundamentals, large-scale projects and value creation through a mix of development projects and opportunities of revitalization.

“In addition, we can leverage the BRI team’s industry-leading direct debit capabilities under share purchase agreements and corporate purchase agreements with direct synergies with Ørsted’s existing efforts. UK.”

BRI’s existing management team will continue to manage the business, which will be integrated into Ørsted’s onshore business unit over time.