Wind farm developer Orsted (ORSTED.CO) plans to submit a joint bid with Danish pension fund ATP to finance and build the world’s first energy island in the North Sea.

The man-made island, which will produce and store enough green energy to meet the electricity needs of 3 million European homes, was approved by Danish lawmakers in February as part of the country’s ambitious climate targets. Read more

“The energy island in the North Sea will be a cornerstone in the exploitation of Danish offshore wind resources, which can make a substantial contribution to the green transitions in Denmark and Europe and create thousands of jobs in Denmark” , Orsted said in a statement.

Orsted expects the project, which will be majority owned by the Danish state, to be auctioned next year and a decision made in 2023, a spokesperson said. The precise terms of the offer have not yet been finalized.

Covering an area of ​​18 football pitches, the initial phase of the island will be connected to hundreds of offshore wind turbines and will provide electricity to households and green hydrogen for maritime transport, aviation, l industry and heavy transport.

The energy island, which will cost around DKK 210 billion ($ 34 billion), will be located 80 km (50 miles) off the west coast of Denmark. Its surrounding wind turbines will have an initial capacity of 3 gigawatts and should be operational around 2033.

Orsted is the world’s largest developer of offshore wind farms, having installed nearly a quarter of all offshore wind capacity, while ATP is among the largest pension funds in Europe with SEK 960 billion under management.

($ 1 = 6.1806 Danish kroner)

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