Octopus invests £200m into Hornsea One Wind Farm on behalf of Nest

Octopus Energy Group, on behalf of Nest, has announced the investment of £200m in the Hornsea One Offshore Wind Farm, with the goal of "making a positive impact" with UK pension savers’ money.

Through a joint venture with GLIL Infrastructure, which are also investing £200m, together they have acquired a 12.5 per cent stake from Global Infrastructure Partners for a total of £400m.

The 1.2 GW Hornsea One wind farm is located off the Yorkshire coast and generates power for over a million homes. It is operated by Ørsted and has been operational since 2020.

Octopus entered the offshore wind sector recently and this deal marks its third investment, following investments in Lincs Offshore Wind farm in England on behalf of Octopus Renewables Infrastructure Trust (ORIT), the Borssele V Offshore Wind Farm in the Netherlands, and in floating offshore wind developer Simply Blue, with more in the pipeline.

Nest and Octopus have worked together since last year when Nest appointed the entech business to help it invest billions in green energy on behalf of Nest’s 11 million pension savers.

Nest head of private markets, Stephen O’Neill, commented: “Renewable energy sources have huge potential for long-term investors like Nest. Its desirability should only increase in the coming years and as the UK accelerates towards net-zero, we’re confident Hornsea One will deliver inflation beating returns and grow the money our members have invested.

“I’d like to thank Octopus Energy Generation and GLIL for helping us access this deal. It’s a fantastic opportunity and exactly the type of investment we want to be involved in.”

Octopus Energy Generation CEO, Zoisa North-Bond, added: “The UK is already a world leader in offshore wind but there is still so much more we can do. Harnessing the UK’s strong wind resources out at sea will help provide energy security and bring down energy bills.

“We’ve already made a splash in offshore wind after only entering this renewable technology earlier this year, and we have lots more coming up.”

Additionally, GLIL Infrastructure investment director, Daniel Hobson, stated his belief that, since wind capacity “plays a major role” in the generation of renewable energy, the potential of the deal is vast.

Hobson added that the investment will be able to support the UK’s energy transition and net-zero ambitions and generate sustainable, long-term returns for millions of pension fund members.

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