Ørsted Raises EUR 7.98 Billion In Oversubscribed Rights Issue
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Ørsted has completed its rights issue, raising DKK 59.56 billion (approximately EUR 7.98 billion) with a subscription rate of approximately 99.3 per cent, the company said on 6 October.
These two introductory paragraphs add more details.
Existing shareholders were offered new shares at DKK 66.60 (EUR 8.92) each. The demand for shares not taken up via the rights issue was “extraordinarily high,” according to the developer’s announcement of the Rights Issue results, and allocations were capped per application, meaning no subscriptions were required under the underwriting bank syndicate.
As reported in August, the company appointed a syndicate of BNP PARIBAS, Danske Bank A/S and J.P. Morgan SE as Joint Global Coordinators, next to Morgan Stanley & Co International, to jointly underwrite the rights issue for the approximately 49.9 per cent that would not be subscribed to by Ørsted’s majority shareholder, the Danish state (50.1 per cent).
I dread to think what spiteful punishment that Trumpkopf will inflict on Ørsted.
But the oversubscribed Rights Issue may be good news for the UK.
Ørsted has only one major project under development or construction in the UK.
But it is the large Hornsea Three wind farm, which has this opening paragraph on its web site.
Hornsea 3 Offshore Wind Farm will deliver enough green energy to power more than 3 million UK homes. An £8.5 billion infrastructure project, Hornsea 3 will make a significant contribution toward UK energy security, as well as the local and national economy.
Note.
- Ørsted are raising £7.98 billion and spending £8.5 billion, which must do something for the UK’s economy.
- Hornsea 3 will have a generating capacity of 2.9 GW.
- Ørsted are now delivering the world’s single largest offshore wind farm.
- Hornsea 3 will connect to the National Grid at Swardestone in Norfolk.
In Grid Powers Up With One Of Europe’s Biggest Battery Storage Sites, I describe how the 300 MW/600 MWh Swardestone BESS will be built, where Hornsea 3 connects to the grid.
As Swardestone will have 2.9 GW from Hornsea 3 and a powerful battery, I would expect someone will be looking to site a data centre or something with a need for a lot of stable electricity at or near Swardestone.
In Opportunity For Communities To Have Their Say On National Grid Proposals For Norwich To Tilbury Project, I talk about a line of pylons between Swardestone and Tilbury and show this map of the route.
This page on the National Grid web site has an interactive version of this map.
Note.
- The mauve line indicates the route of the Norwich to Tilbury project.
- Swardestone is at the Northern end of the project a few miles South of Norwich.
- Tilbury is at the Southern end of the project on the Thames estuary.
- The project connects Norwich, Ipswich, Colchester and Chelmsford to Hornsea 3 at Swardestone.
- I suspect the project will connect to Ipswich at the Bramford substation.
- The Sizewell nuclear site is to the North-East of Woodbridge and connects to the grid at the Bramford substation.
I know East Anglia well and I would suspect that Norwich, Ipswich, Colchester, Chelmsford and Southend-on-Sea could support one or more data centres.
Conclusion
I asked Google AI, who owns Hornsea 1 and received this reply.
Hornsea 1 is owned by a partnership including Ørsted, Equitix, TRIG, GLIL, Octopus, and Brookfield, with Ørsted also providing the operational management. A 2018 agreement between Ørsted and Global Infrastructure Partners (GIP) originally established the 50/50 joint venture for the project.
I then asked Google AI, who owns Hornsea 2 and received this reply.
The ownership of the Hornsea 2 wind farm is shared between several entities, including a 37.55% stake held by Ørsted, a 25% stake each by AXA IM Alts and Crédit Agricole Assurances, and a 12.45% stake held by Brookfield. The wind farm is located offshore in the UK’s North Sea, approximately 89 km off the Yorkshire coast.
In November 2019, I also wrote World’s Largest Wind Farm Attracts Huge Backing From Insurance Giant.
It does seem to me that Ørsted are past masters of developing a wind farm, then selling it on and using that money to develop the next wind farm.
The Rights Issue just makes that process easier.
Ørsted In Talks To Sell Half Of Huge UK Wind Farm To Apollo
The title of this post, is the same as that as this article in The Times.
This is the sub-heading.
The US investment giant is eyeing a 50 per cent stake in the Danish energy company’s £8.5 billion Hornsea 3 project off the Yorkshire coast
These are the first three paragraphs, which add more detail.
An American investment giant is negotiating a deal to buy half of what will be the world’s largest off-shore wind farm off the coast of Yorkshire from the troubled Danish energy company Ørsted.
New York-based Apollo, which oversees assets of about $840 billion, is in talks with Ørsted about acquiring a 50 per cent stake in Hornsea 3, an £8.5 billion project that started construction in 2023 and will be capable of powering more than three million UK homes.
A transaction would be a boost for Orsted, which has come under pressure in recent months from rising costs and a backlash against renewables in the United States by President Trump. Orsted started the process of selling a stake in Hornsea 3 in 2024 and said last month that it had an unnamed preferred bidder for the asset, which the Financial Times first reported was Apollo.
I have written several times about Ørstedregularly building a large wind farm and then selling it, so they must be doing something right.
In World’s Largest Wind Farm Attracts Huge Backing From Insurance Giant, I wrote about how Aviva bought Hornsea 1 from Ørsted.
One of the guys at Aviva explained that these sort of investments gave the right sort of cash flow to fund insurance risks and pensions.
Now that Trump has attempted to give his kiss of death to wind power in the United States, will US funds be looking for quality investments like Hornsea 3 in the UK and other large wind farms in France, Germany, Norway, Japan and Korea?
Already, Blackrock are investing billions to build a massive data centre at Blyth, where there are Gigawatts of offshore wind power and an interconnector to Norway, so that UK and Norwegian wind can be backed up by UK nuclear and Norwegian hydropower.
Highview Power And Ørsted
I wrote Highview Power, Ørsted Find Value In Integrating Offshore Wind With Liquid Air Energy Storage in November 2023.
I would have thought, that by now a battery would have been announced in one of Ørsted’s many projects.
I asked Google AI if Highview Power and Ørsted were still talking about liquid air energy storage and received this reply.
Yes, Highview Power and Ørsted are still actively involved in Liquid Air Energy Storage (LAES), having completed a joint study in late 2023 on combining LAES with offshore wind to benefit the UK grid, and the findings were presented to the government for its long-duration energy storage (LDES) consultation. They believe LAES can reduce wind curtailment, increase energy productivity, and support grid resilience, with potential projects aligned with offshore wind farm timelines.
Perhap’s Ørsted are getting their finances aorted first?
Conclusion
The Times They Are A-Changing!
Offshore Construction Work Resumes On Revolution Wind After US Judge’s Ruling
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
A US judge in Washington has cleared the way for work to resume on the 704 MW Revolution Wind offshore wind farm after granting a temporary injunction that lifted the federal stop-work order imposed in August.
These two paragraphs add details to the post.
On 22 August, the US Department of the Interior’s (DOI) Bureau of Ocean Energy Management (BOEM) issued a stop-work order halting all offshore construction activities on the 704 MW project, which is already 80 per cent completed, according to its developers, Ørsted and Skyborn Renewables.
A few days later, the joint venture challenged the stop-work order in the US District Court for the District of Columbia, while Connecticut and Rhode Island filed their own lawsuits against the decision on the same day.
I’ve written about this project before in ‘This Has Nothing To Do With National Security’ | Revolution Wind Halt Leaves Connecticut Leaders Demanding Answers
Ørsted Pulls Plug On 2.4 GW Hornsea 4 Offshore Wind Project In UK
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Ørsted has discontinued the development of the UK’s Hornsea 4 offshore wind farm in its current form. The developer said the 2.4 GW project has faced rising supply chain costs, higher interest rates, and increased construction and delivery risks since the Contract for Difference (CfD) award in Allocation Round 6 (AR6) in September 2024.
This introductory paragraph adds more detail.
In combination, these developments have increased the execution risk and deteriorated the value creation of the project, which led to Ørsted stopping further spending on the project at this time and terminating the project’s supply chain contracts, according to the Danish company. This means that the firm will not deliver Hornsea 4 under the CfD awarded in AR6.
Consider.
- Hornsea 4 will be connected to the grid at a new Wanless Beck substation, which will also include a battery and solar farm, which will be South West of the current Creyke Beck substation. Are Ørsted frightened of opposition from the Nimbies to their plans?
- I also wonder if political uncertainty in the UK, and the possibility of a Reform UK government, led by Nigel Farage is worrying companies like Ørsted.
So will factors like these prompt companies like Ørsted to move investment to countries, where they welcome wind turbines like Denmark, Germany and The Netherlands.
Could Ørsted Be Looking At An Alternative?
This is a map of wind farms in the North Sea in the Dogger Bank and Hornsea wind farms, that I clipped from Wikipedia..
These are the Dogger Bank and Hornsea wind farms and their developers and size
- 37 – Dogger Bank A – SSE Renewables/Equinor – 1,235 MW
- 39 – Dogger Bank B – SSE Renewables/Equinor – 1,235 MW
- 38 – Dogger Bank C – SSE Renewables/Equinor – 1,218 MW
- 40 – Sofia – RWE – 1,400 MW
- 1 – Hornsea 1 – Ørsted/Global Infrstructure Partners – 1,218 MW
- 32 – Hornsea 2 – Ørsted/Global Infrstructure Partners – 1,386 MW
- 47 – Hornsea 3 – Ørsted – 2,852 MW
- 51 – Hornsea 4 – Ørsted – 2,400 MW
Note.
- That is a total of 12, 944 MW, which is probably enough electricity to power all of England and a large part of Wales.
- Wikipedia’s List of offshore wind farms in the United Kingdom, also lists a 3,000 MW wind farm, that is being developed by German company ; RWE called Dogger Bank South,
- The Dogger Bank South wind farm is not shown on the map, but would surely be South of wind farms 37 to 40 and East of 51.
- The Dogger Bank South wind farm will raise the total of electricity in the Dogger Bank and Hornsea wind farms to just short of 16 GW.
Connecting 16 GW of new electricity into the grid, carrying it away to where it is needed and backing it up, so that power is provided, when the wind doesn’t blow, will not be a nightmare, it will be impossible.
An alternative plan is needed!
AquaVentus To The Rescue!
AquaVentus is a German plan to bring 10 GW of green hydrogen to the German mainland from the North Sea, so they can decarbonise German industry and retire their coal-fired power stations.
- I introduce AquaVentus in AquaVentus, which I suggest you read.
- AquaVentus is being developed by RWE.
- AquaVentus connects to a German hydrogen network called H2ercules to actually distribute the hydrogen.
This video shows the structure of AquaVentus.
I clipped this map from the video.
Note.
- The thick white line running North-West/South-East is the spine of AquaVentus, that will deliver hydrogen to Germany.
- There is a link to Esbjerg in Denmark, that is marked DK.
- There appears to be an undeveloped link to Norway, which goes North,
- There appears to be an undeveloped link to Peterhead in Scotland, that is marked UK.
- There appears to be a link to just North of the Humber in England, that is marked UK.
- Just North of the Humber are the two massive gas storage sites of Aldbrough owned by SSE and Brough owned by Centrica.
- Aldbrough and Rough gas storage sites are being converted into two of the largest hydrogen storage sites in the world!
- There appear to be small ships sailing up and down the East Coast of the UK. Are these small coastal tankers, that are distributing the hydrogen to where it is needed?
When it is completed, AquaVentus will be a very comprehensive hydrogen network.
I believe that offshore electrolysers could be built in the area of the Hornsea 4 and Dogger Bank South wind farms and the hydrogen generated would be taken by AquaVentus to either Germany or the UK.
- Both countries get the hydrogen they need.
- Excess hydrogen would be stored in Aldbrough and Rough.
- British Steel gets decarbonised.
- A 1.8 GW hydrogen-fired powerstation at Keadby gets the hydrogen it needs to backup the wind farms.
Germany and the UK get security in the supply of hydrogen.
These may be my best guesses, but they are based on published plans.
New York Governor: ‘I Will Not Allow This Federal Overreach To Stand’
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Following the order of the US Department of the Interior (DOI) to halt all construction activities on the Empire Wind 1 offshore wind project, New York Governor Kathy Hochul said she would fight the federal decision.
This fight could get very nasty.
In the green corner, we have the New York governor; Kathy Hochul, Østed, Denmark and probably a lot of workers who thought they’d retrained for a new growing industry.
And in the orange corner, we have Donald Trump, Vladimir Putin and all the other useful idiots.
Interestingly, I may have met one of referees to this spat.
In The Lady On The Train, I describe a meeting with one of the most powerful justices in the United States.
As she either sat on the US Supreme Court or the New York State Supreme Court, it will be interesting how she would judge this case, given the liberal scientifically-correct conversation we had a few years ago.
The fight in the Courts would be very hard against a whole bench of formidable adversaries like this lady.
Ørsted Breaks Ground On Innovative UK Battery Energy Storage System
The title of this post, is the same as that, as this news item from Ørsted.
This is the sub-heading.
Ørsted, a global leader in offshore wind energy, has marked breaking ground for its first large-scale UK battery energy storage system (BESS) with a golden shovel ceremony.
These four paragraphs give more details of the project.
Located alongside Ørsted’s Hornsea 3 Offshore Wind Farm, near Norwich, Norfolk, the system will have a capacity of 600 MWh (and a 300 MW power rating), equivalent to the daily power consumption of 80,000 UK homes.
The golden shovel ceremony officially kicks off the construction phase of the project, known as Iceni after the Norfolk-based warrior tribe of the Roman era. It is expected to be operational by the end of 2026.
Preparatory works are now complete and the Ørsted, Knights Brown and Tesla Iceni team will continue with the remainder of the installation.
When completed, the battery energy storage system will be one of the largest in Europe.
Note.
- The batteries themselves are from Tesla.
- The project was previously known as the Swardeston BESS.
- The project will be located near to the Swardeston substation to the South of Norwich.
- The project doesn’t seem very innovative to me, as it appears to be a BESS built from Tesla batteries.
Like many batteries, it is designed to supply power for two hours.
Ørsted’s Earnings from Operational Offshore Wind Farms Up 20 Pct
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Ørsted has reported 2024 earnings from its operational offshore wind farms of DKK 23.8 billion (approximately EUR 3.2 billion), up by 20 per cent compared to 2023.
And this is the introductory paragraph.
The global offshore wind developer said on 6 February the increase was mainly due to the ramp-up of generation at Greater Changhua 1 and 2a offshore wind project in Taiwan, South Fork in the US, and Gode Wind 3 in Germany, as well as higher wind speeds, higher pricing of the inflation-indexed CfDs and green certificates. The increase in 2024 was dampened by lower availability, according to the company.
I don’t think Trummkopf would get those sort of returns, if he invested any of his own money in his plan for the “Riviera of the Middle East”.
Although my American friend ; Jack and his family enjoyed themselves in the Lebanon in the 1960s, when he lectured at the American University of Beirut.
On the other hand this article in The Times is entitled Trump’s Gaza Plan Watered Down Amid Backlash From Allies.
UK Wind Risks ‘Exponentially Rising’ Curtailment Without Energy Storage
The title of this post, is the same as that of this article on Recharge.
This is the sub-heading.
UK liquid battery pioneer Highview Power is working with renewable energy giant Orsted on plan to store excess power from its Hornsea offshore wind projects
This is the introductory paragraph.
The UK wind sector faces “exponentially” increasing curtailment of assets without a rapid rollout of energy storage, says the chief of liquid battery pioneer Highview Power, which is working with Orsted on a project to store excess offshore wind power.
The article also states that according to Octopus Energy, this cost could have been as high as a billion pounds last year.
In Grid Powers Up With One Of Europe’s Biggest Battery Storage Sites, I described how Ørsted were planning to build a large BESS near the Swardeston substation in Norfolk, where the Hornsea 3 wind farm will connect to the grid.
Have Ørsted decided to put a Highview Power battery on the Swardeston site, as it can be a bigger battery, as Highview Power talk about 200MW/2.5GWh capacity batteries on the projects page of the web site?
Highview also say this about co-operation with Ørsted on that page.
Highview Power and Ørsted’s joint study shows that the co-location of LAES with Ørsted’s offshore wind offers a step forward in reducing wind curtailment, and helping to move to a more flexible, resilient zero carbon grid.
The words are accompanied by pictures of a smart gas storage site, which shows four of the largest tanks, that might be used to store LNG.
In Could A Highview Power CRYOBattery Use A LNG Tank For Liquid Air Storage?, I estimated that one of the largest LNG tanks could hold about a GWh of energy.
So Highview Power’s visualisation on their project page would be a 4 GWh battery.
.
Lakeside Facility Connects To Grid And Becomes UK’s Largest Transmission Connected Battery
The title of this post, is the same as that of this press release from National Grid.
These three bullet points, act as sub-headings.
- National Grid plugs TagEnergy’s 100MW battery project in at its Drax substation.
- Following energisation, the facility in North Yorkshire is the UK’s largest transmission connected battery energy storage system (BESS).
- The facility is supporting Britain’s clean energy transition, and helping to ensure secure operation of the electricity system.
This paragraph introduces the project.
A battery storage project developed by TagEnergy is now connected and energised on the electricity transmission network, following work by National Grid to plug the facility into its 132kV Drax substation in North Yorkshire.
- Lakeside Energy Park’s 100MW/200MWh facility is now the largest transmission connected BESS project in the UK following energisation.
- The new facility will boost the capacity and flexibility of the network, helping to balance the system by soaking up surplus clean electricity and discharging it back when the grid needs it.
- To ensure a safe connection, National Grid, working with its contractor Omexom, upgraded its Drax 132kV substation to accommodate the additional clean power.
- Works included extending the busbars – which enable power flows from generation source on to power lines – upgrading busbar protection and substation control systems, and installing an operational tripping scheme, all of which helps keep the network stable and operating securely.
Owned and operated by TagEnergy – with Tesla, Habitat Energy and RES as project partners – the newly-connected battery will help exploit the clean electricity potential of renewable projects in the region, storing and releasing green energy to power homes and businesses and also helping to relieve any system constraints.
National Grid’s adjacent Drax 400kV substation already hosts the connection for Drax power station – the UK’s largest biomass facility – and will also connect the Eastern Green Link 2 electrical superhighway when it starts importing clean energy from Scotland in 2029.
Drax power station seems to be growing into a large node with several gigawatts of electricity, the UK’s largest BESS, a large biomass power station and the Eastern Green Link 2 electrical superhighway which will import clean energy from Scotland from 2029.
Drax appears to be transforming from the dirty man of the UK into a Jolly Green Giant.
I can see further power stations and sources, storage devices and technology joining the party at Drax.
This Google Map shows the Drax site.
Note.
- The cooling towers can be picked out in the South-East quarter of the map.
- The site is rail and road connected, with the River Ouse nearby.
- There is a lot of space.
Surely, Drax would have a big enough space, with a high quality and high capacity electrical connection for Ørsted and Highview Power to put one of their three 200 MW/2.5 GWh batteries, that I talked about in Centrica Business Solutions And Highview Power.
The Anonymous Widower 