DONG Energy divests 50% of the UK offshore wind farm project Burbo Bank Extension to PKA and the LEGO Group

10.02.2016 10:00

​Today, DONG Energy has signed and completed an agreement to divest 50% of the
258 MW UK offshore wind farm project Burbo Bank Extension to Danish pension
provider PKA and KIRKBI A/S, parent company of the LEGO Group. Each investor
will obtain a 25% ownership interest in the project.

Burbo Bank Extension will be constructed by DONG Energy with offshore
construction works commencing in the spring 2016. The project is expected to be
fully commissioned in the first half of 2017. The total purchase price for the
investors amounts to approximately GPB 660 million (DKK 6.6 billion) to be paid
in the period 2016-2017.

Burbo Bank Extension will consist of 32 turbines and will be the first
large-scale wind farm to deploy the new MHI Vestas 8.0 MW turbine. When
completed Burbo Bank Extension will be able to supply CO2-free power equivalent
to the annual electricity consumption of more than 230,000 households.

DONG Energy will provide operation and maintenance services to Burbo Bank
Extension under a long-term O&M agreement. Furthermore, DONG Energy will be
responsible for the sale and delivery to the market of the part of the
production that is generated by PKA and KIRKBI A/S’s 50% ownership share.

Henrik Poulsen, CEO of DONG Energy, welcomes the partners:

“I am delighted to welcome the LEGO Group and PKA to a new partnership with
DONG Energy. Both of them are already trusted partners in other DONG Energy
offshore wind projects and we are proud to be able to build on these existing,
successful partnerships. Our partners’ commitment to the green transition is
well known, and I am pleased that they continue to find our market-leading
partnership model attractive.”

For the LEGO Group the investment fits well with its high ambition of making a
positive impact on the environment. Jørgen Vig Knudstorp, President and Chief
Executive Officer of the LEGO Group comments:

”I am proud to announce our investment in the Burbo Bank Extension together
with our partners DONG Energy and PKA. This investment is another substantial
step for the LEGO Group towards balancing our global energy consumption with
renewable energy capacity. Our goal is to fulfil this by 2020 and beyond as we
want to make a positive impact on the planet our children will inherit –
primarily by providing great play experiences that inspire and develop
children, but also through our commitment to the environment.”

The investment is made by KIRKBI A/S, which owns 75% of the LEGO Group, and the
investment in Burbo Bank Extension is the second major long-term investment
within KIRKBI’s strategic investment area: Renewables. In 2012, KIRKBI A/S
invested in the Borkum Riffgrund 1 offshore wind farm. Both investments support
the LEGO Group in balancing its global energy consumption with renewable energy
capacity.

Today’s announcement marks PKA’s fifth investment in an offshore wind farm, of
which three are together with DONG Energy. The investment is a part of PKA’s
ambition to combine stable long-term returns with investments in renewable
energy:

Peter Damgaard Jensen, CEO at PKA, said:

"In the spring of 2015 we blacklisted 31 coal companies, which have since lost
more than 60% of their value. In the same period, the return on our offshore
wind farms has been more than 7%. The first investment in a wind farm by PKA
was Anholt offshore wind farm in 2011 together with DONG Energy, and today PKA
has invested in five offshore wind farms. Together they will provide renewable
energy to about 2 million households. We are proud to be able to provide a good
return to the pension savers and at the same time make a positive difference”.

The information provided in this announcement does not change DONG Energy’s
previous financial guidance for the 2016 financial year.

For additional information, please contact:

Media Relations
Martin Barlebo
+45 9955 9100

Investor Relations
Allan Bødskov Andersen
+45 9955 9769

Facts about Burbo Bank Extension

-- The wind farm will be located in the Irish Sea, 7 kilometres from the coast
of Liverpool.
-- The wind farm will consist of 32 MHI Vestas V164-8.0MW wind turbines.
-- The wind farm will produce enough environmentally friendly electricity to
supply 230,000 British households each year.
-- Final investment decision regarding the wind farm was taken by DONG Energy
in December 2014.
-- The wind farm is expected to be fully commissioned in the first half of
2017

 

About DONG Energy
DONG Energy is one of the leading energy groups in Northern Europe,
headquartered in Denmark. Around 6,700 ambitious em­ployees are engaged in
developing, constructing and operating offshore wind farms; generating power
and heat from our power stations; providing energy to residential and business
customers on a daily basis; and producing oil and gas. Group revenue was DKK
71bn (EUR 9.5bn) in 2015. For further information, see www.dongenergy.com

About the LEGO Group
The LEGO Group is a privately held, family-owned company with headquarters in
Billund, Denmark, and main offices in Enfield, USA, London, UK, Shanghai,
China, and Singapore. Founded in 1932 by Ole Kirk Kristiansen, and based on the
iconic LEGO® brick, it is one of the world's leading manufacturers of play
materials. Guided by the company spirit: "Only the best is good enough”, the
company is committed to the development of children and aims to inspire and
develop the builders of tomorrow through creative play and learning. LEGO
products are sold worldwide and can be virtually explored at www.LEGO.com.

About PKA
PKA is one of the largest pension funds in Denmark with 275,000 members and
assets of 235 billion DKK. PKA has invested about 17 billion DKK in
climate-related projects, including wind farms, green bonds and the Danish
Climate Investment Fund. The aim is that climate-related projects will be 10%
of total investments in 2020.

With Burbo Bank Offshore Wind Farm in England PKA has invested in five offshore
wind farms in four countries: Anholt in Denmark, Gode Wind II and Butendiek in
Germany and Gemini in the Netherlands. A total investment of more than 9
billion DKK, which will provide renewable energy to about 2 million.
households.
https://www.pka.dk/

Company announcement_Burbo_Bank_Extension100216.pdf