PensionDanmark Ventures into Energy Island Ventures with New Investment

Copenhagen Infrastructure Partners has introduced Copenhagen Energy Islands, a fresh endeavor leveraging CIP's extensive proficiency in offshore wind to advance energy island initiatives worldwide. With a focus on regions spanning the North Sea, the Baltic Sea, and South-East Asia, Copenhagen Energy Islands is actively shaping a portfolio comprising approximately 10 energy island projects.

These energy islands, serving as expansive offshore energy hubs, are poised to facilitate the substantial expansion necessary for the forthcoming wave of offshore wind deployment on a global scale.

“We see a great commercial potential in energy islands globally and as a strong contender for the effective rollout of liquid green hydrogen on a large scale. CEI has the potential to become a catalyst and real world leader in the establishment of energy islands making it an attractive investment opportunity for returns to our members’ pension savings,” said Peter Stensgaard Mørch, deputy CEO of PensionDanmark and board member at CEI.

Part of the investment originates from the conversion of ownership stakes previously held by Vindø into the new company. Additionally, PensionDanmark has chosen to expand its investment in the emerging venture.

Energy islands represent a fusion of established technologies in a novel and expansive manner, offering a cost-effective avenue for the deployment and integration of offshore wind projects at a larger scale.

Critical factors driving value include significant reductions in power transmission expenses, the potential for large-scale offshore green hydrogen production, and the synergistic benefits derived from the integration of power and hydrogen production processes.

Copenhagen Energy Islands operates as an independent entity, with a majority ownership held by CIP alongside a consortium of institutional investors. This consortium includes prominent Nordic, European, and North American investors boasting a proven history of investments in renewable energy infrastructure. Notable members of this investor group include PensionDenmark, PFA, SEB, and Andel.

“Our vision is to provide concrete solutions to the global challenge of scaling up renewables. If we want to achieve net-zero carbon emissions by 2050, we will need to scale up the deployment of offshore wind and other renewables to an unprecedented level. Today, the challenge for offshore wind is less about building the incremental offshore wind farm, but more how to integrate large-scale offshore wind energy into the global energy systems. We see energy islands as a key tool in solving this challenge and realizing the ambitious offshore wind targets across the globe,” said Jakob Baruël Poulsen, Managing Partner and founder of CIP.

Copenhagen Energy Islands is headquartered in Copenhagen with a team of industry professionals with extensive experience within renewables, infrastructure, and finance.

Source: PensionDanmark