UK-defined contribution master trust NEST and GLIL Infrastructure, the local government pension schemes-backed fund, have partnered to invest £400m (€478m) for a 12.5% stake in the Hornsea One Offshore Wind Farm.
Octopus Energy said its energy generation arm has invested £200m in the Hornsea One offshore wind farm in the UK on behalf of NEST via a joint venture with GLIL, who are also investing £200m.
Hornsea One is the largest operational offshore wind farm in the world. The 1.2GW wind farm off the Yorkshire coast has been operational since 2020 and is operated by Danish energy firm Ørsted.
The latest deal expands Octopus and NEST’s relationship which started last year when the master trust appointed Octopus to help it invest UK defined-contribution pension capital in clean-energy infrastructure.
Zoisa North-Bond, CEO of Octopus Energy Generation, said: “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.”
Alex Brierley, co-head of Octopus Energy Generation’s fund management team, said: “This latest deal is testament to the growing demand we’re seeing from institutional investors to invest in renewable energy.
”It’s brilliant to be expanding our relationship with Nest and starting a new one with GLIL to help pension savers’ money make a truly positive impact on people and the planet.”
Stephen O’Neill, NEST’s head of private markets, said: “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.”
Daniel Hobson, investment director at GLIL Infrastructure and head of real assets at Greater Manchester Pension Fund, said: “Offshore wind capacity plays a major role in the generation of renewable energy, so the potential of what is being developed here is vast.
”Our investment will not only support the UK’s energy transition and net-zero ambitions, and continue our track record in the renewable energy sector, it will also generate sustainable, long-term returns for millions of pension fund members.”
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