Daiwa Securities buys into 1.2-GW Hornsea One offshore wind park

Daiwa Energy & Infrastructure (DEI), a unit of Japanese financial services firm Daiwa Securities Group Inc (TYO:8601), has acquired a minority interest in the 1.2-GW Hornsea One wind farm in UK waters.

DEI announced the transaction on Friday, saying that it is constructed on its partnership with British infrastructure fund manager Equitix Investment Management Ltd.

The Hornsea One complex is located 120 km (75 miles) off the coast of Yorkshire, northeast England. It is powered by 174 Siemens Gamesa turbines that became fully operational in December 2019, forming the world’s largest offshore wind farm. The plant is operated by Denmark’s Ørsted A/S and has in place an inflation-linked Contract for Difference (CfD) that expires in 13 years.

The Hornsea One project was originated by Ørsted and developed through a joint venture (JV) with Global Infrastructure Partners (GIP) after the latter bought a 50% interest in 2018.

In the past year, GIP has been gradually cutting down its stake. It sold 10.2% to The Renewables Infrastructure Group (TRIG) in July 2022 and a month later shed a combined 12.5% interest to UK energy investor Octopus Energy Group and alternative investment fund GLIL Infrastructure, followed by a deal for 12.5% with Greencoat UK Wind Plc. A divestment with an unspecified size to Equitix was also agreed at that time.

Daiwa Securities, which invests in an offshore wind project for the first time, noted that its participation in the scheme will provide it with “sustainable cash flows.”

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