GIG teams up with Vargronn, Agder Energi for offshore wind in Norway

Green Investment Group Ltd (GIG), part of Australia’s Macquarie Group Ltd (ASX:MQG), has teamed up with Vargronn and Agder Energi to bid for an area in Norway’s Sorlige Nordsjo II zone that is expected to host up to 3 GW of offshore wind.

The companies said on Thursday that GIG has joined a consortium of Vargronn and Agder Energi that was already working on the initial development activity.

Vargronn is a Norwegian renewable energy joint venture (JV) between Italian oil and gas company Eni SpA (BIT:ENI) and Norwegian energy-focused private equity firm HitecVision AS. The JV maintains with a separate partnership with Equinor ASA (NYSE:EQNR) with an agreement to develop floating offshore wind at the Utsira Nord zone.

Agder Energi is a Norwegian hydropower supplier. It is also the regional grid operator in the Norwegian landing location for the connection from Sorlige Nordsjo II.

Vargronn and Agder Energi will have stakes of 37.5% each in the consortium and GIG will own 25%.

According to Vargronn’s chief executive Olav Hetland, the partnership possesses “a combination of global offshore wind track record, experience and understanding of regional grid infrastructure and market design, as well as a strong relationship with the offshore supplier industry and value chain.”

The companies noted that Sorlige Nordsjo II offers proximity to the European power market, shallow waters, good wind conditions and nearby complementary industries.

This marks the latest announcement of a consortium in pursuit of offshore wind licenses in Norway.

The Norwegian government has opened the Utsira Nord and Sorlige Nordsjo II areas for offshore wind and is currently working on the allocation process. Minister of petroleum and energy Tina Bru said in June that the government aims to announce the auction for Sorlige Nordsjo II in the first quarter of 2022.

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