August 9 (Renewables Now) - Denmark’s Ørsted A/S (CPH:ORSTED) has agreed to buy US onshore wind developer Lincoln Clean Energy (LCE) and its 813-MW portfolio of recently commissioned and under-construction assets.
The Danish offshore wind developer said on Thursday that the agreement with global infrastructure investment manager I Squared Capital values the target entity at USD 580 million (EUR 500m). The buyer’s goal is to maintain and further expand its business in new markets, betting on other renewable energy technologies, apart from offshore wind. Earlier this year, it said that such a strategy will strengthen its positions in the renewable energy field and create additional value for its shareholders.
Based in Chicago, LCE owns a portfolio of 513 MW of recently commissioned assets, mostly onshore wind, with 10 MW of solar photovoltaic (PV). The firm also has 300 MW of projects under construction, mainly in Texas. Separately, it has more than 1.5 GW of development projects in the pipeline, expected to be completed by 2022. The company operates through offices in Chicago and Austin.
“The acquisition of LCE will provide a strong growth platform in the US, which is one of Ørsted’s strategic growth markets,” said Ørsted’s CEO Henrik Poulsen. For LCE, the acquisition is an opportunity for the company to enhance its project execution and growth trajectory, according to its CEO Declan Flanagan.
Following closing of the transaction by end-2018, LCE will operate as a separate unit outside of Ørsted’s Wind Power business. The transaction is pending clearance by the US competition watchdogs.
(USD 1.0 = EUR 0.862)