Danish pension fund ATP, Hilleroed, is joining forces with a renewable energy company to bid for the contract to create a Danish North Sea energy island.
The 960 billion Danish kroner ($154.6 billion) pension fund and Orsted said Thursday they will submit a bid in the upcoming procurement process to build the North Sea energy island — an artificial island to connect and distribute power from surrounding offshore wind farms. The island will be considered critical infrastructure and will be majority state-owned, according to the Danish Energy Agency. The procurement process is set to commence in 2022, with a contract awarded at the beginning of 2023.
ATP and Orsted want to make a "significant contribution to mark Denmark's ambitious green transition, its buildout of energy infrastructure, and shape the future buildout of large-scale offshore wind," a joint news release said.
"The North Sea energy island is a very interesting investment case for ATP because it can contribute to good and stable pensions and develop Danish industrial positions of strength while also being a decisive lever for the green transition in Denmark," ATP CEO Bo Foged said in the release.
Mr. Foged said the investment — the value of which was not available — was not without risk, for which "members must be compensated."
A spokesman could not immediately be reached for comment.