Ørsted to buy Lincoln Clean Energy for $580mn
Danish energy company Ørsted has agreed to purchase US wind and solar company Lincoln Clean Energy for $580mn.
Lincoln Clean Energy develops, owns and operates clean power projects which a specific focus on wind and solar. In particular, the company owns a range of onshore wind farms in the US, and currently has a capacity of 513MW within its portfolio. By 2022, total capacity on Lincoln wind farms will reach 1.5GW.
Ørsted currently has a 25% global market share in offshore wind and is the leading energy supplier in the UK, with 5,800 employees globally. The firm started a journey to becoming an entirely ‘green’ energy company around 10 years ago.
Since then, Ørsted says it has reduced its use of coal by 73% and halved its CO2 emissions. It is currently converting its Danish coal-fired power stations to sustainable biomass, and hopes to be coal free by 2023.
Regarding the Lincoln Clean Energy purchase, Ørsted CEO Henrik Poulsen said: “The global market for onshore wind power is expected to grow significantly in the coming years and the US is a leading onshore wind market. The acquisition of Lincoln Clean Energy will provide a strong growth platform in the US, which is one of Ørsted’s strategic growth markets. It is an investment case with healthy economics based on prudent assumptions about key value drivers and market developments.”