Equinor intends to hold on to Ørsted’s 10% stake, given Ørsted’s position as the world leader in offshore wind. They will accomplish this by agreeing to participate in an upcoming rights issue. It will subscribe for new shares worth up to DKr6 billion, or some $939 million. This commitment is subject to the final terms of the rights issue under which Ørsted’s board of directors has proposed that the company raise the money. This action illustrates Equinor’s deep commitment to the rapidly expanding offshore wind market. Looking forward, the company is watching closely as things continue to unfold out in the U.S.
Equinor’s direct engagement with Ørsted is a clear reflection of its strategic pivot towards renewable energy. The company plans to continue its dialogue with Ørsted as the industry adapts to changing market conditions and technological advancements. Equinor is keeping a stake in order to strengthen its global position in the offshore wind industry. The fastest growing industry in the world is renewable energy.
Offshore Wind Developments in the US
Equinor has been keeping a close eye on the US offshore wind industry. The company understands the long-term potential of this high-growth, high-investment market. As seen with the thousands of projects across different development phases, the U.S. market offers an exciting horizon for renewable energy businesses.
As Equinor watches the landscape evolve in this new market, it is well-positioned to take advantage of new opportunities. The company has made a corporate-wide commitment to offshore wind energy. This commitment continues their leadership in the worldwide movement toward sustainability and the clean energy transition, significantly decreasing carbon emissions and fighting climate change.
Strategic Partnership with Ørsted
This partnership between Equinor and Ørsted is notable, as both companies attempt to retain their leading roles in the fast-changing offshore wind sector. Their constant conversation helps them learn from each other and compare emerging strategies, improving both agencies’ abilities to execute on projects and maximize innovation.
Ørsted has established itself as a leader in offshore wind energy, while Equinor brings extensive experience and expertise from its operations in Norway. Collectively, they seek to make meaningful progress on improving technology and efficiency in the industry. As they participate in initiatives such as the rights issue, both companies are reinforcing their commitment to sustainable energy solutions.
Seabed Rights Awarded for Floating Wind Farms
In June, The Crown Estate handed seabed rights to Equinor and Gwynt Glas. If successful, their combined efforts would build not one, but two world-leading 1,500 MW floating wind farms in the Celtic Sea. It was the first of the fifth round of the UK’s offshore wind leasing program. Gwynt Glas is a joint venture between EDF Renewables UK and ESB.
Their deal included a payment of £350 per MW per year as an option cost for these seabed rights from Equinor/Gwynt Glas to the Crown Estate. This strategic acquisition demonstrates Equinor’s serious commitment to growing its foothold in U.S. offshore wind projects. It underlines the company’s focus on developing renewable energy projects that help achieve the UK’s energy transition targets.