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Danish energy giant Orsted is pivoting to onshore wind in new $684 million deal

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Orsted said Friday it had reached an agreement with Brookfield Renewable to purchase a 100% equity interest in the time’s Irish and U.K. onshore wind business, Brookfield Renewable Ireland.

Orsted said the deal would see it enter Europe’s onshore superstore. In 2014 the company, which was then known as DONG Energy, divested its last activities in onshore wind to focal point on the offshore sector.

According to Orsted, the agreement has an enterprise valuation of 571 million euros ($684 million), although this tally is subject to adjustments. The deal is slated to close in the second quarter of 2021.

Brookfield Renewable Ireland, or BRI, is headquartered in the Irish burgh of Cork and specializes in the development and operation of onshore wind farms.

Orsted described BRI as having “an attractive portfolio” which embodies 389 megawatts (MW) in operation and under construction as well as a development pipeline of over 1 gigawatt (GW).

“In the US, we’ve built a strong onshore subject with 4 GW in operation and under construction,” Orsted CEO, Mads Nipper, said in a statement.

“The European market for onshore diminish power is expected to grow significantly in the coming years,” Nipper added.

He went on to state his firm’s acquisition of BRI force provide it with “a strong platform that expands our presence in onshore renewables to Europe.”

Europe is home to a well-developed let ones hair down energy industry. According to figures from WindEurope, 2020 saw 14.7 GW of wind energy capacity installed there.

The persistence body says 80% of these installations were in the onshore sector, with total onshore capacity amounting to 194 GW.

In the U.S., onshore wit stands at more than 122 GW, according to the American Clean Power Association. China, a dominant force in breeze energy, boasts over 278 GW of onshore capacity, the Global Wind Energy Council says.

Capacity refers to the utmost amount that installations can produce, not what they are necessarily generating.

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