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Orsted buys LCE
Posted on Friday, 10 August 2018 10:20
Orsted has announced it is expanding its portfolio by buying US onshore wind farm developer Lincoln Clean Energy (LCE) from I Squared Capital for the enterprise value of USD 580.00 million.
Subject to approval by US competition authorities, the deal is expected to close prior to the end of 2018.
Upon completion, LCE’s management team will continue to run the business as a separate unit to the buyer’s company.
Orsted has operations throughout Europe, the US and Asia, and claims to have built enough offshore wind to power 9.50 million people.
The deal represents the company’s strategy to maintain its status as the world-leading offshore wind business and to pursue new fields within the industry.
Henrik Poulsen, chief executive of the buyer, 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”.
This follows plans announced in February by the company to invest in other renewable energy fields to expand its portfolio and ensure value for shareholders.
Orsted first entered the US in 2015, and currently holds the rights to develop proposed offshore wind projects bay state wind and ocean wind, totalling 4.00 GW of potential offshore wind capacity.
Poulsen added that the deal will provide strategic growth for the company, due to the LCE’s healthy finances and keen insights into market developments.
Headquartered in Chicago, Illinois, the target claims to be the leading developer of US onshore wind projects.
LCE has a portfolio of 513.00 MW of wind and solar assets, including a further 300.00 MW of resources under construction, mainly based in Texas.
With over 1.80 GW gigawatts of renewable power projects, including in California and New Jersey, LCE was the largest non-utility wind developer in the US as of 2017.
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