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Denmark's Oersted says to buy U.S. onshore wind developer

Danish renewable energy company Oersted said on Thursday it had agreed to acquire Lincoln Clean Energy LLC (LCE), a U.S.-based onshore wind developer, in a deal worth 580 million U.S. dollars.


LCE's existing management team will continue to run the business which will be a separate unit outside of Oersted's Wind Power business, Oersted said in a press statement.


"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," said Oersted CEO Henrik Poulsen in the statement.


Oersted announced in February that the company may invest in other renewable energy technologies to reinforce its position in renewable energy and create additional value for its shareholders.


According to Poulsen, the acquisition of LCE will provide a strong growth platform in the United States, which is one of Oersted's strategic growth markets.


The transaction is subject to approval by the U.S. competition authorities and is expected to close prior to the end of 2018.


Founded in 2009, LCE has developed over 1.8GW of renewable power projects in California, New Jersey and Texas and was the largest non-utility wind developer in the United States in 2017.


Headquartered in Denmark, Oersted has installed 5.1GW offshore wind capacity in Europe and has a further 3.8GW under construction. It entered the U.S. market in 2015.


On Thursday, Oersted also reported an operating profit of 8.6 billion Danish kroner for the first half of 2018, up 11 percent year-on-year, which was partly due to a 32 percent increase in operating profits from wind farms in operation. (1 U.S. dollar=6.44 Danish kroner)
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