A part of Watch Media

AMWatchMonday30 January 2023

  • Search
  • Log in
  • Fund Management
  • Pension
  • Responsible Investing
  • People
  • Search
  • Log in
  • Latest
  • Search
  • Log in
  • Fund Management
  • Pension
  • Responsible Investing
  • People
15/05/2017at 08:56

Vestas and JP Morgan enter partnership worth millions

The Danish wind turbine manufacturer has teamed up with the US investment bank and will inject millions of euros in a new platform for project financing to help boost market shares.
Photo: Frank Boutrup Schmidt/Vestas
by MAZ PLECHINGER

Vestas and JP Morgan Asset Management have entered into a new financial platform for the production of offshore wind turbine projects. The entity, which operates independently of the two companies, has been named Vision Renewables and has start-up capital of EUR 333 million.

This has been confirmed by Vision Renewables to FWAM sister site EnergyWatch.

"This partnership will help create new financing and project development opportunities in major onshore wind markets," says Vestas chief sales officer Juan Araluce according to industry media Recharge.

The goal is to provide funding for the construction of new wind projects with Vestas turbines, after which the money will be reinvested in new projects when the previous ones are ready for operation. This will unlock a "significant pipeline" of ready-to-build offshore projects, says the press release.

The financing platform thus aims to strengthen Vestas' market position across a range of markets by offering more than just turbines, says an employee from Vision, speaking anonymously to EnergyWatch. Several of Vestas' competitors, such as conglomerates GE and Siemens, are already offering project financing to certain wind turbine projects.

"We are currently in the process of analyzing projects in different geographic areas. Our goal is that as soon as we find projects which match our criteria and involve strong collaborative partners, then we are ready with financing. We are ready to start up, so now it is more about finding the right projects," he says.

Funding in Vision Renewables will be used to finance projects on markets beyond the US. Besides Canada and Australia, this applies to a number of the largest European markets such as Germany, France, UK, Ireland, the Netherlands, and the Nordic countries Norway, Sweden, and Finland. However, Denmark is not among those markets.

Size-wise, there are lower and upper limits for where Vision will invest. However, the biggest projects typically develop from, for example, multinational energy companies with already established funding sources, but otherwise aim at customer groups that span from utilities to very small developers, which often find it difficult to raise capital on their own.

The French onshore wind tender launched yesterday is proof that there is good business in the small projects. While the 18 MW of projects available may not sound like much, a total of 3 GW will ultimately be up for grabs ahead to 2020.

This is not the first time that Vestas has engaged in the pre-installation stages of wind turbine projects. In February, EnergyWatch reported that the wind turbine manufacturer entered into the joint venture Roaring Fork Wind with UK developer RES Group. In contrast to the new deal with JP Morgan, the development work was connected to the US market.

Nor is this the first time that Vestas is involved in finance on the European markets. Before the crisis in Romania, the wind turbine manufacturer contributed to financing and operating various projects. An initiative, which ended up costing Vestas dearly when the country retroactively slashed subisides.

However, Vision has no intention of owning wind farms, when the first farms begin operations.

JP Morgan is among the largest asset managers in the wind industry. The US major bank has invested in more than 3 GW of renewable energy production. A large share of this has involved US projects, but as recently as this February JP Morgan Asset Management took over British developer Infinis' approximately 400 MW British portfolio of wind projects from asset manager Terra Firma.

English Edit: Lena Rutkowski

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

!
Newsletter terms

Front page now

Photo: PR/Storebrand/SPP
Fund Management

Swedish fund manager snaps CEO from Storebrand Fonder

Following more than six years as CEO of Sweden’s Storebrand Fonder, Åsa Wallenberg will move to a slightly smaller competitor this summer.
  • Storebrand Fonder provides more than three-quarters of Swedish fund inflow
  • Storebrand AM: We need to put the loss of nature high on the agenda

For subscribers

DNB Markets’ Chief of Sustainable Finance Thomas Hemmestad | Photo: Sebastian Holsen | Foto: Sebastian Holsen
Responsible Investing

DNB lists reasons why European green bond standard left in limbo

For subscribers

AMNews

Backtracking on ESG classification erodes impact investing's credibility, veteran warns

For subscribers

Photo: Jonathan Ernst/Reuters/Ritzau Scanpix
AMNews

The bond-market comeback of 2023 is heading to first big test

For subscribers

Magnus Vie Sundal, portfolio manager at Borea Asset Management. | Photo: Borea Asset Management PR
Fund Management

Speciality manager in Norway grew its AUM by 13% in difficult year

For subscribers

Pension firms can play a significant role in steering companies into a more sustainable direction, says SPP and Storebrand Head of Sustainability, Johanna Lundgren Gestlöf. | Photo: Jonas Eng
AMNews

Two additional pension firms join the green club in Swedish sustainability rankings

For subscribers

Further reading

Magnus Vie Sundal, portfolio manager at Borea Asset Management. | Photo: Borea Asset Management PR
Fund Management

Speciality manager in Norway grew its AUM by 13% in difficult year

Most Norwegian fund managers noted a decline in assets under management last year. A relatively small firm achieved an entirely new market level in 2022.

For subscribers

Speed is of the essence when launching new investment products, CFO Masih Yazdi says. | Foto: PR / SEB
Fund Management

SEB aims for speedy product launches to make up for huge AUM drop in 2022

The loss of a SEK 50bn mandate affected SEB’s AUM performance last year. Looking ahead, CFO Masih Yazdi believes that alternatives and fixed income will be important investment areas.

For subscribers

Idleness plagues Danish mall City Vest, a problem a new buyer now has to solve | Foto: Gregers Tycho
Pension

ATP and Danica sell shopping mall with hefty discount

At the turn of the year, City Vest in Denmark’s second-largest city Aarhus was sold at a significantly lower price than an official assessment of its value. Still, the seller, Danske Shoppingcentre, is satisfied to steer clear of comprehensive investments.

For subscribers

Latest news

  • Swedish fund manager snaps CEO from Storebrand Fonder – 14:41
  • DNB lists reasons why European green bond standard left in limbo – 14:06
  • The bond-market comeback of 2023 is heading to first big test – 12:59
  • ATP and Danica sell shopping mall with hefty discount – 10:50
  • Backtracking on ESG classification erodes impact investing's credibility, veteran warns – 10:30
  • Goldman’s Solomon joins CEOs taking pay cuts after laying off thousands – 09:29
  • Speciality manager in Norway grew its AUM by 13% in difficult year – 07:52
  • Two additional pension firms join the green club in Swedish sustainability rankings – 27 Jan
  • Investors are missing earnings data after 2022 IPO collapse – 27 Jan
  • Danes' equity holdings shrank by 9% in 2022 – 27 Jan
See all

Jobs

  • Porteføljemanager til danske ejendomme i PenSam

  • PenSam søger en jurist med interesse for den finansielle sektor

Watch Jobs

  • Scrum Master with a practical approach

  • Senior Porteføljemanager

  • Head of Compliance, DLA Piper Denmark

  • Forvaltningsservicechef i Vestforbrænding

  • Business Change Manager til implementering af fremtidens togs uddannelsesprojekter

See all jobs

Jobs

  • Porteføljemanager til danske ejendomme i PenSam

  • PenSam søger en jurist med interesse for den finansielle sektor

See all jobs

Colophon

AMWatch
Search

Sections

  • Fund Management
  • Pension
  • Responsible Investing
  • People
  • Sitemap
  • RSS feeds

Editor

Anne Louise Houmann

alh@amwatch.dk

Tel.: +45 2830 5142

Editor-in-chief

Anders Heering

Publisher

JP/Politiken Media Group Ltd

Advertising

annoncering@infowatch.dk

Tel.: +45 7077 7491

Advertising

Job Advertising

job@infowatch.dk

Tel.: +45 7077 7491

Jobs

Subscription

Try AMWatch or get an offer for a subscription meeting the exact needs of you or your company.

amwatch@infowatch.dk

Tel.: +45 7077 7491

Learn more about subscriptions here

Address

AMWatch

Rådhuspladsen 37

1785 Copenhagen K, Denmark

Tel.: +45 3330 8382

Guidelines

  • Privacy Policy

Copyright © AMWatch — All rights reserved

Microsoft is in the process of discontinuing Internet Explorer – and so are we.
For a better experience, we recommend using one of the following browsers.

Kind regards,
AMWatch

Google ChromeMozilla FirefoxMicrosoft Edge