Danish power giant Ørsted announced on Monday the completion of its acquisition of US onshore wind energy developer Lincoln Clean Energy in a move worth approximately $580 million, and which set about the restructuring of Ørsted’s business units.
Ørsted first announced the acquisition back in August, committing to acquire Lincoln Clean Energy from global infrastructure investment manager I Squared Capital in a deal worth approximately $580 million. The acquisition was thus completed on Monday, leading to the creation of a new business unit inside Ørsted, Onshore Wind, which will be reported as a separate segment — though Lincoln Clean Energy will be the only activity in the unit from the outset.
The introduction of its new Onshore Wind business unit has also led Ørsted to rename its existing business units to better streamline its operations. Specifically, Wind Power will now be renamed Offshore Wind — unsurprising, considering the introduction of a separate Onshore Wind unit; Bioenergy & Thermal Power will be renamed Bioenergy — highlighting the companies continual move away from fossil fuel energy sources. Specifically, Ørsted’s Tom Lehn-Christiansen explained that, “Most of our combined heat and power (CHP) plants are being converted to run on biomass, and we’re investing in both Renescience and biogas. Therefore, we believe that Bioenergy is a more fitting name for this business area.”
In addition, the company’s Distribution & Customer Solutions will be renamed Customer Solutions — highlighting the company’s decision to move away from distribution, following the June move to sell off its Danish power distribution and residential customer business.
Ole Kjems Sørensen, Executive Vice President and member of Ørsted’s Executive Committee, will head up the Onshore Wind division, while he continues to lead the company’s Corporate Development and M&A activities.