Energy giant Equinor has taken a £2billion stake in the offshore wind developer behind two major North Sea projects as it seeks to build up its renewables portfolio.
The transaction makes Equinor the second largest shareholder in Ørsted, after the Danish State, which holds a controlling stake in the company.
Equinor CEO Anders Opedal said the deal is a long-term bet on the sector, which he says will have a "crucial role" in the energy transition.
Ørsted has a net renewable generation capacity of around 10.4GW, and a gross portfolio of offshore wind projects in execution of around 7GW.
INTOG round
Its UK projects include the Salamander Offshore Wind Farm, which is a joint venture between Orsted, Simply Blue Group and Subsea 7.
The project - which will be built 35km off the coast of Peterhead - is part of Crown Estate Scotland’s Innovation and Targeted Oil and Gas (INTOG) leasing round.
Ørsted is also developing the Stromar Floating Offshore Windfarm, off Caithness, alongside Blue Float Energy and Nadara.
Mr Opedal said: “This investment is in line with Equinor’s strategy of value driven growth in renewables.
"The offshore wind industry is currently facing a set of challenges, but we remain confident in the long-term outlook for the sector, and the crucial role offshore wind will play in the energy transition."
BP moves other way
Meanwhile, BP has reportedly abandoned a target to cut oil and gas output by 2030 as CEO Murray Auchincloss scales back the firm's energy transition strategy to regain investor confidence.
According to Reuters, the London-listed company is now targeting several new investments in the Middle East and the Gulf of Mexico to boost its oil and gas output.
Mr Auchinloss, previously BP's finance head, has sought to distance himself from the approach of his predecessor Bernard Looney, vowing instead to focus on returns and investing in the most profitable businesses, first and foremost in oil and gas.
The company continues to target net zero emissions by 2050.