Ship Technology

Danish pension fund invests $1bn in Port of Esbjerg’s green transition

The investment will cover a series of projects expected to progress over the next decade, capitalising on the port’s role in the offshore wind industry and other green technologies.

The Port of Esbjerg has entered a cooperation agreement with Danish labour market pension fund PensionDanmark to invest up to DKr7bn ($1bn) in the port’s green transition.

The majority of the investment (DKr5.8bn, $850m) is expected to go towards the construction of offshore wind turbine production facilities by 2027, allowing the port to further capitalise on its position in the North Sea and its existing success with the offshore wind sector.

Port director Dennis Jul Pedersen said: “Much more pace is needed for the green transition and this requires enormous capacity.

“With the prospect of a billion kroner investment from PensionDanmark, we can look forward to being as ready as possible, as quickly as possible.”

In addition to the investment into the offshore wind turbine facility, around DKr700m ($103m) will be used to build terminals for handling power-to-x and the capture and storage of CO₂ in the hinterland of the port and in the North Sea itself by 2028.

Finally, DKr500m ($73m) will be invested into turning the Port of Edbjerg into a multi-modal hub, connecting sea transport to the surrounding road network, the railway at Esbjerg Harbour and the air transport options at Esbjerg Airport by 2032.

PensionDanmark CEO Torben Möger Pedersen highlighted the pension fund’s over 15 years of experience in investing in green technologies: “We see good opportunities to contribute to the development of the port of Esbjerg as a natural hub for a future green energy adventure in the North Sea.

“We can give Esbjerg and Denmark the opportunity to build up an international leading position, which contains considerable export potential, as we have already seen in the wind energy area.”

The investments continue a series of moves by the Port of Esbjerg in the world of green technology including using green hydrogen and working with IT provider Atos on decarbonising the port’s operations.

The Port of Esbjerg is one of Denmark’s largest ports and sees an annual cargo turnover of 4.3m tonnes from 6,000 vessels. It is also home to over 200 businesses across its 4.5m² site.