Norway’s $2.1-trillion oil fund is looking to invest in renewable energy assets in the U.S. and expand its clean energy portfolio in Europe, a senior executive at the world’s largest sovereign wealth fund told Bloomberg in an interview published on Monday.
The fund has recently hired three people in New York, Harald von Heyden, global head of energy and infrastructure at the Norwegian fund, told Bloomberg.
The Government Pension Fund Global (GPFG), which is commonly referred to as ‘Norway’s oil fund’ because it was created with oil and gas revenues, sees bright prospects of owning solar, wind, and grid projects in the U.S. despite the unfavorable current political climate, according to the executive.
“You have political risk everywhere, you just have to be smart,” von Heyden told Bloomberg, when asked whether the Trump Administration’s assault on renewable energy, especially offshore wind, would weigh on market prospects.
“We have to find good deals, first and foremost, but we are optimistic,” von Heyden said.
“This year and last, you’re seeing gigantic projects becoming a reality, not just on the drawing board.”
The manager of the Norwegian fund, Norges Bank Investment Management, in September said it would commit $1.5 billion to Brookfield Asset Management’s latest energy transition fund, in fund’s latest investment in unlisted renewable energy infrastructure.
The commitment to Brookfield’s Global Transition Fund II (BGTF II) “will enable us to invest in projects that develop renewable energy infrastructure while also supporting the broader transition to low-carbon solutions across industries,” von Heyden said back then.
The largest energy asset deal for Norway’s fund so far was a transaction announced in September, in which it agreed to buy 46% in grid operator TenneT Germany from its Dutch owner TenneT in a deal worth up to $11 billion (9.5 billion euros), in consortium with APG, investing on behalf of Dutch pension fund ABP and Singapore’s sovereign wealth fund GIC.
By Michael Kern for Oilprice.com
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