Norway wealth fund makes first investment in renewable energy project

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FILE PHOTO: A general view of the Norwegian central bank, where Norway’s sovereign wealth fund is situated, in Oslo, Norway, March 6, 2018. REUTERS/Gwladys Fouche/File Photo

OSLO (Reuters) – Norway’s $1.3 trillion sovereign wealth fund, the world’s largest, has made its first direct investment in a renewable energy project, a new asset class for the fund, it said on Wednesday.

The fund bought a 50% stake in the Borssele 1 and 2 wind farm off the Netherlands for 1.375 billion euros ($1.63 billion)from Denmark’s Orsted , it said.

It is the world’s second-largest offshore wind farm in operation.

Such direct investments are new for the fund which, until last year, was only allowed to invest in stocks, bonds and real estate.

Graphic: Market value of Norway’s wealth fund –

Reporting by Gwladys Fouche in Oslo and Nikolaj Skydsgaard in Copenhagen, editing by Terje Solsvik