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DONG Energy Builds Wind Farm in Northern Norway

Source: 8/7/2009, Location: Europe

DONG Energy has decided to build and run the Norwegian onshore wind farm Nygardsfjell 2 in the Narvik municipality in Northern Norway. The wind farm is owned by the company Nordkraft Vind AS, which is owned 50/50 together with the Norwegian company Nordkraft. The farm will have a capacity of between 25.3 and 33 MW. Since 2002 DONG Energy has owned 33% of the hydropower company Nordkraft, and therefore totally owns 67% of Nygardsfell 2.

On 9th June 2009 Nordkraft Vind received approval from the Norwegian authorities via ENOVA of a facility grant of DKK 169 million for the project. The expected total investment in Nordkraft Vind before facility grant is DKK 0.3 billion.

“The Nygardsfjell 2 wind farm represents yet another important step towards our ambition to triple our production of renewable energy by 2020. At the same time the Nygardsfjell 2 will strengthen our industrial ownership in the Nordkraft Group,” says Christina Grumstrup S?rensen, Vice President for Wind Development and Construction in DONG Energy.

“The implementation of Nyg?rdsfjell 2 will boost the Nordkraft Group wind farm venture. It will contribute to achieving our vision of becoming a leading player in the renewable energy sector in Northern Norway and of reaching the goal of producing 300 GWh generated by wind power over the next 10 years. With Nyg?rdsfjell 2, we will expand our fruitful partnership with DONG Energy and their knowledge of wind farms, through Nordkraft Vind AS,“ says Olaf Larsen, CEO of Nordkraft.

Nyg?rdsfjell 2 will help to further develop DONG Energy's experience of setting up onshore farms in mountainous terrain. DONG Energy is already in the process of erecting the Storrun wind farm in similar terrain in Sweden, and also owns half of the 6.9 MW Norwegian demonstration farm Nyg?rdsfjell 1, which has been operating since 2005.

The content of this release does not alter previously announced expectations of financial results for 2009 or of announced expected levels of investment.

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