Norway’s Equinor has acquired a 9.8% stake valued at around $2.5 billion in Denmark-based renewable energy group Ørsted, making it the second largest shareholder after the Danish government, which holds a controlling stake in the company.

“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,” said Equinor CEO Anders Opedal.

Equinor said it is supportive of Ørsted’s strategy and management, and is not seeking board representation.

“Equinor has a long-term perspective and will be a supportive owner in Ørsted,” said Opedal.

“This is a counter-cyclical investment in a leading developer, and a premium portfolio of operating offshore wind assets.

“The exposure to producing assets complements Equinor’s operated offshore wind portfolio of large projects under development.”

Equinor said: “Ørsted has a net renewable generation capacity of around 10.4 GW, and a gross portfolio of offshore wind projects in execution of around 7 GW.

“The company’s ambition is to achieve a gross installed renewable capacity of around 35 to 38 GW by 2030.

“Equinor’s ownership position has been built over time, through a combination of market purchases and a block trade.

“The current market value of Equinor’s holding in Ørsted is around USD 2.5bn, based on a closing price Friday 4 October of DKK 418 per share and a USD/DKK exchange rate of 6.8.

“Subject to obtaining regulatory approvals under applicable Foreign Direct Investment regulations, Equinor intends to increase its ownership to 10%.

“There are currently no plans to further increase the stake.”