Vestas is to acquire a 25% stake in Copenhagen Infrastructure Partners (CIP) for €500m.
The interest will be in the form of an upfront payment of €180m and €320m as an earnout.
Vestas said the aim of the investment is to create value across a wider range of the renewable value chain.
The transaction is expected to be completed in the first quarter of 2021.
CIP said the transaction proceeds will be committed as re-investments into the company and new funds over the years to come to accelerate growth and innovation and increase co-investments.
It said part of the transaction proceeds to create and co-invest into a new Energy Transition Fund, which will be launched in the first half of 2021, to invest in technologies such as power-to-X.
Vestas will be represented at the CIP Holding board and will, together with the CIP senior partners, focus on the strategic direction of CIP.
The daily management and governance of the CIP-managed funds will continue to be carried out by the CIP Partner Group and investment committee of the individual funds.
CIP said it will not be limited in any way in relation to choosing providers of wind turbines and services and negotiating competitive market terms.
The CIP team will continue to be responsible for project origination, project and investment structuring in order to generate the best possible risk/return profile for the investors in the funds.
CIP managing partner Jakob Baruel Poulsen said: “The transaction marks a major milestone for CIP and our investors.
“It strengthens CIP’s position as a market pioneer and global leader within renewable energy investments and complements our industrial know-how with an even stronger capacity to innovate, lead, and enhance the deployment of institutional capital into investments in the global energy transition towards a net zero carbon economy.”
Vestas chief executive Henrik Andersen said: “As a leader in sustainable energy solutions, Vestas is determined to play a role in driving the global transition towards a decarbonised energy system.
“To do so, we must increase our involvement across the renewable value chain and benefit from value creation across technology providers, developers and owners.
“Our investment in CIP enables us to achieve these goals.
“I am therefore very excited to begin this new journey with a global leader like CIP.”
CIP senior partner and responsible for offshore wind activities Torsten Lodberg Smed said: “The first eight years of CIP have been successful and the next decade will likely be even more exciting as growth in renewable power generation accelerates, driven by commitments to ambitious renewable targets in major economies.
“Offshore wind will grow to become an important part of the energy mix across continents driven by technological progress such as larger turbines and floating foundations.
“The transaction with Vestas enables CIP to remain in front and invest significantly across the globe.”
CIP senior partner leading the asset management activities Christina Grumstrup Sorensen said: “In order to reach the critical point of net-zero emissions, the growth within electrification needs to be complemented by decarbonisation of fuels to transportation, feedstock to industrial sectors, and production of green ammonia as fertiliser for agriculture.
“Vestas and CIP share this strategic perspective alongside a joint ambition to continue to develop CIP into the leading platform for institutional investors seeking to deploy capital directly into some of the largest and leading edge energy projects across the world.”