Hong Kong billionaire Li Ka-shing, already a major player in the UK’s infrastructure, has expanded his influence by purchasing 32 onshore wind farms for £350 million. The deal not only strengthens his hold on Britain’s energy market but also opens opportunities for upgrading these sites with more powerful wind turbines.

Li Ka-shing, Hong Kong’s richest man, has made headlines once again by purchasing a portfolio of 32 onshore wind farms in the UK for a whopping £350 million. This latest acquisition is part of a larger strategy by his company, CK Group, to strengthen its grip on Britain’s energy market.

At 96 years old, Li Ka-shing is still actively expanding his business empire. His CK Group, which is listed in Hong Kong, announced the deal on Wednesday, marking another significant step in their ongoing investment spree in the UK. Over the years, CK Group has acquired several key utility projects across the country, making it one of the largest distributors of gas, electricity, and water in the UK.

Li Ka-shing’s Growing Influence in the UK

Li Ka-shing is no stranger to the UK’s infrastructure scene. His company already owns UK Power Networks, which they bought for £5.5 billion in 2010. This company is responsible for distributing electricity to millions of homes across the UK. Additionally, CK Group owns the Port of Felixstowe, the largest container port in the UK, as well as significant stakes in Northern Gas Networks and Northumbrian Water.

Beyond the UK, CK Group’s influence stretches across the globe, with assets in Canada, Australia, and New Zealand. The purchase of these 32 wind farms only adds to their extensive portfolio, further solidifying their position as a global leader in infrastructure.

The New Wind Farms: Small but Promising

The 32 wind farms acquired by CK Group are relatively small, producing a total of 175 megawatts (MW) of electricity. To put this in perspective, this is less than a fifth of what a typical gas-fired power station can generate. Despite their modest size, these wind farms hold significant potential for the future.

One of the key advantages of these wind farms is the opportunity for “repowering.” This means that the existing wind turbines can be replaced with larger, more efficient ones that can generate more electricity and, consequently, more profit. Repowering is a cost-effective way to increase energy production because the necessary infrastructure, such as roads, cables, and foundations, is already in place. The UK government has recognized the potential of such projects and has announced favorable conditions for these upgrades.

A Strategic Move with Long-Term Benefits

Victor Li, the chair of CK Infrastructure and Li Ka-shing’s elder son, emphasized the strategic nature of this deal. In a statement, he mentioned that CK Infrastructure is in a strong financial position, which allows them to explore new deals and investments confidently. This wind farm acquisition is just one example of how the company is leveraging its resources to secure long-term growth and profitability.

Earlier this year, CK Group also acquired Phoenix Energy, Northern Ireland’s main gas distribution network, for £757 million. In addition, they spent £90.8 million to acquire UU Solar, a company that owns around 70 smaller renewable energy projects. These acquisitions highlight CK Group’s commitment to expanding its presence in the UK’s energy market and investing in renewable energy sources.

The Importance of the UK Market

The UK is a crucial market for CK Group, contributing to a significant portion of the company’s global profits. Last year, the UK arm of CK Group accounted for 36% of its total profits. This latest deal further cements the UK’s importance to the company’s overall success.

There have also been rumors that Li Ka-shing is considering a secondary listing on the London Stock Exchange. While nothing has been confirmed yet, this move could further strengthen CK Group’s ties to the UK and provide additional opportunities for growth.

Looking Ahead: What’s Next for Li Ka-shing?

Li Ka-shing’s latest acquisition of wind farms in the UK is a clear indication that he is not slowing down anytime soon. As the world shifts towards renewable energy, CK Group is positioning itself to be at the forefront of this transition. The potential for repowering the newly acquired wind farms presents a lucrative opportunity for the company to increase its profits while contributing to the global push for cleaner energy sources.

With a strong presence in the UK and a growing portfolio of renewable energy projects, Li Ka-shing and CK Group are set to play a pivotal role in shaping the future of the energy market. As the company continues to explore new deals and investments, it will be interesting to see what other strategic moves they make in the coming years.