Core Viewpoint - Aberdeen City Council is suing Federated Hermes over allegations of substantial losses from a £40 million investment in Swedish onshore wind farms, which was claimed to be a conservative investment but was structured in a risky manner [2][3]. Investment Details - The investment involved a portfolio of five onshore wind farms in Sweden, with Federated Hermes managing the funds on behalf of Aberdeen's pension scheme [2][4]. - Aberdeen's pension fund contributed £39 million, while Federated Hermes invested approximately £104 million for a 20% stake in the project [8]. Financial Impact - Aberdeen claims total losses of nearly £34 million, along with nearly £1 million in management fees and expenses related to the investment [3]. - The current estimated value of the investment is around £6.5 million, down from an initial valuation of £104 million [8][9]. Operational Risks - Four of the five wind farms were contracted to sell fixed quantities of power at fixed prices, but low wind conditions could lead to purchasing power at high market prices, exacerbating financial losses [5][6]. - The council alleges that a combination of low power generation and high electricity prices could be "disastrous," with the wind farms also carrying significant debt, increasing the investment's risk [7].

Group 1 - Danish offshore wind developer Orsted has agreed to sell a 55% stake in its Greater Changhua 2 offshore wind farm in Taiwan [1] - The deal is valued at approximately 5 billion [1]

Group 1 - Orsted shares fell over 25% after announcing a 60 billion Danish kroner ($9.4 billion) rights issue due to a "material adverse development" in the U.S. market [1][2] - The adverse development has hindered the company's ability to raise funds from a planned partial divestment of its Sunrise Wind project off the coast of New York [1] - Existing shareholders will have the first refusal on the new shares being offered in the rights issue [2]