Ørsted has agreed to sell a half-share of its 2.9 GW Hornsea 3 offshore wind farm to Apollo-managed funds.
Hornsea 3 is located 160 km off the Yorkshire coast. When the wind farm comes online, Ørsted’s Hornsea zone – comprising Hornsea 1, 2, and 3 – will have a total capacity of more than 5GW, making it the world’s largest operating offshore wind zone.
The transaction covers the acquisition of a 50% equity ownership share and a commitment from Apollo to fund 50% of the payments under the EPC contract for the wind farm and the offshore transmission asset. The total value of the transaction is around £4.6 billion (DKK 39 billion), and Ørsted said the total project investment remains in the range of £8.2-8.8 billion. DKK 70–75 billion. The transaction is expected to close before the end of the year.
As part of the agreement, Ørsted will construct the Hornsea 3 project under a full-scope EPC contract as well as provide long-term operations and maintenance (O&M) services from its East Coast O&M hub. Ørsted will also provide the incoming partner with balancing services and a long-term route to market for the renewable electricity generated from Hornsea 3.
Trond Westlie, Chief Financial Officer at Ørsted, said: “The divestment represents an important milestone for Ørsted as we continue to deliver on our partnership and divestment programme, which is a cornerstone of our business plan.”