In a recent development, Ørsted, the Danish renewable energy company, has reached an agreement with funds managed by Schroders Greencoat to divest its remaining 25% minority interest in the renowned 630MW London Array Offshore Wind Farm in the United Kingdom. The transaction, valued at £717 million (approximately DKK 6.17 billion), is set to further Ørsted's capital recycling strategy and contribute to its ambitious investment program.
The London Array Offshore Wind Farm, which commenced its commercial operations in 2013, has been a significant renewable energy asset for Ørsted. Initially holding a 50% stake in the project, Ørsted had previously divested 25% of its interest to CDPQ in 2014. With Ørsted having no operational and maintenance responsibilities at London Array, the company now views the asset as non-strategic, prompting the decision to divest the remaining minority interest.
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Daniel Lerup, the Chief Financial Officer at Ørsted, expressed satisfaction in finding a strong new owner for their remaining stake in London Array. He emphasized the growing appetite for offshore wind as an attractive asset class, reaffirming Ørsted's commitment to the UK offshore wind market. The company aims to make significant future investments in the country's ongoing green transformation, both onshore and offshore.
The transaction, which is expected to conclude at the end of July, will see the gain from the divestment being accounted for as part of ‘EBITDA from new partnerships.' This move aligns with Ørsted's overall financial strategy and positions them to efficiently fund their sizeable DKK 475 billion investment program, slated for realization by 2030.
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As the offshore wind sector continues to thrive, Ørsted's strategic divestment in London Array represents a notable milestone for the renewable energy industry. The company's unwavering commitment to sustainable energy solutions ensures that it remains a key player in the global transition towards greener and more environmentally conscious economies.
