Orsted has agreed to sell a 50% stake in its 2,900 MW Hornsea 3 offshore wind farm in the UK to Apollo-managed funds for more than €5 billion, the Danish company said on Tuesday.
The deal includes half of the project’s equity and Apollo’s commitment to fund 50% of engineering, procurement, and construction (EPC) contract payments for both the wind farm and its offshore transmission asset. Orsted said the transaction represents a key milestone in its funding plan, balancing partnership objectives and capital management.
The total transaction value is approximately €5.22 billion, with the overall project investment remaining between €9.37 billion and €10.19 billion. Around €2.68 billion will be paid at closing, split between €1.34 billion under the share purchase agreement and an initial €1.34 billion construction payment. The remaining amount will be disbursed upon achieving certain construction milestones, Orsted said.
Subject to regulatory approvals, the transaction is expected to close by the end of 2025. Orsted will continue to construct Hornsea 3 under a full-scope EPC contract and provide long-term operations, maintenance, and balancing services, as well as a long-term route to market for the power generated.
Trond Westlie, Orsted’s chief financial officer, said: “We’re pleased to welcome Apollo as a partner for Hornsea 3, as they bring infrastructure expertise and scaled capital. We look forward to working with them to deliver this important project that will produce enough electricity to power more than 3 million UK homes once completed and contribute to the renewable transformation of the UK.”
He added: “The divestment represents an important milestone for Orsted as we continue to deliver on our partnership and divestment programme, which is a cornerstone of our business plan.”
Hornsea 3, located 160 km off the Yorkshire coast, will increase the Hornsea zone’s combined capacity to more than 5 GW once fully operational. Orsted said the transaction does not affect its 2025 EBITDA guidance or expected gross investment levels for the year.
