Ørsted has completed the sale of a 50% stake in its 2.9-gigawatt (GW) Hornsea 3 offshore wind project in the UK to funds managed by Apollo, valuing the transaction at about €5.22 billion, the Danish renewable energy developer said.
The deal marks a key step in Ørsted’s funding strategy for the project, one of the world’s largest offshore wind farms under development. It includes the transfer of a 50% equity ownership interest as well as Apollo’s commitment to fund half of the engineering, procurement and construction (EPC) payments for both the wind farm and the associated offshore transmission assets.
“The transaction represents a key milestone in the Danish developer’s funding plan,” Ørsted said when the agreement was announced earlier this year.
Of the total transaction value, around €2.68 billion is being paid at closing. This comprises roughly €1.34 billion under the share purchase agreement for the generation and transmission assets, along with an initial €1.34 billion construction payment. The remaining consideration will be paid under the construction agreement once certain construction milestones are reached, Ørsted said.
Total investment in the Hornsea 3 project is expected to be in the range of €9.37 billion to €10.19 billion. Ørsted will remain responsible for constructing the project under a full-scope EPC contract and will also provide long-term operations and maintenance services, balancing services and a long-term route to market for the electricity produced.
Hornsea 3 is located about 160 km off the Yorkshire coast. Once operational, it will lift the combined capacity of the Hornsea zone to more than 5 GW, reinforcing the UK’s position as a leading offshore wind market.
