Orsted has completed a farm-down transaction involving a 24.5% stake in its 389-megawatt (MW) West of Duddon Sands Offshore Wind Farm to funds managed by Schroders Greencoat. The transaction, valued at £456 million on a debt-free basis, marks a further step in Orsted’s ongoing partnership and divestment strategy.
Following the sale, Orsted will retain a 25.5% pro-rata interest in the wind farm and continue to operate the site under the existing operations and maintenance agreement. The West of Duddon Sands wind farm, which has been operational since 2014, is located approximately 14 km off the UK’s west coast.
Schroders Greencoat, a leader in renewable infrastructure investments, manages assets with a combined generating capacity of over 7 gigawatts (GW) and £9.6 billion in assets under management. This new stake adds to the existing portfolio of four Orsted offshore wind farms in which Schroders Greencoat is a partner, including Walney, Burbo Bank Extension, Hornsea 1, and Borkum Riffgrund 1.
Trond Westlie, Group CFO of Orsted, stated, “Farm-downs and partnerships are an integral part of Ørsted’s business model, and we’re pleased to expand our partnership with Schroders Greencoat, who has a proven track record in managing renewable energy infrastructure assets and is a highly valued partner to Ørsted. With today’s announcement, we continue to deliver on our farm-down programme with a transaction that meets our strategic objectives for partnerships and divestments in terms of value creation, risk diversification, and capital recycling.”
Orsted, which operates over 5GW of offshore wind capacity in the UK, is also advancing an ambitious construction programme to nearly double its offshore wind capacity, including the development of the Hornsea 3 and Hornsea 4 projects, both of which have secured Contracts for Difference (CfDs).
This transaction further strengthens Orsted’s ability to maintain a robust capital structure and manage risks, while supporting its ongoing efforts to expand its offshore wind portfolio.
