Orsted is to divest its stake in four US onshore wind farms with a total capacity of 957MW to investment firm Stonepeak.
This is the developer’s first partnership with Stonepeak and the second major farm-down of multiple assets in the US.
The value of the transaction is approximately US$300m.
In addition, Orsted has previously raised approximately US$700m in tax equity proceeds for this portfolio, bringing the total proceeds raised to approximately US$1bn.
Going forward, Stonepeak will receive 80% of the cash distributions associated with the projects, while the Danish outfit will continue to operate the portfolio of assets.
As part of the transaction, Orsted retains a unilateral call option for Stonepeak’s interests that can be exercised under certain circumstances after the closing of the transaction.
Executive vice president and chief executive of region Americas at Orsted David Hardy said: ‘This deal signifies the value that our US onshore renewable energy projects can deliver to our investors while also demonstrating the holistic and flexible approach we take to partnerships and divestments.
“While Orsted will continue to operate each asset over its lifetime, we’ll use this capital to fund projects that continue to create the most value for our stakeholders and fuel our growth in the renewable energy sector.”
Stonepeak senior managing director Anthony Borreca added: “The need for efficient infrastructure with the power to further the energy transition continues to grow, and onshore wind continues to play a major role in helping to meet that demand.
“Orsted’s US onshore assets are young and have been built with trusted technology, which gives us confidence in their potential to make a meaningful and positive long-term impact on the communities they serve.
“We look forward to partnering closely with Orsted on this highly contracted, geographically diverse portfolio.”