Orsted has completed the sale of a 50% stake in its 2900MW Hornsea 3 offshore wind farm in the UK to Apollo-managed funds for over €5bn.
The transaction represents a key milestone in the Danish developer’s funding plan.
The deal covers a 50% equity ownership share and Apollo’s commitment to fund 50% of EPC contract payments for the wind farm and offshore transmission asset, Orsted said at the time the deal was announced earlier this year..
The total value of the transaction is approximately €5.22bn, while the total project investment remains in the range of €9.37bn–€10.19bn.
Around €2.68bn of the total transaction value will be paid on closing, split between approximately €1.34bn under the share purchase agreement for both generation and transmission assets and an initial €1.34bn construction payment.
The remaining amount is expected to be paid under the construction agreement upon achievement of certain construction milestones, Ørsted stated.
Orsted will construct Hornsea 3 under a full-scope EPC contract and provide long-term operations and maintenance services, as well as balancing services and a long-term route to market for the power generated.
Hornsea 3 is located 160km off the Yorkshire coast and will bring the Hornsea zone’s combined capacity to more than 5GW when it enters operation.