Orsted has agreed to sell a 50% stake in its 2900MW Hornsea 3 offshore wind farm in the UK to Apollo-managed funds for over €5bn.
Orsted said the transaction represents a key milestone in its funding plan and balances the objectives for partnerships and divestments with an emphasis on capital management.
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 added.
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.
Subject to customary regulatory approvals, the transaction is expected to close before the end of the year.
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.
“We’re pleased to welcome Apollo as a partner for Hornsea 3, as they bring infrastructure expertise and scaled capital,” said Trond Westlie, chief financial officer at Orsted.
“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.”
“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,” Westlie added.
Orsted said the announcement does not change its previous 2025 EBITDA guidance or expected gross investment level for the year.
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.