Danish renewable energy company Ørsted has signed a deal with New York-listed asset management firm Apollo Global Management to sell a 50% share in its 2.9GW Hornsea 3 offshore wind farm in the UK.
The transaction covers the acquisition of a 50% equity ownership share and the commitment from Apollo, which manages more than $800 billion in assets, to fund 50% of the payments under the EPC contract for the wind farm and the offshore transmission asset.
The total value of the transaction is approximately DKK 39bn ($6bn), and the total project investment remains in the range of DKK 70–75bn ($10.8–11.6bn).
Around DKK 20bn ($3.1bn) of the total transaction value will be paid upon closing of the transaction, which is split between a share purchase agreement price of DKK 10bn ($1.54bn), covering both the generation and transmission assets, and an initial payment under the construction agreement of DKK 10bn.
The remaining amount is expected to be paid under the construction agreement upon achievement of certain construction milestones.
Subject to customary regulatory approvals, the transaction is expected to close before the end of the year.
As part of the agreement, Ørsted will construct the Hornsea 3 project under a full-scope EPC contract as well as provide long-term operations and maintenance services from its East Coast O&M hub.
The Danish firm will also provide the incoming partner with balancing services and a long-term route to market for the renewable electricity generated from Hornsea 3.
With a capacity of 2.9GW, Hornsea 3 will produce enough electricity to power more than three million UK homes. It is located 160 km off the Yorkshire coast in Northern England. It is expected to become the world’s biggest offshore wind farm upon completion in 2027.
When the wind farm comes online, Ørsted’s Hornsea zone – comprising Hornsea 1, 2, and 3 – will have a total capacity of more than 5GW, making it the world’s largest operating offshore wind zone.
