Danish energy giant Ørsted (CPH: ORSTED) has sold a stake in four of its UK wind farms to US energy investor Brookfield (NYSE: BEP) in a deal worth £1.745 billion.
Brookfield will acquire a 12.45 % minority stake in four of Ørsted’s operational UK offshore wind farms: Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension.
© Supplied by OrstedThese projects have a combined total capacity of approximately 3.5 GW, backed by long-term contracts for difference (CfDs) which determine the price paid for energy produced.
The deal comes after it was revealed Ørsted is one of the UK’s largest overseas investors in UK energy infrastructure. Its plans to invest £8bn in the UK was hailed by UK Prime Minister Kier Starmer at a the government’s recent investment summit.
Two leading renewable energy players partner on operational UK offshore wind farms. Brookfield to acquire a 12.45 % stake in 3.5 GW offshore wind portfolio under long-term contracts for difference (CfDs).
Ørsted will retain a 37.55 % ownership interest in the four assets and will “continue to exercise a similar level of control and governance as before the transaction”.
The Danish firm will also continue to oversee the operations and maintenance of the wind farms.
© BloombergGroup president and CEO of Ørsted Mads Nipper said Brookfield is a “leading renewable energy investor with proven investment and operational expertise”.
He added: “Today’s transaction is an important milestone in the farm-down programme as part of our business plan, supporting our significant re-investment in new assets.”
Connor Teskey, CEO of Brookfield Renewable and president of Brookfield Asset Management, said it was the firm’s first investment in UK offshore wind and said the farms were “four high-quality assets that are critical to supplying the UK with renewable power and supporting the country’s decarbonisation objectives”.
Ørsted, the world’s largest offshore wind developer, said the deal makes “significant progress” on its farm-down programme announced as part of the February business plan update while ensuring a high level of value retention within the transaction.
For Brookfield, the investment provides the opportunity to “invest in a scaled, fully operational offshore wind portfolio”.
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