Ørsted has signed a partnership agreement with Brookfield, its institutional partners and its listed affiliate Brookfield Renewable, who will acquire 12.45% minority stakes in four of Ørsted’s operational U.K. offshore wind farms: Hornsea 1, Hornsea 2, Walney Extension and Burbo Bank Extension.
The projects have a combined total 3.5 GW of capacity.
The enterprise value of the transaction is $2.3 billion. Brookfield is pursuing this transaction through Brookfield Infrastructure Fund V, with the deal expected to close by the end of this year.
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. Ørsted will also continue to oversee the operations and maintenance of the wind farms, according to the current service agreements. All four assets are fully operational under long-term inflation-linked contracts for difference (CfD).
“We’re pleased to welcome Brookfield, a leading renewable energy investor with proven investment and operational expertise, as a partner in four U.K. offshore wind farms in one of Ørsted’s core strategic markets,” says Mads Nipper, group president and CEO of Ørsted.
“Today’s transaction is an important milestone in the farm-down program as part of our business plan, supporting our significant re-investment in new assets.”
The agreement includes a call option, providing Ørsted with the opportunity, but no obligation, to repurchase the assets from Brookfield between two and seven years from the closing of the transaction at a pre-agreed price.
