Ørsted has signed a transaction divesting its equity ownership stake in a portfolio of four U.S. onshore wind farms with a total 957 MW capacity to Stonepeak.
The portfolio consists of the Ford Ridge Wind project in Illinois, the Helena Wind and Western Trail Wind projects in Texas and the Sunflower Wind project in Kansas. The projects are operational and the company says they have PPAs in place for all or parts of the production capacity.
As part of the transaction, Ørsted retains a unilateral call option for Stonepeak’s interests that can be exercised under certain circumstances after the transaction closing.
“This deal signifies the value that our US onshore renewable energy projects can deliver to our investors while also demonstrating the holistic and flexible approach we take to partnerships and divestments,” says Ørsted’s David Hardy. “While Ørsted will continue to operate each asset over its lifetime, we’ll use this capital to fund projects that continue to create the most value for our stakeholders and fuel our growth in the renewable energy sector.”
The value of the transaction is approximately $300 million, in addition to the $700 million in tax equity proceeds Ørsted says it previously raised for this portfolio.
