Ørsted has entered into an agreement with Apollo-managed funds for a 50 per cent equity ownership share in the 2.9GW Hornsea 3 offshore wind farm in the UK.

Hornsea 3, located 160 km off the Yorkshire coast in Northern England. will be part of Ørsted’s ‘Hornsea Zone’, comprising Hornsea 1, 2, and 3 with a total capacity of more than 5GW, making it the world’s largest operating offshore wind zone.

The transaction supports a further strengthening of Ørsted’s capital structure and ensures significant progress on its partnership and divestment programme as the company seeks a firmer financial footing.

The total value of the transaction is approx. £5bn and covers the acquisition of a 50 per cent equity ownership share and the commitment from Apollo to fund 50 per cent of the payments under the EPC contract for the wind farm and the offshore transmission asset.

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 (O&M) services from its East Coast O&M hub. Furthermore, Ørsted will provide the incoming partner with balancing services and a long-term route to market for the renewable electricity generated from Hornsea 3.

Trond Westlie, CFO at Ørsted, said: “We’re pleased to welcome Apollo as a partner for Hornsea 3, as they bring infrastructure expertise and scaled capital. We look forward to working with them to deliver this important project that will produce enough electricity to power more than three million UK homes once completed and contribute to the renewable transformation of the UK. The divestment represents an important milestone for Ørsted as we continue to deliver on our partnership and divestment programme, which is a cornerstone of our business plan.”

---