Brookfield is to acquire a 12.45 per cent in minority stake in four of Ørsted’s operational UK offshore wind farms: Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension, which have a combined total capacity of approximately 3.5GW.

Brookfield is pursuing this transaction through Brookfield Infrastructure Fund V, the world’s largest infrastructure fund. The transaction is expected to close by the end of 2024, subject to customary regulatory approvals as the troubled Ørsted looks to shore up finances following difficulties in the US. Ørsted also recently scrapped plans for a new plant in Sweden and sold a ten per cent stake to Equinor.

Ørsted will retain a 37.55 per cent 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).

Mads Nipper, group president and CEO of Ørsted, said: “We’re pleased to welcome Brookfield, a leading renewable energy investor with proven investment and operational expertise, as a partner in four UK offshore wind farms in one of Ørsted’s core strategic markets. 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.”

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.

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