Orsted announced its divestment of a 24.5 percent stake in the West of Duddon Sands Offshore Wind Farm to Schroders Greencoat for GBP 456.1 million (approx. DKK 4 billion).
The sale, completed on April 30, 2025, is part of Orsted’s farm-down programme, a core element of its financial and operational strategy that enables the company to fund new developments by selling partial ownership in existing assets.
This approach provides upfront capital while preserving operational control, as evidenced by Orsted’s role as operator of the West of Duddon Sands project, where it retains a 25.5 percent consolidated stake under an existing operations and maintenance agreement.
Located approximately 14 km off the UK’s west coast, West of Duddon Sands has been operational since 2014 with a capacity of 389 MW. The transaction strengthens Orsted’s longstanding relationship with Schroders Greencoat, which already holds positions in four other Orsted offshore wind projects: Walney, Burbo Bank Extension, Hornsea 1, and Borkum Riffgrund 1.
Schroders Greencoat, a key player in renewable energy investments with over 7 GW of generating capacity and GBP 9.6 billion in assets under management, brings financial depth and operational experience that aligns with Orsted’s goal of forming long-term, stable partnerships to support its infrastructure ambitions.
This deal comes at a critical juncture as Orsted is in the midst of executing a self-funded construction programme for over 8 GW of new offshore wind capacity. This programme is set to nearly double the company’s installed offshore capacity and will cement Orsted’s status as the global leader in offshore wind.
The transaction not only delivers immediate value but also contributes to the financial structuring necessary to support such a massive capital-intensive expansion. According to Group CFO Trond Westlie, the farm-down aligns with strategic imperatives by creating value, spreading investment risk, and freeing capital for reinvestment.
The context of this divestment reveals how Orsted is adapting to the growing complexity and financial demands of the offshore wind market. Currently, Orsted operates more than 5 GW of offshore wind capacity in the UK and has an additional 5 GW under construction or development, including Hornsea 3 and Hornsea 4, both of which have secured Contracts for Difference (CfDs).
Globally, Orsted has installed 18.5 GW of renewable energy capacity, spanning offshore and onshore wind, solar PV, and battery storage, with another 8 GW under construction. These figures highlight not only the scale of Orsted’s clean energy ambitions but also the necessity of partnerships like the one with Schroders Greencoat to sustain momentum.
Baburajan Kizhakedath