Orsted, a global leader in offshore wind energy, has entered into an agreement with Apollo-managed funds to sell a 50 percent equity stake in its 2.9 GW Hornsea 3 Offshore Wind Farm in the UK. Valued at approximately DKK 39 billion, the deal is a key milestone in Orsted’s funding strategy, balancing partnership objectives with capital management while strengthening the company’s financial structure.
Under the agreement, Apollo will acquire a 50 percent stake in Hornsea 3 and fund half of the payments under the engineering, procurement, and construction (EPC) contract for both the wind farm and its offshore transmission asset.
Orsted will receive an upfront payment of around DKK 20 billion, split between a DKK 10 billion share purchase agreement (SPA) and an initial DKK 10 billion construction payment, with remaining amounts paid progressively as key construction milestones are achieved.
The transaction is expected to be neutral on Orsted’s aggregate lifetime EBITDA and aligns with the expectations outlined in the company’s recent rights issue prospectus. Subject to customary regulatory approvals, the deal is expected to close by the end of 2025.
As part of the agreement, Orsted will continue to construct Hornsea 3 under a full-scope EPC contract and provide long-term operations and maintenance (O&M) services from its East Coast O&M hub. Apollo will benefit from balancing services and a guaranteed route to market for the renewable electricity generated by Hornsea 3.
Trond Westlie, CFO at Orsted, said: “We look forward to working with Apollo to deliver this important project that will produce enough electricity to power more than 3 million UK homes once completed and contribute to the renewable transformation of the UK. The divestment represents an important milestone for Orsted as we continue to deliver on our partnership and divestment programme, which is a cornerstone of our business plan.”
About Hornsea 3
Hornsea 3, with a capacity of 2.9 GW, will generate enough electricity to power over 3 million UK homes. Located 160 km off the Yorkshire coast, the project is progressing on schedule, with onshore and offshore construction and component fabrication underway. Once operational, the Hornsea zone, comprising Hornsea 1, 2, and 3, will have a combined capacity exceeding 5 GW, making it the world’s largest operational offshore wind zone.
Baburajan Kizhakedath