Orsted has signed an agreement with Copenhagen Infrastructure Partners (CIP) to sell its entire European onshore renewables business, as the company refocuses on offshore wind in its core European markets.
The transaction, announced on February 3, 2026, finalises Orsted’s divestment programme as planned and significantly strengthens its financial position.
The divestment includes operational onshore assets with a total capacity of 578 megawatts, 248 megawatts currently under construction, and a broader development pipeline spanning multiple European markets. The total value of the transaction is EUR 1.44 billion, equivalent to DKK 10.7 billion, with some relatively minor elements of the consideration payable at predefined later milestones. Subject to regulatory approvals, the transaction is expected to close in the second quarter of 2026.
Transaction valuation and financial impact
The transaction corresponds to a valuation multiple of approximately EUR 1.7 million per megawatt, or around DKK 13 million per megawatt, based on the combined operational and under-construction portfolio. With this divestment, Orsted has now entered into transactions across 2025 and 2026 with total proceeds of around DKK 46 billion, exceeding its stated target of generating more than DKK 35 billion through its partnership and divestment programme.
As part of the decision to divest the European onshore business, Orsted is revising the book value of the assets. The company has recorded goodwill of approximately DKK 1.6 billion from previous acquisitions related to these assets. This goodwill will be written off following the divestment decision and will be reflected in Orsted’s fourth quarter 2025 financial accounts, as the assets are now classified as held for sale.
Divestment programme milestones
In addition to the European onshore transaction valued at DKK 10.7 billion, Orsted completed several other major divestments during 2025. In the first half of 2025, the company closed transactions amounting to approximately DKK 7 billion. In December 2025, Orsted also signed an agreement to divest a 50 percent stake in the Hornsea 3 offshore wind project, generating approximately DKK 10 billion in share purchase agreement proceeds.
A further significant contribution comes from the divestment of a 55 percent stake in the Greater Changhua 2 offshore wind project. This transaction, signed in December 2025, contributes around DKK 16 billion toward Orsted’s partnership and divestment target. Closing is planned upon commissioning of the Greater Changhua 2b project in the third quarter of 2026. The proceeds will include DKK 5 billion in share purchase agreement payments and the assumption of DKK 11 billion in debt from the project financing package already in place.
Additionally, in the fourth quarter of 2025, Orsted completed the divestment of a 49 percent stake in the US onshore Badger Wind project, which has a gross capacity of 250 megawatts. This transaction secured proceeds of approximately DKK 1.8 billion and generated an associated gain of around DKK 0.5 billion.
Strategic focus on offshore wind
The divestment of the European onshore business supports Orsted’s strategic priority of concentrating capital and resources on offshore wind in its core European markets. With substantial offshore wind capacity expected to be tendered across Europe in the coming years, Orsted aims to leverage its scale, expertise, and financial strength to capture long-term growth opportunities.
BABURAJAN KIZHAKEDATH
