Ørsted has entered a partnership with Brookfield, alongside Brookfield’s institutional partners and its listed affiliate Brookfield Renewable, to sell a 12.45% minority stake in four of Ørsted’s UK offshore wind farms: Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension. Together, these wind farms have a combined capacity of approximately 3.5 GW. The transaction is valued at GBP 1.745 billion ($2.2 billion) and will be pursued through Brookfield Infrastructure Fund V, the largest closed-end infrastructure fund globally. Subject to regulatory approvals, the deal is expected to close by the end of 2024.
This move aligns with Ørsted’s farm-down program outlined in their February business plan, enabling significant value retention while partnering with Brookfield in the offshore wind sector. The partnership marks Brookfield’s expansion into UK offshore wind assets and aligns with its strategy to invest in mature renewable technologies that complement solar PV and onshore wind.
Post-transaction, Ørsted will retain a 37.55% ownership and maintain operational oversight of the assets, all of which are governed by long-term inflation-linked Contracts for Difference (CfDs).
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.”
Connor Teskey, CEO of Brookfield Renewable and President of Brookfield Asset Management said, “We are pleased to be partnering with Ørsted to invest in four high-quality assets that are critical to supplying the UK with renewable power and supporting the country’s decarbonization objectives. This is Brookfield’s first investment in UK offshore wind, which will continue to be a critical part of the energy mix and to support the growing demand we see for clean energy.”
The agreement includes a call option allowing Ørsted the option, but not the obligation, to repurchase the assets from Brookfield between two and seven years after the transaction closes at a pre-agreed price.
