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Orsted has entered into a partnership agreement with Brookfield and its affiliates, including Brookfield Renewable for the acquisition of 12.45% minority stakes in four operational U.K. offshore wind farms: Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension. These farms collectively generate approximately 3.5 GW of power, with the transaction valued at $2.3 billion, netting $570 million to Brookfield Renewable. The deal, facilitated through Brookfield Infrastructure Fund V, the largest infrastructure fund globally, is anticipated to close by the end of 2024, pending regulatory approvals.
This partnership marks a significant step for Ørsted in its farm-down program outlined in its February business plan update, while maintaining substantial value retention. Ørsted will retain a 37.55% stake in the assets and continue to govern and oversee their operations, ensuring continuity in management. This collaboration allows Brookfield to invest in a robust offshore wind portfolio alongside Ørsted, the leading player in this sector. The wind farms are fully operational under long-term, inflation-linked contracts for difference (CfD), enhancing their stability and attractiveness as investment assets.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 U.K. offshore wind farms in one of Ørsted’s core strategic markets. Today’s transaction is an important milestone in the farm-down program 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 U.K. with renewable power and supporting the country’s decarbonization objectives. This is Brookfield’s first investment in U.K. 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.”
