Brookfield pays Orsted $2.3bn for stake in UK offshore wind farms
Divestments are part of Danish developer's divestment programme announced earlier this year in the wake of massive losses from cancellation of US projects
Orsted will sell a minority stake in four UK offshore wind farms to asset manager Brookfield for £1.75bn ($2.3bn) as part of its divestment programme announced earlier this year.
The Canadian investment giant and its listed affiliate Brookfield Renewable will acquire a 12.45% stake in the already operational Hornsea 1, Hornsea 2, Walney Extension and Burbo Bank extension arrays, which have a combined capacity of about 3.5GW.
“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 Orsted’s core strategic markets,” Orsted CEO Mads Nipper said.
“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.”
The transaction through the Brookfield Infrastructure Fund V is expected to close by the end of this year, subject to regulatory approval. The agreement includes a call option, providing Orsted with the opportunity to repurchase the assets from Brookfield between two and seven years after the transaction's closing at a pre-agreed price.
“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,” said Connor Teskey, CEO of Brookfield Renewable and president of Brookfield Asset Management.
Orsted will keep a 37.55 % ownership interest in the four wind farms and said it will continue to exercise a similar level of control and governance as before the transaction. The utility will also continue to oversee the operations and maintenance of the wind farms.
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