Ørsted has agreed to divest a stake of 12.45% in four of its operational UK offshore wind farms to Brookfield and its affiliates, including Brookfield Renewable in a deal valued at £1.74bn.
The wind farms involved in the deal are Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension. They have a combined capacity of 3.5GW,
Brookfield is carrying out the transaction through its closed-end infrastructure fund, Brookfield Infrastructure Fund V.
Brookfield Asset Management president and Brookfield Renewable CEO Connor Teskey 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 decarbonisation 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.”
This proposed sale forms part of Ørsted’s ongoing farm-down programme, aimed at advancing its business strategy outlined in a February update.
By partnering with Brookfield, Ørsted retains a 37.55% ownership stake in the assets along while maintaining control over operations and governance.
Ørsted will also continue to handle operations and maintenance for all four wind farms under existing service agreements. Each wind farm operates under long-term inflation-linked Contracts for Difference (CfDs).
Ørsted group president and CEO Mads Nipper 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.”
Through the acquisition, Brookfield aims to mark a key entry into the offshore wind sector, complementing its existing investments in solar photovoltaic (PV) and onshore wind.
The agreement includes a call option that enables Ørsted to repurchase its stake between two and seven years post-closing at a pre-agreed price.
Subject to customary regulatory approvals, the deal is expected to close by the end of this year.
Earlier this month, Ørsted agreed to divest a 9.8% minority stake in the company, valued at approximately $2.5bn to Norwegian oil and gas company Equinor. This acquisition gives Equinor ownership of around 41.2 million shares in the Danish renewable energy developer, establishing it as Ørsted’s second-largest shareholder.
