Ørsted has announced the sale of a 50% equity stake in three onshore renewable energy projects in the US to Energy Capital Partners (ECP), an investor in energy transition initiatives and the largest private owner of power generation and renewable assets in the US.
The divestment includes Mockingbird Solar (468 MW) and Sparta Solar (250 MW), two solar farms in Texas, and Eleven Mile Solar Center- a hybrid project in Arizona featuring 300 MW of solar power and 300 MW/1,200 MWh of battery storage.
All three projects, set to commence operations in 2024, have secured tax equity partnerships and power purchase agreements (PPAs).
The transaction is valued at $572m and aligns with Ørsted’s divestment programme, which aims to generate proceeds to advance the company’s mid- and long-term objectives. Ørsted will retain a 50% equity interest in the projects and continue operating them throughout their lifespans.
Due to the involvement of different project companies, the financial impact of the transaction will be recognised in two reporting periods: Q4 2024 and Q1 2025, subject to certain conditions precedent.
Earlier in 2024, Ørsted raised approximately $734m in upfront proceeds for these projects through a tax equity partnership with JP Morgan. Additionally, Ørsted signed its first long-term tax credit transfer agreement for Mockingbird Solar.
Combining the proceeds from the recent divestment and earlier tax equity funding, Ørsted has secured over $1.3bn for the three projects.
Ørsted Americas commercial head James Giamarino said: “These transactions reflect our close engagement with a range of commercial partners, including our tax equity and transferability partners, which are all key to the growth of Ørsted’s U.S. onshore portfolio.
“As we make further progress on our growth ambitions, we’ll use this recycled capital to continue the buildout of projects that create long-term value for our partners.”
This divestment further strengthens Ørsted’s collaboration with ECP, which acquired a 50% equity stake in three wind farms and one solar farm in 2022. That transaction marked Ørsted’s initial farm-down in the U.S. onshore market.
Once Mockingbird Solar, Sparta Solar, and Eleven Mile Solar Center are operational, Ørsted’s onshore renewable energy portfolio will exceed 6 GW, comprising wind, solar, and battery storage projects either in operation or under construction across the United States.
This divestment underscores Ørsted’s commitment to advancing renewable energy infrastructure and maintaining its leadership in the global energy transition.
