Today, Ørsted has entered into an agreement with Apollo-managed funds (‘Apollo‘) for a 50 % equity ownership share in Ørsted’s 2.9 GW Hornsea 3 Offshore Wind Farm in the UK.
The transaction represents a key milestone in Ørsted’s funding plan and balances the key objectives for partnerships and divestments with an emphasis on capital management. The transaction supports a further strengthening of Ørsted’s capital structure and ensures significant progress on its partnership and divestment programme.
The transaction covers the acquisition of a 50 % equity ownership share and the commitment from Apollo to fund 50 % of the payments under the EPC contract for the wind farm and the offshore transmission asset. The total value of the transaction is approx. DKK 39 billion, and the total project investment remains in the range of DKK 70–75 billion. Approx. DKK 20 billion of the total transaction value will be paid upon closing of the transaction, which is split between a share purchase agreement (SPA) price of approx. DKK 10 billion, covering both the generation and transmission assets, and an initial payment under the construction agreement of approx. DKK 10 billion. The remaining amount is expected to be paid under the construction agreement upon achievement of certain construction milestones. The upfront, non-cash EBITDA effect of the transaction is in line with the expectations outlined in the prospectus of the recently completed rights issue, and the expected aggregate lifetime EBITDA effect remains neutral.
Subject to customary regulatory approvals, the transaction is expected to close before the end of the year.
As part of the agreement, Ørsted will construct the Hornsea 3 project under a full-scope EPC contract as well as provide long-term operations and maintenance (O&M) services from its East Coast O&M hub. Furthermore, Ørsted will provide the incoming partner with balancing services and a long-term route to market for the renewable electricity generated from Hornsea 3.
Trond Westlie, Chief Financial Officer at Ørsted, said:
“We’re pleased to welcome Apollo as a partner for Hornsea 3, as they bring infrastructure expertise and scaled capital. We look forward to working with them to deliver this important project that will produce enough electricity to power more than 3 million UK homes once completed and contribute to the renewable transformation of the UK. The divestment represents an important milestone for Ørsted as we continue to deliver on our partnership and divestment programme, which is a cornerstone of our business plan.”
The information provided in this announcement does not change Ørsted’s previous EBITDA guidance for the financial year of 2025 nor the expected gross investment level for the year.
Facts about Hornsea 3
With a capacity of 2.9 GW, Hornsea 3 will produce enough electricity to power more than 3 million UK homes, and the construction of the project is progressing according to schedule for onshore and offshore activities and component fabrication.
Hornsea 3 is located 160 km off the Yorkshire coast in Northern England. When the wind farm comes online, Ørsted’s Hornsea zone– comprising Hornsea 1, 2, and 3 – will have a total capacity of more than 5 GW, making it the world’s largest operating offshore wind zone.
For further details on the transaction structure and financial impact, please follow the following link: Annual reports and presentations | Ørsted
For further information, please contact:
Global Media Relations
Michael Korsgaard
+45 99 55 95 52
mikon@orsted.com
Investor Relations
Valdemar Hoegh Andersen
+45 99 55 56 71
Ir@orsted.com
About Ørsted
Ørsted is a global leader in developing, constructing, and operating offshore wind farms, with a core focus on Europe. Backed by more than 30 years of experience in offshore wind, Ørsted has 10.2 GW of installed offshore capacity and 8.1 GW under construction. Ørsted’s total installed renewable energy capacity spanning Europe, Asia Pacific and North America exceeds 18 GW across a portfolio that also includes onshore wind, solar power, energy storage, bioenergy plants, and energy trading. Widely recognised as a global sustainability leader, Ørsted is guided by its vision of a world that runs entirely on green energy. Headquartered in Denmark, Ørsted employs approximately 8,000 people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2024, the group's operating profit excluding new partnerships and cancellation fees was DKK 24.8 billion (EUR 3.3 billion). Visit orsted.com or follow us on LinkedIn and Instagram.