Energy group Ørsted has announced the completion of the divestment of 24.5% of its stake in the West of Duddon Sands offshore wind farm, located approximately 14 kilometres off the west coast of the United Kingdom. The transaction, closed on 30 April, was conducted with funds managed by Schroders Greencoat for GBP456.1mn ($571mn) on a debt-free basis.
Commissioned in 2014, the West of Duddon Sands wind farm has an installed capacity of 389 megawatts (MW). Following the transaction, Ørsted retains a pro-rata consolidated interest of 25.5% and continues to act as operator under the existing operations and maintenance agreement.
A strengthened partnership with Schroders Greencoat
The deal deepens the existing collaboration between Ørsted and Schroders Greencoat, who are already co-investors in four other Ørsted offshore projects: Walney, Burbo Bank Extension, Hornsea 1 and Borkum Riffgrund 1. Schroders Greencoat currently manages a renewable infrastructure portfolio with over 7 gigawatts (GW) of net generating capacity and GBP9.6bn ($12bn) in assets under management.
This transaction is part of Ørsted’s ongoing divestment and partnership strategy aimed at maintaining a resilient capital structure, diversifying risk and reallocating capital toward new developments. According to Trond Westlie, Group Chief Financial Officer, this model remains a core element of the company’s business approach.
An ambitious offshore development pipeline
Simultaneously, Ørsted is advancing a self-funded construction programme exceeding 8 GW in offshore wind. The pipeline is expected to nearly double the company’s installed offshore wind capacity. In the United Kingdom, Ørsted currently operates over 5 GW of offshore wind and is developing an additional 5 GW, including the Hornsea 3 and Hornsea 4 projects, both of which have secured Contracts for Difference (CfDs).
Globally, Ørsted has already installed 18.5 GW of renewable energy capacity across offshore wind, onshore wind, solar photovoltaic and battery storage technologies. The group is currently building over 8 GW of additional capacity.
