Ørsted has announced it has entered into a sale agreement with Apollo-managed funds for a 50% stake in the 2.9 GW Hornsea 3 offshore wind farm located 160 kilometers off the coast of Yorkshire, UK. The total value of the transaction is approximately DKK 39 billion ($5.43 billion), marking a major step in Ørsted’s asset transfer strategy.
The agreement includes Apollo’s acquisition of 50% of the project’s equity, as well as a commitment to fund 50% of the payments under the engineering, procurement, and construction (EPC) contract for both the production and transmission assets offshore. The total value of the project remains in the range of DKK 70 billion to DKK 75 billion. Around DKK 20 billion of the total transaction value will be paid upon closing, split between a share purchase agreement price and an initial payment under the construction agreement.
Strengthening Ørsted’s Financial Structure
This transaction is part of Ørsted’s financing plan, which includes targeted asset sales to strengthen its capital structure. The upfront, non-cash EBITDA effect is in line with the expectations outlined in Ørsted’s recently completed rights issue. The expected overall lifetime EBITDA effect remains neutral.
The transaction is subject to customary regulatory approvals and is expected to close by the end of the year. Ørsted will retain a central role in the project, overseeing the full construction of the wind farm and providing long-term operations and maintenance services from its East Coast UK hub.
Structuring a Major Offshore Wind Asset in the North Sea
With a capacity of 2.9 GW, Hornsea 3 will provide electricity to more than 3 million UK households. The site is Ørsted’s third development in the Hornsea zone, following Hornsea 1 and Hornsea 2. Once completed, this zone will become the world’s largest operating offshore wind zone, with a total capacity exceeding 5 GW.
Ørsted also stated that the transaction does not alter its earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for the 2025 financial year, nor its expected gross investment level for the year. In addition, Ørsted will continue to provide Apollo with balancing services and a long-term route to market for the renewable electricity generated by the wind farm.
