Ørsted has entered into an agreement with Apollo-managed funds for a 50% equity ownership in the company’s 2.9 GW Hornsea 3 offshore wind farm in the UK.
The transaction is valued at approximately DKK 39 billion (around EUR 5.2 billion), while the total project investment ranges from DKK 70-75 billion.
The Hornsea 3 deal requires regulatory approvals and is expected to conclude before year-end. Apollo plans to invest about USD 3.25 billion at closing, with the remaining USD 3.25 billion to be provided as the project advances through construction milestones.
“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,” said Trond Westlie, Ørsted Group CFO.
Ørsted will build the Hornsea 3 project under a full-scope EPC contract and offer long-term operations and maintenance services from its East Coast O&M hub.
Additionally, Ørsted will supply the partner with balancing services and a long-term market route for the wind farm’s renewable electricity.
“At Apollo, we aim to serve as a scaled provider of long-term and flexible capital solutions for leading companies and infrastructure. We are pleased to partner with Ørsted where Apollo Fund capital can help power over 3 million UK homes,” said Leslie Mapondera, Apollo Partner and Co-Head of European Credit.
Senior financing for this transaction is led by Apollo-managed entities, with underwriting by BNP Paribas, ING Bank, Lloyds, and RBC Capital Markets.
Hornsea 3 is Ørsted’s third gigawatt-scale project in the North Sea’s Hornsea zone, comprising around 200 Siemens Gamesa 14 MW turbines located approximately 160 kilometers off the Yorkshire coast.
Recently, the second offshore converter station topside began its journey from Aibel’s Thailand yard to Europe, with installations at the offshore site slated for 2026.
The 2.9 GW Hornsea 3 offshore wind farm is expected to be operational by 2027.
Original Story at www.offshorewind.biz