The operators of the Walney Extension wind farm have announced an investment company is to take a stake in the Cumbrian site and three other offshore wind farms.
Ørsted has signed a partnership agreement with Brookfield, its institutional partners, and its listed affiliate Brookfield Renewable who will acquire 12.45% minority stakes in four of Ørsted’s operational UK offshore wind farms.
As well as Walney the deal includes Hornsea 1, Hornsea 2, and Burbo Bank Extension, which together have a combined total capacity of approximately 3.5 GW.
The value of the transaction is said to be worth £1.745 billion and is expected to be completed by the end of 2024 subject to regulatory approvals.
Ørsted will retain a 37.55% ownership interest in all four farms and the company says it will continue to exercise a similar level of control and governance as before the transaction.
Ørsted will also continue to oversee the operations and maintenance of the wind farms, according to the current service agreements.
“We’re pleased to welcome Brookfield, a leading renewable energy investor with proven investment and operational expertise, as a partner in four UK offshore wind farms in one of Ørsted’s core strategic markets,” Mads Nipper, group president and CEO of Ørsted, said.
“Today’s transaction is an important milestone in the farm-down programme as part of our business plan, supporting our significant re-investment in new assets.”
Earlier this year Ørsted announced the company would be looking for business partners.
“We are pleased to be partnering with Ørsted to invest in four high-quality assets that are critical to supplying the UK with renewable power and supporting the country’s decarbonisation objectives,” Connor Teskey, CEO of Brookfield Renewable and president of Brookfield Asset Management, said.
“This is Brookfield’s first investment in UK offshore wind, which will continue to be a critical part of the energy mix and to support the growing demand we see for clean energy.”
The agreement includes a call option, providing Ørsted with the opportunity, but no obligation to, repurchase the assets from Brookfield between two and seven years after the closing of the transaction at a pre-agreed price.
As the leading offshore wind developer in the UK, Ørsted currently operates more than 5 GW of offshore wind capacity and has an additional 5 GW under construction or in development, including the Hornsea 3 and Hornsea 4 projects.
