- Orsted is selling a 12.45% stake in four UK offshore wind projects to Brookfield for £1.745 billion.
- The partnership supports Oersted’s farm-down program and Brookfield’s renewable energy development.
- Ørsted retains majority control and will continue to operate the wind farms.
- Brookfield’s investment marks its entry into the UK offshore wind sector.
In a major renewable energy partnership Orsted sells 12.45% of its four UK offshore wind farms to Brookfield for around £1.7 billion The deal strengthens Orsted’s farm-down strategy and strengthens Brookfield’s renewable energy investment in the UK does The transaction is expected to be completed by the end of 2024, pending regulatory approval.
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Ørsted, the global leader in offshore wind, has announced the sale of a minority stake in four wind farms to Brookfield, and together these wind farms will represent about 3.5 GW of total capacity effective. The transaction, valued at £1.745 billion, is in line with Orsted’s ongoing drive to optimize asset acquisition by focusing on innovative new business
The partnership allows established global asset manager Brookfield a foothold in UK offshore air. Brookfield Infrastructure Fund V, part of Brookfield’s global investment strategy, will lead the acquisition, which will be Brookfield’s first foray into UK offshore wind and support its sustainable investment strategy in the daily. Ørsted will own 37.55% of the property and will continue to be responsible for operations and maintenance, ensuring continuity of management.
Mads Nipper, chief operating officer of Oersted, emphasized the value of welcoming Brookfield as a trusted partner, saying the move represented a milestone in Oersted’s business strategy and cemented the company’s enduring commitment share in the UK market is emphasized. Conor Teskey, CEO of Brookfield Renewable, expressed Brookfield’s interest in investing in assets vital to the UK’s energy needs, and strengthening the country’s transition to low-carbon energy.
These wind turbines operate under long-term contracts (CfDs), providing Ørsted and Brookfield with predictable cash flows based on inflation Ørsted’s option to repurchase assets in two years to seven of them after closing incorporate changes and the possibility of future ownership changes.
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The Orsted and Brookfield joint venture represents an important step forward in the development of offshore wind energy in the UK. As Ørsted continues to expand renewable infrastructure, including the Hornsea 3 and Hornsea 4 developments, this partnership is expected to strengthen the UK’s clean energy transition, and support Ørsted’s renewable energy development.
