Ørsted Partners with Brookfield on UK Offshore Wind Projects

an offshore windfarm
Environment Corporate News Europe Offshore
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Ørsted has entered into a partnership with Brookfield, through which Brookfield will acquire a 12.45% stake in four of Ørsted’s offshore wind farms in the UK: Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension.

Together, these four wind farms boast a total capacity of around 3.5 GW. Brookfield’s investment is valued at £1.745 billion ($2.26 billion), with the deal anticipated to close by the end of 2024, pending regulatory approval.

Post-transaction, Ørsted will hold a 37.55% stake in these assets and maintain the same level of operational control and governance as before. The Danish utility will also continue managing the maintenance and operations under the existing service agreements. Each of the four wind farms operates under long-term inflation-linked contracts for difference (CfDs).

This investment marks Brookfield’s initial venture into offshore wind, a sector that complements solar PV and onshore wind in terms of energy generation.

“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,” said Mads Nipper, group president and CEO of Ørsted.

“This is Brookfield’s first investment in UK offshore wind, which will continue to be a critical part of the energy mix and support the growing demand for clean energy,” added Connor Teskey, CEO of Brookfield Renewable and president of Brookfield Asset Management.

Additionally, Ørsted holds a call option that allows it to repurchase these assets from Brookfield between two and seven years after the transaction closes, based on a predetermined price.

Ørsted currently manages over 5 GW of offshore wind capacity in the UK and has another 5 GW in development, including the Hornsea 3 and Hornsea 4 projects, both of which have secured CfDs. On a global scale, Ørsted has installed 15.4 GW of renewable capacity across offshore wind, onshore wind, solar PV, and battery storage, with an additional 7.7 GW in progress.