Ørsted Sells Stake in UK Offshore Wind Farms to Brookfield for £1.7bn

Transaction Overview: Ørsted Partners with Brookfield
Ørsted has agreed to divest a 12.45% stake in four of its operational UK offshore wind farms—Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension—to Brookfield Renewable and its affiliates for £1.74 billion. These wind farms have a combined capacity of 3.5GW. The deal marks Brookfield’s entry into the UK offshore wind sector and forms part of Ørsted’s ongoing strategy to partner with renewable energy investors.

Ørsted Retains Majority Stake and Operational Control
As part of the agreement, Ørsted will maintain a 37.55% ownership stake in the assets, retaining operational and governance control. The Danish renewable energy company will also continue handling the operations and maintenance of the four wind farms under existing service agreements. The projects are supported by long-term, inflation-linked Contracts for Difference (CfDs), ensuring stability for both Ørsted and Brookfield.

Brookfield’s Strategic Move in the Renewable Energy Sector
The acquisition is a significant step for Brookfield, marking its first investment in UK offshore wind. According to Connor Teskey, president of Brookfield Asset Management, this move strengthens Brookfield’s portfolio of renewable energy assets, which already includes solar photovoltaic (PV) and onshore wind. The deal aligns with the UK’s renewable energy goals and decarbonization targets, with offshore wind seen as a crucial part of the energy mix.

Ørsted’s Ongoing Farm-Down Strategy and Future Repurchase Option
This deal forms part of Ørsted’s broader farm-down strategy, designed to advance its long-term business plan. Ørsted also retains a call option to repurchase its 12.45% stake within two to seven years at a pre-agreed price. The transaction is expected to close by the end of 2024, pending regulatory approvals.

Recent Equity Sale to Equinor
Earlier in November, Ørsted also completed the sale of a 9.8% minority stake, valued at approximately $2.5 billion, to Norwegian oil and gas company Equinor. This acquisition makes Equinor Ørsted’s second-largest shareholder, holding around 41.2 million shares in the renewable energy giant.