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

Ørsted’s Strategic Move in UK Offshore Wind

Ørsted has finalized the sale of a 12.45% stake in four operational UK offshore wind farms to Brookfield Renewable for £1.74 billion. These wind farms—Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension—total 3.5GW in capacity. This sale marks Brookfield’s debut in the UK offshore wind sector and aligns with Ørsted’s plan to partner with renewable energy investors.

Ørsted Retains Control and Eyes Future Repurchase

Despite the sale, Ørsted keeps a 37.55% stake in the wind farms, maintaining operational control. The company will continue to manage operations and maintenance under existing agreements. The wind farms benefit from long-term, inflation-linked Contracts for Difference (CfDs), ensuring financial stability.

This deal is part of Ørsted’s ongoing farm-down strategy to raise capital and accelerate renewable energy projects. Furthermore, Ørsted holds a call option to repurchase its 12.45% stake within two to seven years, at a pre-agreed price.

Brookfield’s Expanding Renewable Energy Portfolio

The acquisition is a significant step for Brookfield, bolstering its portfolio in renewable energy. Brookfield already operates in solar and onshore wind and now strengthens its position in offshore wind. This investment supports the UK’s renewable energy goals and decarbonization targets. Offshore wind is critical for the UK’s green energy transition.

Ørsted’s Ongoing Efforts to Raise Capital

Earlier, Ørsted completed a $2.5 billion deal with Equinor, selling a 9.8% stake. This move makes Equinor Ørsted’s second-largest shareholder, holding around 41.2 million shares. These transactions reflect Ørsted’s strategy of streamlining operations while expanding in the renewable energy space.