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Ørsted has entered into an agreement with Apollo-managed funds (Apollo) for a 50 per cent equity ownership share in the company’s 2.9 GW Hornsea 3 offshore wind farm in the UK.
The total value of the transaction is approximately DKK 39 billion (about EUR 5.2 billion), and the total project investment remains in the range of DKK 70-75 billion.
The Hornsea 3 transaction is subject to regulatory approvals and is anticipated to close before year-end. Apollo is expected to invest approximately USD 3.25 billion upon close, with the remaining USD 3.25 billion to be funded as the project reaches certain construction and development milestones in the coming years.
“We’re pleased to welcome Apollo as a partner for Hornsea 3, as they bring infrastructure expertise and scaled capital. We look forward to working with them to deliver this important project that will produce enough electricity to power more than 3 million UK homes once completed and contribute to the renewable transformation of the UK,” said Trond Westlie , Ørsted Group CFO.
As part of the agreement, Ørsted will construct the Hornsea 3 project under a full-scope EPC contract as well as provide long-term operations and maintenance (O&M) services from its East Coast O&M hub.
Furthermore, Ørsted will provide the incoming partner with balancing services and a long-term route to market for the renewable electricity generated from the wind farm.
“At Apollo, we look to serve as a scaled provider of long-term and flexible capital solutions for leading companies and infrastructure. We are pleased to partner with Ørsted on this transaction where Apollo Fund capital can help to power over 3 million UK homes,” said Leslie Maponder a, Apollo Partner and Co-Head of European Credit.