Energy firm Ørsted is selling a 12.45% interest in its UK offshore wind farms to Brookfield for around £1.74bn (€2.1bn).
The deal involves the Brookfield Infrastructure Fund V fund acquiring the interest in the 3.5GW portfolio comprising the Hornsea 1, Hornsea 2, Walney Extension and the Burbo Bank Extension wind farms, all of which are fully operational under long-term inflation-linked contracts for difference.
Ørsted, which will retain a 37.55% ownership interest in the four assets, said the agreement includes a call option, providing Ørsted with the discretionary right to repurchase the assets from Brookfield between two and seven years following the transaction’s closing at a predetermined price.
Mads Nipper, group president and CEO of Ørsted, said: “We’re pleased to welcome Brookfield, a leading renewable energy investor with proven investment and operational expertise, as a partner in four UK offshore wind farms in one of Ørsted’s core strategic markets.
“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.”
Connor Teskey, CEO of Brookfield Renewable and president of Brookfield Asset Management, said: “We are pleased to be partnering with Ørsted to invest in four high-quality assets that are critical to supplying the UK with renewable power and supporting the country’s decarbonisation objectives.
“This is Brookfield’s first investment in UK offshore wind, which will continue to be a critical part of the energy mix and to support the growing demand we see for clean energy.”
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