Ørsted Partners with Brookfield to Expand Renewable Energy Portfolio in UK Offshore Wind

Ørsted Partners with Brookfield to Expand Renewable Energy Portfolio in UK Offshore Wind

(IN BRIEF) Ørsted has entered a partnership with Brookfield, resulting in Brookfield acquiring a 12.45% minority stake in four of Ørsted’s operational UK offshore wind farms—Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension—totaling approximately 3.5 GW in capacity. Valued at £1.745 billion, the deal is set to close by the end of 2024, subject to regulatory approvals. Ørsted will retain a 37.55% ownership interest and continue managing the farms under existing agreements. The partnership reflects Ørsted’s strategy to further its farm-down program and Brookfield’s expansion into offshore wind, supporting the UK’s renewable energy goals.

(PRESS RELEASE) FREDERICIA, 31-Oct-2024 — /EuropaWire/ — In a significant move for the renewable energy sector, Ørsted (CPH: ORSTED) has announced a partnership with Brookfield (NYSE: BAM, TSX: BAM) and its affiliates, resulting in Brookfield acquiring a 12.45% minority stake in four of Ørsted’s operational offshore wind farms in the UK. These farms—Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension—collectively boast a capacity of approximately 3.5 GW and are backed by long-term Contracts for Difference (CfDs). The deal is valued at £1.745 billion (around DKK 15.7 billion) and is set to close by the end of 2024, pending regulatory approvals.

This transaction represents a notable advancement in Ørsted’s farm-down strategy, which was outlined in the company’s business plan update in February. It also reflects Brookfield’s commitment to enhancing its presence in the offshore wind market, partnering with Ørsted, a recognized leader in the field. Brookfield’s investment comes through its Infrastructure Fund V, the largest closed-end infrastructure fund globally, and signals a strategic expansion into a mature energy technology that complements its existing solar PV and onshore wind portfolios.

Ørsted will maintain a 37.55% ownership interest in these assets, ensuring continued governance and control, while managing operations and maintenance under existing agreements. The wind farms operate under long-term inflation-linked CfDs, providing stable revenue streams.

Mads Nipper, Group President and CEO of Ørsted, expressed enthusiasm about the partnership, stating, “We’re delighted to welcome Brookfield, a prominent player in renewable energy investment, as a partner in our key UK offshore wind farms. This transaction marks an essential milestone in our farm-down program and facilitates significant reinvestment into new assets.”

Connor Teskey, CEO of Brookfield Renewable and President of Brookfield Asset Management, remarked, “We are excited to collaborate with Ørsted in investing in these vital assets, which play a crucial role in supplying renewable energy to the UK and advancing its decarbonization goals. This marks our inaugural investment in UK offshore wind, reinforcing its importance in the clean energy landscape.”

Additionally, the agreement includes a call option that allows Ørsted the right, but not the obligation, to repurchase the assets from Brookfield between two and seven years after the transaction closes, at a pre-established price.

As the UK’s leading offshore wind developer, Ørsted operates over 5 GW of offshore wind capacity and has an additional 5 GW in various stages of development, including the Hornsea 3 and Hornsea 4 projects, which have also secured CfDs. On a global scale, Ørsted has installed 15.4 GW of renewable energy across offshore wind, onshore wind, solar PV, and battery storage, with another 7.7 GW under construction.

About Ørsted
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants. Ørsted is recognised on the CDP Climate Change A List as a global leader on climate action and was the first energy company in the world to have its science-based net-zero emissions target validated by the Science Based Targets initiative (SBTi). Headquartered in Denmark, Ørsted employs approx. 8,400 people. Ørsted’s shares are listed on Nasdaq Copenhagen (Orsted). In 2023, the group’s revenue was DKK 79.3 billion (EUR 10.6 billion). Visit orsted.com or follow us on Facebook, LinkedIn, Instagram, and X.

About Brookfield Asset Management
Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with approximately $1 trillion of assets under management. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors.

Brookfield operates Brookfield Renewable Partners (NYSE: BEP, TSX: BEP), one of the world’s largest publicly traded platforms for renewable power and sustainable solutions. Our renewable power portfolio totals over 34,000 megawatts and our development pipeline stands at approximately 200,000 megawatts. Our portfolio of sustainable solutions assets includes our investments in Westinghouse (a leading global nuclear services business) and a utility and independent power producer with operations in the Caribbean and Latin America, as well as both operating assets and a development pipeline of carbon capture and storage capacity, agricultural renewable natural gas and materials recycling.

Media Contacts:

Ørsted:

Global Media Relations:
Tom Christiansen
+45 99 55 60 17
tomlc@orsted.com

Investor Relations:
Rasmus Keglberg Hærvig
+45 99 55 90 95
IR@orsted.com

Brookfield:

Media Relations:
Simon Maine
Managing Director – Communications
+44 (0)7398 909 278
simon.maine@brookfield.com

Investor Relations:
Alex Jackson
Vice President – Investor Relations
(416)-649-8196
alexander.jackson@brookfield.com

SOURCE: Ørsted