Brookfield Strikes £1.75bn Deal to Acquire Stakes in Four of Ørsted’s UK Offshore Wind Giants

Ørsted has forged a strategic partnership with Brookfield, its institutional allies, and publicly listed partner Brookfield Renewable to acquire minority stakes in four major offshore wind farms: Hornsea 1 and Hornsea 2, along with the Walney Extension and Burbo Bank Extension (depicted above).

This landmark £1.75 billion agreement grants Brookfield a 12.45% stake across these assets, which collectively boast a substantial total capacity of approximately 3.5 gigawatts.

Brookfield is advancing this transaction through its Brookfield Infrastructure Fund V. Pending the usual regulatory green lights, the deal's completion is anticipated by the close of 2024. For Ørsted, this sale marks a pivotal step forward in the farm-down strategy unveiled in their February business update, allowing the Danish energy leader to retain significant value within the deal.

Brookfield's investment brings the advantage of acquiring a robust, fully operational offshore wind portfolio at scale. Following the transaction, Ørsted will hold onto a 37.55% ownership interest in the four assets, ensuring continuity in its control and governance roles.

Under current agreements, Ørsted will also continue managing the wind farms' operations and maintenance. Each asset is fully operational under long-term, inflation-linked contracts for difference (CfDs), securing steady returns amidst fluctuating economic conditions.

Orsted group president and chief executive Mads Nipper 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 Orsted’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, chief executive of Brookfield Renewable and president of Brookfield Asset Management, said, "We are pleased to be partnering with Orsted to invest in four high-quality assets that are critical to supplying the UK with renewable power and supporting the country’s decarbonization 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.”