\u00d8rsted has entered into an agreement with Apollo-managed funds (Apollo) for a 50 per cent equity ownership share in the company\u2019s 2.9\u202fGW Hornsea 3 offshore wind farm in the UK.<\/p>\n
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. <\/p>\n
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. <\/p>\n
\u201cWe\u2019re 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,\u201d said Trond Westlie, \u00d8rsted Group CFO.<\/p>\n
As part of the agreement, \u00d8rsted 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.<\/p>\n
Furthermore, \u00d8rsted will provide the incoming partner with balancing services and a long-term route to market for the renewable electricity generated from the wind farm. <\/p>\n
\u201cAt 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 \u00d8rsted on this transaction where Apollo Fund capital can help to power over 3 million UK homes,\u201d said Leslie Mapondera, Apollo Partner and Co-Head of European Credit. <\/p>\n
\u201cThis is the latest large-scale transaction here in Europe where we are investing behind energy infrastructure, transition assets, AI and other key priorities.\u201d<\/p>\n
The transaction\u2019s senior financing is being led by Apollo-managed entities, and the bank facilities have been underwritten by BNP Paribas, ING Bank, Lloyds, and RBC Capital Markets.<\/p>\n
Hornsea 3 is \u00d8rsted\u2019s third gigawatt-scale project in the North Sea\u2019s Hornsea zone. The offshore wind farm will comprise around 200 Siemens Gamesa\u2019s 14 MW turbines, installed approximately 160 kilometres off the Yorkshire coast.<\/p>\n
Recently, the second offshore converter station topside started its journey from Aibel\u2019s yard in Thailand to Europe. The topsides are planned to be installed at the offshore project site in 2026. <\/p>\n