Ørsted sells stake in offshore wind farm for $456 million

Published 01/05/2025, 07:04
Ørsted sells stake in offshore wind farm for $456 million

COPENHAGEN - Danish energy company Ørsted A/S (NASDAQ:ORSTED) has completed the sale of a 24.5% stake in the West of Duddon Sands Offshore Wind Farm to investment funds managed by Schroders (LON:SDR) Greencoat. The deal, valued at GBP 456.1 million (approximately DKK 4 billion) on a debt-free basis, was finalized on April 30, 2025.

The wind farm, situated 14 km off the UK west coast, has been operational since 2014 and boasts a capacity of 389 megawatts. The sale to Schroders Greencoat, a notable player in renewable infrastructure with over 7 GW of net generating capacity and GBP 9.6 billion in assets under management, marks a continuation of the partnership between the two entities. Schroders Greencoat already partners with Ørsted on four other offshore wind farms.

This transaction is part of Ørsted’s ongoing strategy to strengthen its capital structure through partnerships and divestments, allowing for risk diversification and capital recycling. Post-sale, Ørsted will retain a 25.5% interest in the wind farm and will continue to operate it under the existing operations and maintenance agreement.

Trond Westlie, Group CFO of Ørsted, commented on the importance of farm-downs and partnerships in Ørsted’s business model, highlighting the strategic fit of the transaction with the company’s objectives.

Ørsted is a leading offshore wind developer in the UK, currently operating over 5 GW of offshore wind capacity, with an additional 5 GW under construction or in development. The company has a significant global footprint, with 18.5 GW of installed renewable energy capacity and more than 8 GW under construction.

The company’s vision is to create a world powered entirely by green energy. Ørsted is recognized for its climate action efforts and is the first energy company to have a science-based net-zero emissions target validated by the Science Based Targets initiative (SBTi).

The information for this article is based on a press release statement from Ørsted A/S.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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