Brookfield Acquires Share of Four UK Offshore Wind Farms from Ørsted
Ørsted has partnered with Brookfield in a significant offshore wind deal, selling a 12.45% stake in four operational UK offshore wind farms for an enterprise value of $2.3 billion ($570 million net to Brookfield Renewable). The transaction involves Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension, with a combined capacity of 3.5 GW.
Ørsted will retain 37.55% ownership and maintain operational control of the assets, which operate under long-term inflation-linked contracts. The deal includes a call option for Ørsted to repurchase the assets between two and seven years after closing. The transaction is expected to close by end of 2024, subject to regulatory approvals.
Ørsted ha stabilito una partnership con Brookfield in un importante accordo per l'energia eolica offshore, vendendo una quota del 12,45% in quattro parchi eolici offshore operativi nel Regno Unito per un valore d'impresa di 2,3 miliardi di dollari (570 milioni netti per Brookfield Renewable). La transazione riguarda Hornsea 1, Hornsea 2, Walney Extension e Burbo Bank Extension, con una capacità combinata di 3,5 GW.
Ørsted manterrà il 37,55% della proprietà e manterrà il controllo operativo degli attivi, che operano sotto contratti a lungo termine indicizzati all'inflazione. L'accordo include un'opzione di acquisto per Ørsted per riacquistare gli attivi tra due e sette anni dopo la chiusura. Si prevede che la transazione si chiuda entro la fine del 2024, subordinata alle approvazioni regolatorie.
Ørsted se ha asociado con Brookfield en un acuerdo importante de energía eólica marina, vendiendo una participación del 12.45% en cuatro parques eólicos marinos operativos en el Reino Unido por un valor empresarial de 2.3 mil millones de dólares (570 millones netos para Brookfield Renewable). La transacción incluye Hornsea 1, Hornsea 2, Walney Extension y Burbo Bank Extension, con una capacidad combinada de 3.5 GW.
Ørsted retendrá el 37.55% de la propiedad y mantendrá el control operativo de los activos, que operan bajo contratos a largo plazo vinculados a la inflación. El acuerdo incluye una opción de compra para que Ørsted vuelva a adquirir los activos entre dos y siete años después del cierre. Se espera que la transacción se complete a finales de 2024, sujeta a las aprobaciones regulatorias.
Ørsted는 Brookfield와 협력하여 중요한 해상 풍력 거래를 성사시켰습니다. 이는 영국의 네 개의 운영 중인 해상 풍력 발전소에서 12.45%의 지분을 매각하는 것으로, 기업 가치가 23억 달러(브룩필드 재생 가능 에너지에 순수익 5억 7천만 달러)입니다. 이번 거래는 Hornsea 1, Hornsea 2, Walney Extension 및 Burbo Bank Extension을 포함하며, 총 용량은 3.5 GW입니다.
Ørsted는 37.55%의 소유권을 유지하고 자산의 운영 통제를 계속하며, 이는 장기적 인플레이션 연동 계약 하에 운영됩니다. 이 거래에는 Ørsted가 종료 후 2년에서 7년 사이에 자산을 재매입할 수 있는 콜 옵션이 포함되어 있습니다. 규제 승인에 따라 2024년 말까지 거래가 종료될 것으로 예상됩니다.
Ørsted a créé un partenariat avec Brookfield dans le cadre d'un accord significatif sur l'énergie éolienne offshore, en vendant une participation de 12,45 % dans quatre parcs éoliens offshore opérationnels au Royaume-Uni pour une valeur d'entreprise de 2,3 milliards de dollars (570 millions nets pour Brookfield Renewable). La transaction concerne Hornsea 1, Hornsea 2, Walney Extension et Burbo Bank Extension, avec une capacité totale de 3,5 GW.
Ørsted conservera 37,55 % de la propriété et maintiendra le contrôle opérationnel des actifs, qui fonctionnent sous des contrats à long terme indexés sur l'inflation. L'accord comprend une option d'achat permettant à Ørsted de racheter les actifs entre deux et sept ans après la clôture. La transaction devrait se conclure d'ici la fin de 2024, sous réserve des approbations réglementaires.
Ørsted ist eine Partnerschaft mit Brookfield in einem bedeutenden Offshore-Windgeschäft eingegangen und verkauft einen Anteil von 12,45% an vier operativen Offshore-Windparks im Vereinigten Königreich zu einem Unternehmenswert von 2,3 Milliarden US-Dollar (570 Millionen netto für Brookfield Renewable). Die Transaktion umfasst Hornsea 1, Hornsea 2, Walney Extension und Burbo Bank Extension, mit einer Gesamtkapazität von 3,5 GW.
Ørsted wird 37,55% des Eigentums behalten und die operative Kontrolle über die Vermögenswerte aufrechterhalten, die unter langfristigen, inflationsgebundenen Verträgen betrieben werden. Das Geschäft umfasst eine Kaufoption für Ørsted, um die Vermögenswerte zwischen zwei und sieben Jahren nach Abschluss zurückzukaufen. Der Abschluss der Transaktion wird bis Ende 2024 erwartet, vorbehaltlich der regulatorischen Genehmigungen.
- Transaction value of $2.3 billion strengthens company's financial position
- Assets operate under long-term inflation-linked contracts, providing stable revenue
- Ørsted maintains operational control while monetizing minority stake
- Call option provides flexibility to repurchase assets within 2-7 years
- Partnership with major renewable energy investor validates asset quality
- Reduction in ownership stake and associated revenue from key operational assets
- Potential dilution of future earnings from the wind farm portfolio
Insights
This strategic
The deal's structure, including Ørsted's call option between years 2-7, provides financial flexibility while maintaining operational control. For Brookfield Renewable investors, this represents a strategic expansion into the UK offshore wind market, diversifying their renewable portfolio with high-quality assets. The
The acquisition strengthens the UK's offshore wind infrastructure by bringing together two major renewable energy players. These assets are strategically positioned in the UK's energy mix, with the portfolio's 3.5 GW capacity representing a significant portion of the country's offshore wind generation. The continued operational management by Ørsted ensures stability and expertise in asset performance.
The long-term inflation-linked CfDs provide revenue certainty and protect against market volatility, while the partnership model enables efficient capital recycling for future development. This transaction model could become a blueprint for future offshore wind partnerships, facilitating continued sector growth while maintaining operational excellence.
- Two leading renewable energy players partner on operational U.K. offshore wind farms. Brookfield to acquire a
12.45% stake in 3.5 GW offshore wind portfolio under long-term contracts
LONDON, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Ørsted (CPH: ORSTED) has signed a partnership agreement with Brookfield (NYSE: BAM, TSX: BAM), its institutional partners and its listed affiliate Brookfield Renewable (NYSE: BEP, BEPC; TSX: BEP.UN, BEPC), who will acquire
The enterprise value of the transaction is
With this transaction, Ørsted makes significant progress on the farm-down program announced as part of the February business plan update while ensuring a high level of value retention within the transaction. For Brookfield, the investment provides the opportunity to partner with Ørsted, the world’s largest and leading offshore wind player, to invest in a scaled, fully operational offshore wind portfolio. This marks another step in Brookfield’s expansion into the offshore wind sector, which is a mature technology with a complementary generation profile to solar PV and onshore wind.
Ørsted will retain a
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 U.K. offshore wind farms in one of Ørsted’s core strategic markets. Today’s transaction is an important milestone in the farm-down program 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 U.K. with renewable power and supporting the country’s decarbonization objectives. This is Brookfield’s first investment in U.K. 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.”
The agreement includes a call option, providing Ørsted with the opportunity, but no obligation, to repurchase the assets from Brookfield between two and seven years from the closing of the transaction at a pre-agreed price.
As the leading offshore wind developer in the U.K., Ørsted currently operates more than 5 GW of offshore wind capacity and has an additional 5 GW under construction or in development, including the Hornsea 3 and Hornsea 4 projects, both of which have secured CfDs. Globally, Ørsted has installed 15.4 GW renewable energy across offshore wind, onshore wind, solar PV, and battery storage, and has 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
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.
Contact Information
Ørsted
| Media: | Investors: |
| Tom Christiansen | Rasmus Keglberg Hærvig |
| Tel: +45 99 55 60 17 | Tel: +45 99 55 90 95 |
| Email: tomlc@orsted.com | Email: IR@orsted.com |
Brookfield
| Media: | Investors: |
| Simon Maine | Alex Jackson |
| Managing Director | Vice President |
| Corporate Communications | Investor Relations |
| Tel: +44 739 890 9278 | Tel: +1 416 649 8196 |
| Email: simon.maine@brookfield.com | Email: alexander.jackson@brookfield.com |
Cautionary Statement Regarding Forward-looking Statements
This press release contains certain forward-looking statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believe,” “think,” “expect,” “potential,” “continue,” “may,” “should,” “seek,” “approximately,” “predict,” “intend,” “will,” “plan,” “estimate,” “anticipate,” the negative version of these words, other comparable words or other statements that do not relate strictly to historical or factual matters. Forward-looking statements relate to expectations, estimates, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts, including but not limited to the statements with respect to: the proposed transaction; operation of the business following the closing of the transaction; expansion and growth opportunities resulting from the transaction; and expected timing of closing of the proposed transaction. The forward-looking statements are based on Brookfield’s beliefs, assumptions and expectations, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to Brookfield or are within their control. If a change occurs, Brookfield’s business, financial condition, liquidity and results of operations may vary materially from those expressed in the forward-looking statements. The following factors, among others, could cause actual results to vary from the forward-looking statements: failure to realize the anticipated benefits within the expected timeframes from the proposed transaction; unforeseen liabilities or other costs of the proposed transaction and timing related thereto; availability and cost of financing for the proposed transaction; changes in the assets’ business; any delays or difficulties in receiving regulatory approvals; failure to complete the transaction; and availability, terms and deployment of capital.
All forward-looking statements speak only as of the date of this press release. Brookfield does not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after the date on which such statements were made except as required by law. Past performance is not indicative or a guarantee of future performance. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
FAQ
What is the value of Brookfield's acquisition of Ørsted's UK wind farms?
Which UK offshore wind farms are included in the Brookfield (BEP) acquisition?
When will Brookfield's (BEP) acquisition of Ørsted's wind farms close?
What ownership percentage will Ørsted retain in the UK wind farms after the Brookfield deal?
