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Danish renewable energy company Orsted has agreed to sell a 50 percent stake in Britain�s Hornsea 3 offshore wind project to Apollo Global Management for about DKK 39 billion (around USD 6 billion). As part of the deal, Apollo will also fund half of the remaining construction costs. The project, with a total capacity of 2.9 GW, is expected to supply power to over three million UK homes once completed in 2027. The sale forms part of Orsted�s broader plan to strengthen its balance sheet and manage rising development costs.
Orsted has entered into a definitive agreement to sell a 50 percent ownership in its Hornsea 3 offshore wind farm to funds managed by Apollo Global Management. The transaction is valued at around DKK 39 billion (approximately USD 6 billion). Advertisement
Under the agreement, Apollo will not only acquire half of the equity but also contribute 50 percent of the remaining capital required for the project?s construction. Orsted will retain the other half of the ownership and continue as the project?s developer, operator, and maintenance service provider once the wind farm becomes operational.
Hornsea 3, located roughly 160 kilometres off the Yorkshire coast in the North Sea, has a total planned capacity of 2.9 gigawatts. When completed, it is expected to generate enough clean electricity to power more than three million UK homes, making it one of the world?s largest offshore wind installations. The project is expected to be fully operational by 2027 and will play a key role in advancing the UK?s renewable energy targets.
Orsted stated that the sale is a significant step in its ongoing funding plan, helping to balance capital management priorities while maintaining control of its key assets. The company has been working to strengthen investor confidence following a challenging period marked by supply-chain disruptions, inflationary pressures, and high interest rates.
Earlier, Orsted raised around USD 9.4 billion through a discounted rights issue to improve liquidity and announced plans to reduce about 25 percent of its global workforce by 2027. The company?s shares recently closed at 115 Danish crowns, down roughly 85 percent from their 2021 peak.
Hornsea 3 follows the earlier Hornsea 1 and 2 projects, both located in the same offshore zone. Combined, these projects make the Hornsea development one of the largest offshore wind clusters globally, exceeding 5 GW of capacity. The deal with Apollo comes after Orsted decided to discontinue its Hornsea 4 project earlier this year, citing higher construction costs, supply-chain challenges, and increased project risk, which could result in a financial impact of up to DKK 5.5 billion.
The latest partnership is expected to close later this year, subject to regulatory approvals. Once completed, the investment will allow Orsted to redirect funds toward other renewable developments and maintain financial flexibility amid market uncertainties.
Source Reuters
5th Jun, 2025
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