Ørsted Has Signed an Agreement to Divest a 50% Ownership Stake in Its 1.3GW Hornsea 2 Offshore Windfarm
Ørsted 50% Ownership Agreement in Hornsea2
A £3bn deal has been agreed for a 50 per cent stake in a new wind farm off the East Coast which is set to become the largest of its kind in the world.
Ørsted has signed an agreement to divest a 50 percent ownership stake in its 1.3 GW Hornsea 2 Offshore Wind Farm to a consortium comprising AXA IM Alts, acting on behalf of clients, and Crédit Agricole Assurances.
Hornsea 2 Status
Hornsea 2 is currently under construction and is set to become the world’s largest offshore wind farm once commissioned later in 2022.
Hornsea 2 Project Value
The total value of the transaction is £3bn, with completion expected in the second half of 2022 once the wind farm is fully commissioned and customary regulatory approvals have been obtained.
AXA IM Alts and Crédit Agricole Assurances will then each own 25 per cent of the project.
Fundation
The investors’ stake in Hornsea 2 will be funded through a combination of equity and a senior multi-tranche staple financing package provided by 30 banks and including a covered tranche guaranteed by EKF, Denmark’s export credit agency.
The financing package was originated and structured by Ørsted.
Ørsted 50% Ownership Agreement in Hornsea2; Martin Neubert
Martin Neubert, chief commercial officer and deputy group chief executive at Ørsted, said:
“We’re delighted to partner with AXA IM Alts and Crédit Agricole Assurances, two world-leading financial institutions, which are committed to accelerate the transition to a carbon-neutral economy in line with the Paris Agreement – thereby supporting the urgently needed shift from fossil-based to renewable energy sources.”
Where is Hornsea Two? Hornsea Two will be located approximately 89 km (55.3 miles) off the Yorkshire coast in the North Sea, adjacent to Hornsea One – currently the world’s largest offshore wind farm. Once operational in 2022, Hornsea Two will span an offshore area of 462km². (source: Hornsea)
Mark Gilligan; Investment Strategy
Mark Gilligan, head of infrastructure equity at AXA IM Alts, added:
“Our investment strategy is all about decarbonization, electrification, and digitalization. These are central to the energy transition. Hornsea 2 allows us to play an important role in decarbonizing and electrifying the UK.”
“This landmark transaction aligns with our aim of acquiring, for our clients, utility-scale low-carbon essential businesses and being a long-term partner of choice for outstanding operators like Ørsted.”
About Hornsea 2
Spanning an offshore area of 462 sq km, Hornsea 2 is located 89 km off the Yorkshire coast in the Hornsea zone, one of the world’s largest offshore wind development areas.
Hornsea 2 Capacity
With a capacity of 1.3 GW, the wind farm will provide enough green electricity to power the equivalent of more than 1.3 million homes annually.
Ørsted
Ørsted is finalizing the construction of the project and will provide long-term operations and maintenance (O&M) services for 20 years from its O&M base at the Port of Grimsby.
