Ørsted has entered an agreement to divest 50% of its ownership share in the 659MW Walney Extension offshore windfarm project in the UK for around £2bn.

A consortium comprising Danish pension funds Pensionskassernes Administration (PKA) and PFA Pension will buy the share, owning 25% each.

The transaction also features a commitment to fund 50% of the payments under a full-scope engineering, procurement, and construction (EPC) contract for the windfarm including transmission assets.

The transaction value will be paid during 2017 and 2018.

Subject to approval by relevant competition authorities, the deal is expected to be closed by Q4, 2017.

“The Walney Extension is expected to be commissioned by the second half of next year.”

Ørsted CEO Henrik Poulsen said: “We already have a strong partnership with PKA on three other offshore windfarms and we look forward to building an equally long-lasting relationship with PFA on what will be the world’s biggest windfarm when completed.

“Both partners are committed to the green energy transition and I’m pleased that our offshore wind assets continue to be attractive to institutional investors.”

Currently under development, Walney Extension is expected to be commissioned by the second half of next year.

The farm will be equipped with 87 wind turbines, which will be able to generate enough electricity to power more than 500,000 UK homes.

Ørsted will also provide long-term operations and maintenance (O&M) services from its O&M base in Barrow-in-Furness in England.