Danish power company Ørsted has agreed to sell 50% of its stake in Hornsea 1 offshore wind farm to US-based investment fund Global Infrastructure Partners (GIP) in a $5.8bn deal.
As per the agreement, Ørsted will construct the wind farm under a full-scope engineering, procurement, and construction (EPC) contract.
The deal value for Hornsea 1 comprises the acquisition price for the 50% ownership share and the commitment to fund 50% of payments under the EPC contract for the entire wind farm, including transmission assets.
The agreed amount will be paid between 2018 and 2020.
Currently, Hornsea 1 is under construction and will become the world’s largest offshore wind farm when commissioned in 2020.
Ørsted M&A partnerships and asset management executive vice-president Ole Kjems Sørensen said: “This is our third partnership with GIP, and we are delighted to have one of the world’s largest infrastructure funds as a partner, in what will be the world’s largest offshore windfarm.
“The Hornsea 1 farm down is a landmark transaction which will create substantial value for our shareholders and reduce single asset exposure.”
Additionally, the Danish firm has agreed to provide long-term operations and maintenance services from its operations and maintenance base in Grimsby as well as provide a route to market for the power generated by Hornsea 1.
Completion of the deal is subject to certain regulatory approvals and is expected to conclude by this fourth quarter.
In addition to Hornsea 1, GIP holds a 50% stake in Ørsted’s German offshore wind farms, Gode Wind 1 and Borkum Riffgrund 2.