Ørsted to sell ownership share in four US wind farms to Stonepeak for $300 million
Danish energy company Ørsted has finalized an agreement to sell its ownership share in a 957MW onshore wind farm collection in the US to American infrastructure investor Stonepeak. The $300 million transaction boosts Ørsted’s tax equity funds for the collection from $700 million to $1 billion.
Stonepeak is set to receive 80% of the project’s cash distributions, while Ørsted will manage the portfolio. The collection comprises four wind farms located in Illinois, Texas, and Kansas. These fully operational wind farms are backed by power purchase agreements and serve the markets of the Electric Reliability Council of Texas, the Midcontinent Independent System Operator, and the Southwest Power Pool.
Ørsted has the right to exercise a unilateral call option on Stonepeak’s interests, subject to specific conditions after the transaction.
Ørsted’s Executive Vice President and CEO for the Americas region, David Hardy, emphasized : the importance of this agreement in showcasing the benefits that our US onshore renewable energy projects offer to our investors. It also highlights our comprehensive and adaptable approach to partnerships and divestments.
The sale aligns with Ørsted’s overarching plan to redistribute funds to upcoming ventures through the sale of ownership stakes in operational assets. Stonepeak’s Senior Managing Director, Anthony Borreca, emphasized the increasing demand for effective infrastructure to drive the energy transition, with onshore wind remaining pivotal in addressing this need.
“While Ørsted will maintain operations for each asset throughout its lifespan, we intend to utilize this capital to support projects that consistently generate maximum value for our stakeholders and drive our expansion in the renewable energy industry.”
The divestment aligns with Ørsted’s overarching plan to redirect capital towards upcoming initiatives through the sale of ownership stakes in operational assets. Anthony Borreca, senior managing director at Stonepeak, emphasized: “The demand for effective infrastructure supporting the energy transition is increasing, and onshore wind remains pivotal in meeting this need.”
“Ørsted’s onshore assets in the United States are relatively new and constructed using reliable technology, providing us with assurance of their ability to create a significant and beneficial long-term effect on the communities they support. We anticipate a close collaboration with Ørsted on this extensively contracted and geographically varied portfolio.”
In October 2023, Ørsted entered into a deal with Glennmont Partners to divest a 50% share in the 253MW Gode Wind 3 offshore wind farm in Germany.
The transaction, valued at €473 million, encompasses the purchase amount and an agreement to fund half of the construction expenses. Ørsted acquired Gode Wind 3 in 2017 and 2018, with the project enjoying an average feed-in tariff of €81 per megawatt-hour.
Source: Ørsted
