Ørsted Sells 50% of Hornsea 3 Offshore Wind Project to Apollo for $5.6 Billion

Ørsted A/S (CPH: ORSTED) has signed an agreement to divest a 50% ownership interest in its 2.9 GW Hornsea 3 Offshore Wind Farm to funds managed by Apollo Global Management in a transaction valued at around DKK 39 billion ($5.6 billion). The deal marks a major step in Ørsted’s capital recycling strategy and will significantly strengthen the company’s balance sheet as it continues to execute one of the world’s largest renewable buildouts.

Under the agreement, Apollo will acquire half of Ørsted’s equity in Hornsea 3 and assume responsibility for 50% of project construction costs, including payments under the EPC contract and the offshore transmission asset. Ørsted will continue to lead construction under a full-scope EPC contract and will retain responsibility for long-term operations and maintenance from its East Coast hub.

The total transaction value of DKK 39 billion includes approximately DKK 20 billion payable at closing—split between a DKK 10 billion equity purchase and a DKK 10 billion construction payment—with the remainder tied to future project milestones. The total project investment remains within Ørsted’s DKK 70–75 billion estimate. The transaction is expected to have a neutral lifetime EBITDA effect and will not affect Ørsted’s 2025 earnings or gross investment guidance.

The divestment forms part of Ørsted’s broader partnership and divestment program aimed at freeing capital for reinvestment in new renewable projects. It follows the company’s rights issue earlier this year, which raised funds to support ongoing offshore wind development amid tighter capital conditions and rising project costs. The deal also advances Ørsted’s plan to complete the world’s largest contiguous offshore wind zone—Hornsea 1, 2, and 3—totaling over 5 GW of installed capacity off the Yorkshire coast.

Hornsea 3, located 160 km off northern England, will generate enough clean energy to power more than 3 million UK homes once operational. The transaction underscores continued institutional investor appetite for large-scale renewable infrastructure, even as developers seek to balance capital discipline with aggressive growth targets. For Apollo, the deal expands its footprint in global clean energy assets amid growing private equity interest in European offshore wind.

By Charles Kennedy for Oilprice.com

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