Ørsted strengthens finances after U.S. offshore wind setbacks

Danish energy company Ørsted has agreed to sell a 50% stake in its Hornsea 3 offshore wind farm in the U.K. to funds managed by Apollo, a move aimed at shoring up its finances.

The total value of the transaction is approximately 39 billion Danish kroner, the company said Monday.

The deal is part of Ørsted's plan to strengthen its capital structure following significant setbacks in its U.S. offshore wind business that recently led to a large share sale and job cuts.

Under the agreement, Apollo will acquire a 50% ownership share and commit to funding half of the construction costs for the 2.9-gigawatt project.

Ørsted said it will receive about 20 billion kroner when the deal closes, which is expected before the end of the year, subject to regulatory approvals.

The company will continue to build the wind farm and provide long-term operations and maintenance services.

“The divestment represents an important milestone for Ørsted as we continue to deliver on our partnership and divestment programme, which is a cornerstone of our business plan,” said Chief Financial Officer Trond Westlie.

Located 160 kilometers off the Yorkshire coast, Hornsea 3 is expected to produce enough electricity to power more than 3 million U.K. homes once operational.

The transaction does not change Ørsted’s financial guidance for 2025, according to the company.