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- Significant Stake: Brookfield acquires a 12.45% minority stake in Ørsted’s 3.5 GW UK offshore wind portfolio, valued at $2.3 billion.
- Strategic Expansion: This marks Brookfield’s first UK offshore wind investment, supporting UK’s clean energy goals.
- Operational Control: Ørsted retains a 37.55% share and continues to oversee operations of the wind assets.
Ørsted has entered a strategic partnership with Brookfield Asset Management, its institutional affiliates, and Brookfield Renewable, who will acquire a 12.45% minority stake in four of Ørsted’s UK offshore wind farms—Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension—collectively amounting to 3.5 GW in capacity.
The transaction holds an enterprise value of $2.3 billion, with $570 million net to Brookfield Renewable, and is expected to close by year-end 2024 pending regulatory approvals. Brookfield Infrastructure Fund V, the world’s largest infrastructure fund, is backing the acquisition, enhancing Brookfield’s expansion into the offshore wind sector.
Mads Nipper, Ørsted’s Group President and CEO, emphasized the deal’s significance, saying: “We’re pleased to welcome Brookfield, a leading renewable energy investor with proven investment and operational expertise, as a partner in four U.K. offshore wind farms in one of Ørsted’s core strategic markets. Today’s transaction is an important milestone in the farm-down program as part of our business plan, supporting our significant re-investment in new assets.”
This acquisition aligns with Brookfield’s ambition to invest in a diversified, operational offshore wind portfolio and marks a major step into the mature offshore wind market. “We are pleased to be partnering with Ørsted to invest in four high-quality assets that are critical to supplying the U.K. with renewable power and supporting the country’s decarbonization objectives,” commented Connor Teskey, CEO of Brookfield Renewable and President of Brookfield Asset Management.
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Ørsted retains a 37.55% ownership interest, maintaining operational control of the assets. Each wind farm operates under long-term, inflation-linked contracts for difference (CfDs), securing consistent revenue.
The agreement also provides Ørsted with a call option, enabling it to repurchase the assets from Brookfield at a pre-agreed price between two and seven years after closing.
As the UK’s foremost offshore wind developer, Ørsted continues to lead with over 5 GW of operational offshore wind capacity and an additional 5 GW under construction, underscoring its commitment to renewable energy expansion in line with global decarbonization goals.