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Orsted has agreed to divest a 50% ownership stake in its Hornsea 2 offshore windfarm to Axa’s investment management arm and Crédit Agricole Assurances in a £3 billion deal.
Once commissioned later this year the site will overtake Hornsea 1 as the world’s largest offshore windfarm.
Axa IM Alts and Crédit Agricole will each take a 25% stake of the 1.3GW windfarm, which is located 89km off the Yorkshire coast.
The transaction is expected to close in the second half of 2022 after Hornsea 2’s commission and the customary regulatory approvals are obtained.
The 50% stake will be funded through a combination of equity and a senior multi-tranche staple financing package provided by 30 banks and including a covered tranche guaranteed by EKF, Denmark’s export credit agency.
Mark Gilligan, head of infrastructure equity at AXA IM Alts, said: “Hornsea 2 allows us to play an important role in decarbonising and electrifying the United Kingdom.
“This landmark transaction aligns with our aim of acquiring, for our clients, utility-scale low-carbon essential businesses and being a long-term partner of choice for outstanding operators like Orsted.”
Philippe Dumont, chief executive of Crédit Agricole Assurances, said: ‘We’re proud to announce this new partnership in favour of the energy transition. This investment in Hornsea 2, the world’s largest offshore wind farm, is fully in line with Crédit Agricole Group’s climate commitments.
“This operation will also contribute to Crédit Agricole Assurances’ objectives to double its investments in renewable energies and reach an 11 GW installed capacity by 2025.”
Duncan Clark, head of region UK at Orsted, said: “Orsted has invested more than £14 billion in the UK to date, and when Hornsea 2 becomes fully operational later this year, our wind farms will be supplying over 7% of Britain’s electricity.
“We’re now focused on helping the UK deliver on its 40GW and Sector Deal target for offshore wind by 2030, a significant milestone in the energy transition that will deliver more than £60 billion of investment for the UK while supporting the UK’s world-class offshore wind supply chain and more than 40,000 jobs over the next few years.”
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