Orsted Seeks Buyer for Half Stake in UK's Hornsea 3 Wind Farm - Report

Danish energy company Orsted A/S has initiated the process to sell approximately 50% of its stake in the Hornsea 3 offshore wind farm, one of the largest planned offshore wind projects in the United Kingdom. This news was reported on Monday.

This move is part of a broader divestment strategy aimed at implementing the transformation plan launched by CEO Mads Nipper earlier this year.

The sale represents a significant moment as Orsted embarks on its most ambitious project to date, amid historical challenges facing the offshore wind industry. While the exact price demanded by Orsted for the stake has not been disclosed, it is expected that a potential buyer will contribute to financing the construction.

The Hornsea 3 project is designed to generate enough electricity to power more than three million UK households and is described by the company as a £8.5 billion infrastructure investment.

Orsted's divestment strategy is gaining momentum. An indicator of this is the sale of its £1.75 billion stake in four operational wind farms in UK waters to Brookfield in October. The sale of Hornsea 3 is expected to gauge investor interest in Orsted's development projects.

Earlier this year, Orsted achieved a significant victory in the UK, winning government-backed contracts in an auction, which resulted in a 45% increase in the electricity price obtained from a portion of the Hornsea 3 wind farm.

To facilitate the transaction, Orsted has engaged financial advisors from Bank of America and Credit Agricole. However, representatives from both Bank of America and Credit Agricole declined to comment on the matter.

Orsted had previously announced plans to sell its stake in Hornsea 3 by 2025.