Ørsted has signed a transaction with Stonepeak, an investment firm specializing in infrastructure and real assets, divesting an equity ownership stake in a portfolio consisting of four U.S. onshore wind farms with a total capacity of 957 MW. This is Ørsted’s first partnership with Stonepeak and the second major farm-down of multiple assets in the United States.
The value of the transaction is approximately $300 million. In addition, Ørsted has previously raised approximately $700 million in tax equity proceeds for this portfolio, bringing the total proceeds raised to more than $1 billion.
“This deal signifies the value that our US onshore renewable energy projects can deliver to our investors while also demonstrating the holistic and flexible approach we take to partnerships and divestments,” said David Hardy, executive VP and CEO of region Americas at Ørsted. “While Ørsted will continue to operate each asset over its lifetime, we’ll use this capital to fund projects that continue to create the most value for our stakeholders and fuel our growth in the renewable energy sector.”
The portfolio is composed of four wind farms across three states: The Ford Ridge Wind project in Illinois, the Helena Wind and Western Trail Wind projects in Texas and the Sunflower Wind project in Kansas, built in three different markets: the Electric Reliability Council of Texas (ERCOT), Midcontinent Independent System Operator (MISO) and Southwest Power Pool (SPP), respectively.
The projects are all currently operational and have power purchase agreements in place for all or parts of the production capacity.. Ørsted will be the managing member of the partnership and will continue to provide asset management services to the projects. Ørsted currently has a portfolio of nearly 6 GW of onshore wind, solar, and battery storage projects in operation and under construction across the United States.
“The need for efficient infrastructure with the power to further the energy transition continues to grow, and onshore wind continues to play a major role in helping to meet that demand,” said Anthony Borreca, senior managing director at Stonepeak. “Ørsted’s U.S. onshore assets are young and have been built with trusted technology, which gives us confidence in their potential to make a meaningful and positive long-term impact on the communities they serve. We look forward to partnering closely with Ørsted on this highly contracted, geographically diverse portfolio.”
News item from Ørsted
Filed Under: News, Projects
