Deal Strengthens Orsted’s Finances Amid Rising Costs and Market Headwinds
Denmark’s Orsted, the world’s largest offshore wind developer, has sold a 50% stake in its £8.5 billion ($11.4 billion) Hornsea 3 offshore wind project in the UK to Apollo Global Management for about 39 billion Danish crowns ($6.09 billion). The deal marks a major step toward strengthening Orsted’s balance sheet amid rising costs, inflation, and market headwinds.
Apollo’s investment includes both equity participation and a commitment to fund half of the project’s remaining construction expenses. Hornsea 3, with a capacity of 2.9 GW and located in the North Sea, is projected to become the world’s largest offshore wind farm by 2027—supplying clean power to more than 3 million British homes.
This transaction follows Orsted’s $9.4 billion rights issue and a strategic workforce reduction aimed at restoring financial stability after canceling the Hornsea 4 project due to cost escalations and execution risks. The partnership with Apollo represents a key milestone in Orsted’s turnaround strategy, reaffirming its leadership in global renewable energy development.
