REG-Ørsted A/S Ørsted divests share of four US onshore wind farms to Stonepeak

Oersted A/SAnnouncement

13/03/2024 07:15

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   Ørsted A/S (Orsted)
   Ørsted divests share of four US onshore wind farms to Stonepeak

   13-March-2024 / 08:00 CET/CEST

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   13.3.2024 08:00:01 CET | Ørsted A/S | Investor News

   Through the partnership with Stonepeak, Ørsted will recycle capital to
   support its business plan and future value-creating renewable energy
   projects.

   Ørsted has signed a transaction with Stonepeak, a leading alternative
   investment firm specialising in infrastructure and real assets, whereby
   Ørsted will divest to Stonepeak an equity ownership stake in a portfolio
   consisting of four US onshore wind farms with a total capacity of 957 MW.
   In continuation of Ørsted’s farm-down programme, this transaction
   represents the company's first partnership with Stonepeak and the second
   major farm-down of multiple assets in the US. 

   The value of the transaction is approximately USD 300 million. In
   addition, Ørsted has previously raised approximately USD 700 million in
   tax equity proceeds for this portfolio, bringing the total proceeds raised
   to approximately USD 1 billion. Going forward, Stonepeak will receive 80 %
   of the cash distributions associated with the projects, while Ørsted will
   continue to operate the portfolio of assets. 

   As part of the transaction, Ørsted retains a unilateral call option for
   Stonepeak’s interests that can be exercised under certain circumstances
   after the closing of the transaction. While structured differently, the
   transaction broadly corresponds to Ørsted’s historical farm-down approach,
   in which ownership shares of existing operating assets are divested in
   order to recycle and redeploy capital for future value-creating projects.
   The unique partnership structure allows Ørsted to maximise capital
   redeployment while also retaining operational decision-making and
   long-term optionality around the portfolio. 

   David Hardy, Executive Vice President and CEO of Region Americas at
   Ørsted, said: “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.
   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.” 

   Anthony Borreca, Senior Managing Director at Stonepeak, said: “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. Ørsted’s US 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.”

   Facts about the portfolio

     • The portfolio consists 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.
     • The deal represents a total capacity of 957 MW across three different
       markets: the Electric Reliability Council of Texas (ERCOT),
       Midcontinent Independent System Operator (MISO), and Southwest Power
       Pool (SPP).
     • 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 US.

   For further information, please contact:

   Ørsted Global Media Relations
   Tom Christiansen
   +45 99 55 60 17
    1 tomlc@orsted.com 

   Ørsted Investor Relations
   Rasmus Keglberg Hærvig
   +45 99 55 90 95
    2 IR@orsted.com

   Stonepeak
   Kate Beers and Maya Brounstein
   +1 (646) 540-5225. 
    3 corporatecomms@stonepeak.com  

   About Ørsted
   The Ørsted vision is a world that runs entirely on green energy. Ørsted
   develops, constructs, and operates offshore and onshore wind farms, solar
   farms, energy storage facilities, renewable hydrogen and green fuels
   facilities, and bioenergy plants. Ørsted is recognised on the CDP Climate
   Change A List as a global leader on climate action and was the first
   energy company in the world to have its science-based net-zero emissions
   target validated by the Science Based Targets initiative (SBTi).
   Headquartered in Denmark, Ørsted employs approximately 8,900 people.
   Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2023, the
   group's revenue was DKK 79.3 billion (EUR 10.6 billion). Visit
    4 orsted.com or follow us on Facebook, LinkedIn, Instagram, and X.

   About Stonepeak
   Stonepeak is a leading alternative investment firm specialising in
   infrastructure and real assets with approximately USD 61.1 billion of
   assets under management. Through its investment in defensive, hard-asset
   businesses globally, Stonepeak aims to create value for its investors and
   portfolio companies, with a focus on downside protection and strong
   risk-adjusted returns. Stonepeak, as sponsor of private equity and credit
   investment vehicles, provides capital, operational support, and committed
   partnership to grow investments in its target sectors, which include
   communications, energy and energy transition, transport and logistics, and
   real estate. Stonepeak is headquartered in New York with offices in Hong
   Kong, Houston, London, Singapore, and Sydney. For more information, please
   visit  5 www.stonepeak.com.

       Attachments

     •  6 Farm-down.pdf

   News Source: Ritzau

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          DK0060094928
   Category Code: MSCM
   TIDM:          Orsted
   Sequence No.:  309261
   EQS News ID:   1857309


    
   End of Announcement EQS News Service

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References

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   2. mailto:IR@orsted.com
   3. mailto:corporatecomms@stonepeak.com
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