REG-Ørsted A/S Ørsted partners with ECP in the company’s first-ever farm-down of onshore assets

Oersted A/SAnnouncement

21/10/2022 08:15

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   Ørsted A/S (Orsted)
   Ørsted partners with ECP in the company’s first-ever farm-down of onshore
   assets

   21-Oct-2022 / 09:00 CET/CEST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   21.10.2022 09:00:00 CEST | Ørsted A/S | Investor News

   Ørsted closed a transaction with Energy Capital Partners (ECP), a leading
   energy transition-focused investor, to divest a 50 % ownership stake in a
   portfolio consisting of three onshore wind farms and one solar farm in the
   US. The value of the transaction is approx. USD 410 million.

   The portfolio, comprised of the onshore wind farms Lincoln Land Wind, Plum
   Creek Wind, and Willow Creek Wind as well as the solar farm Muscle Shoals,
   is diversified across four US states, representing a total capacity of 862
   MW. The projects are all 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.

   The transaction was funded via a fund-of-one partnership, Renewable Power
   Fund Plus, between ECP and Teachers Insurance and Annuity Association of
   America (TIAA), a US Fortune 100 insurance and financial services
   organization, along with debt financing from Mitsubishi UFJ Financial
   Group (MUFG). Renewable Power Fund Plus now owns 50% of a newly
   established company holding the four projects. TIAA also owns global asset
   manager Nuveen and its subsidiary Glennmont Partners, who acquired 50% of
   Ørsted’s German offshore wind farm Borkum Riffgrund 3 in 2022.

   This is not only Ørsted’s first farm-down of onshore assets, but also the
   first time Ørsted is divesting multiple assets in one transaction as part
   of its farm-down program. The transaction successfully recycles a material
   amount of capital that will support Ørsted’s ambition to reach 50 GW of
   installed renewable energy capacity globally by 2030. Ørsted currently has
   a portfolio of over 5 GW of onshore wind and solar PV projects in
   operation and under construction across the US and Europe.

   Neil O’Donovan, CEO of Ørsted Onshore, says: “I’m excited about bringing
   in such a leading investor as ECP, who has a proven and established track
   record in power and renewables, for the first farm-down in our Onshore
   business. I consider this transaction another key milestone in the Onshore
   journey and a testament to the value our projects create. Our ability to
   raise capital will fuel our continued onshore growth. I’m proud of the
   team for making this transaction happen.” 

   Schuyler Coppedge, Partner at ECP, says: “We are pleased to invest in this
   diverse portfolio of operating wind and solar assets, underpinned by long
   term investment grade cash flows in attractive markets. Ørsted has a first
   class reputation for owning and operating renewable projects around the
   world, and we are delighted to partner with them as they continue to grow
   and diversify their Onshore business.”

   Facts about the portfolio 

     • The portfolio consists of three onshore wind assets (Plum Creek Wind,
       Willow Creek Wind, and Lincoln Land Wind) and one solar asset (Muscle
       Shoals) with a combined capacity of 862 MW.
     • The portfolio is spread across four US locations (Illinois, Nebraska,
       South Dakota, and Alabama) and three markets (MISO, SPP North, and
       TVA).
     • The projects are all 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.

   For further information, please contact:

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

   Investor Relations
   Rasmus Keglberg Hærvig
   +45 99 55 90 95
    2 ir@orsted.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. Moreover, Ørsted provides energy
   products to its customers. Ørsted is the only energy company in the world
   with a science-based net-zero emissions target as validated by the Science
   Based Targets initiative (SBTi), and Ørsted aims to deliver a net-positive
   biodiversity impact from all new renewable energy projects it commissions
   from 2030 at the latest. Ørsted ranks as the world’s most sustainable
   energy company in Corporate Knights' 2022 index of the Global 100 most
   sustainable corporations in the world and is recognised on the CDP Climate
   Change A List as a global leader on climate action. Headquartered in
   Denmark, Ørsted employs 7,292 people. Ørsted's shares are listed on Nasdaq
   Copenhagen (Orsted). In 2021, the group's revenue was DKK 77.7 billion
   (EUR 10.4 billion). Visit  3 orsted.com or follow us on Facebook,
   LinkedIn, Instagram, and Twitter.

   About ECP
   ECP, founded in 2005, is a leading investor across energy transition,
   electrification and decarbonization infrastructure assets. The ECP team,
   comprised of 65 people with 500 years of collective industry experience,
   deep expertise and extensive relationships, has consummated more than 60
   transactions over the last 10 years, representing more than $45 billion of
   enterprise value. For more information, visit www.ecpgp.com.

       Attachments

     •  4 Ørsted Partners with ECP.pdf

   News Source: Ritzau

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   ISIN:          DK0060094928
   Category Code: MSCM
   TIDM:          Orsted
   Sequence No.:  195696
   EQS News ID:   1468401


    
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