Global investment manager Schroders’ renewable infrastructure investment unit Schroders Greencoat announced the acquisition of a 24.5% stake in an offshore U.K. wind farm from Danish multinational energy company Ørsted for £456.1 million (USD$6!0 million).
Under the deal, Ørsted will retain a 25.5% interest in the West of Duddon Sands wind farm, and will continue to operate it. The wind farm, located approximately 14 km off the U.K.’s west coast, has been operating since 2014 and has a capacity of 389 MW.
According to Ørsted, the transaction forms part of its farm-down programme, under which it divests ownership shares of existing operating assets in order to redeploy capital for future value-creating projects. Ørsted is currently executing a self-funded more than 8 GW offshore wind construction programme, which will almost double the company’s installed offshore wind capacity.
Trond Westlie, Group CFO of Ørsted, said:
“Partnerships are an integral part of Ørsted’s business model, and we’re pleased to expand our partnership with Schroders Greencoat who has a proven track record in managing renewable energy infrastructure assets and is a highly valued partner to Ørsted. With today’s announcement we continue to deliver on our farm-down program with a transaction that meets our strategic objectives for partnerships and divestments in terms of value creation, risk diversification, and capital recycling.”
The transaction marks part of an ongoing collaboration between the companies, with Schroders Greencoat already serving as an existing partner on four Ørsted offshore wind farms Walney, Burbo Bank Extension, Hornsea 1, and Borkum Riffgrund 1.
Minal Patel, Global Head of Infrastructure at Schroders Capital, said:
“We are incredibly pleased to strengthen our position through this long-term partnership with Ørsted. West of Duddon Sands represents an excellent asset with strong, inflation-protected cash flows, which should perform robustly in what is currently a volatile market. As we navigate the energy transition, we recognize that this sector will continue to evolve. By investing in established assets like West of Duddon Sands, we position ourselves to achieve secure returns while contributing to the decarbonization of power generation and supporting sustainable infrastructure development.”
