Ørsted in Talks to Sell 50% Stake in Hornsea 3 to Apollo, FT Reports

Ørsted, the offshore wind developer, is in advanced discussions to sell a 50% stake in its £8.5 billion Hornsea 3 wind farm to Apollo Global Management, the Financial Times reported last week, citing people familiar with the matter.

The Danish energy group is said to have launched a sale process for the stake late last year and confirmed in August that a preferred bidder had been selected, without naming the buyer.

According to the FT, Apollo has emerged as that bidder, positioning itself to secure one of Britain’s most significant offshore wind investments.

Hornsea 3, a 2.9-gigawatt project off the U.K.’s east coast, forms part of Ørsted’s efforts to complete eight offshore wind farms worldwide, despite mounting headwinds. 

The company has struggled with rising interest rates, higher supply-chain costs and political opposition, particularly in the U.S. President Donald Trump has repeatedly criticised wind energy and attempted to block Ørsted projects in American waters.

Ørsted’s challenges have weighed heavily on its shares, which are down 34% this year in Copenhagen. 

The company recently abandoned plans for the Hornsea 4 project, blaming the financial strain. It is also seeking to raise about £7 billion through a rights issue to strengthen its balance sheet.

A sale to Apollo would provide a major boost, coming just days after a U.S. judge overturned a Trump-era order halting Ørsted’s Revolution Wind project off Rhode Island. 

Apollo, meanwhile, has been active in European energy infrastructure, with recent deals spanning Germany’s power grid and nuclear financing in the U.K.