Ørsted Sells 50% of Walney Extension

Ørsted, the former DONG Energy, has signed an agreement to sell 50% of Walney Extension, a 659MW UK offshore wind farm project to a consortium consisting of PKA and PFA, two Danish pension funds.

Each investor will obtain a 25% ownership interest in the project. The total sales price comprises the acquisition of a 50% ownership share and the commitment to fund 50% of the payments under the EPC contract for the entire wind farm, including the transmission assets, and amounts to approximately GBP 2 billion, which will be paid during 2017 and 2018.

The transaction is subject to approval by relevant competition authorities and is expected to be completed by the fourth quarter of 2017.

Walney Extension, which is currently under construction, will be the world’s largest offshore wind farm when commissioned in the second half of 2018.

Ørsted will construct the wind farm under a full-scope EPC contract. Ørsted will also provide long-term operations and maintenance services from its O&M base in Barrow-in-Furness and provide a route to market for the power generation from Walney Extension.

”We already have a strong partnership with PKA on three other offshore wind farms and we look forward to building an equally long-lasting relationship with PFA on what will be the world’s biggest wind farm when completed,” Henrik Poulsen, CEO of Ørsted, said.

Following the farm down of 50% of Walney Extension, Ørsted increases its EBITDA guidance for 2017 from DKK 17-19bn to DKK 19-21bn. Expected gross investments remain unchanged at DKK 18-20bn.