Ørsted Divests Remaining Stake in London Array for EUR 829 Million

Business & Finance

July 24, 2023, by Adnan Memija

Ørsted has signed an agreement with funds managed by Schroders Greencoat to divest its remaining 25 per cent minority interest in the London Array offshore wind farm in the UK.

Offshore wind farm London Array, 2022; Photo source: RWE

The total value of the transaction is GBP 717 million (approximately EUR 829 million).

Ørsted originally owned 50 per cent of the project and divested an initial 25 per cent of London Array to Caisse de dépôt et placement du Québec (CDPQ) in 2014.

The company does not have operations and maintenance (O&M) responsibility at the 630 MW London Array, and as the firm only holds a minority interest, Ørsted said it considers the asset non-strategic.

“We’re very pleased to have found a strong new owner for our remaining minority interest in London Array. We continue to see significant appetite for offshore wind as an asset class, and with this divestment, we continue our unrivalled track record of efficiently recycling capital to help fund our DKK 475 billion investment programme towards 2030″, said Daniel Lerup, Chief Financial Officer at Ørsted.

The transaction is expected to close at the end of July, according to Ørsted.

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The London Array, which has been operational since 2013, comprises 175 Siemens SWT-3.6 wind turbines installed over 20 kilometres off the Kent coast.

The wind farm is capable of generating enough clean electricity to power around 500,000 British homes and is maintained and operated from the Port of Ramsgate by RWE. The project is owned by RWE, Masdar, Ørsted, and CDPQ.

When it comes to Ørsted, the company remains one of the largest investors in the UK offshore wind market, where the company operates more than 5 GW of capacity and has a development pipeline that includes the 2.8 GW Hornsea 3 and the 2.6 GW Hornsea 4 project which received consent in mid-July.

“Ørsted remains committed to the UK offshore wind market and will continue to make significant investments in the country’s green transformation both onshore- and offshore”, said Lerup.