Orsted has agreed the sale of a 50 per cent stake in Hornsea Two - the huge project soon to emerge as the world’s largest offshore wind farm - for £3 billion.
French financial giants AXA IM Alts and Crédit Agricole Assurances have formed a consortium to take an equal share of the 1.3GW farm, located 89km off the East Yorkshire coast.
Orsted will retain operational control, with works carried out from Grimsby, where it has its East Coast Hub.
Read more: Humber Renewables Awards 2022 launches as a decade celebrating green achievements is marked
Currently in the final throes of construction, and following hot on the heels of current sector leader Hornsea One, the deal follows the established strategy from the Danish multinational to bring in investors.
The transaction is expected to close in the second half of the year, when the wind farm will be fully commissioned, with regulatory approvals obtained.
Martin Neubert, chief commercial officer and deputy group chief executive at Orsted, said: 'We're delighted to partner with AXA IM Alts and Crédit Agricole Assurances, two world-leading financial institutions, which are committed to accelerate the transition to a carbon-neutral economy in line with the Paris Agreement - thereby supporting the urgently needed shift from fossil-based to renewable energy sources."
The investors will be funded through a combination of equity and a senior multi-tranche staple financing package provided by 30 banks and including a covered tranche guaranteed by EKF, Denmark's export credit agency. The financing package was originated and structured by Orsted.
Duncan Clark, UK lead for Orsted, said: 'We're very much looking forward to working with our new partners and continuing to support the UK's commitment to decarbonise electricity by 2035.
"Orsted has invested more than £14 billion in the UK to date, and when Hornsea Two becomes fully operational later this year, our wind farms will be supplying over 7 per cent of Britain's electricity.
“We're now focused on helping the UK deliver on its 40GW and Sector Deal target for offshore wind by 2030, a significant milestone in the energy transition that will deliver more than £60 billion of investment for the UK while supporting the UK's world-class offshore wind supply chain and more than 40,000 jobs over the next few years.'
Spanning an offshore area of 462 sq km, Hornsea Two’s 165 Siemens Gamesa turbines will provide enough green electricity to power the equivalent of more than 1.3 million homes annually.
As well as a 20-year operations and maintenance commitment, Orsted will provide the incoming partners with balancing services and a long-term route to market for generated electricity.
Mark Gilligan, head of infrastructure equity at AXA IM Alts, who will manage on behalf of clients, said: 'Our investment strategy is all about decarbonisation, electrification, and digitalisation. These are central to the energy transition. Hornsea Two allows us to play an important role in decarbonising and electrifying the United Kingdom. This landmark transaction aligns with our aim of acquiring, for our clients, utility-scale low-carbon essential businesses and being a long-term partner of choice for outstanding operators like Orsted.”
Philippe Dumont, chief executive of of Crédit Agricole Assurances, France's second largest international banking group, said: “We're proud to announce this new partnership in favour of the energy transition. This investment in Hornsea Two, the world's largest offshore wind farm, is fully in line with Crédit Agricole Group's climate commitments. This operation will also contribute to Crédit Agricole Assurances' objectives to double its investments in renewable energies and reach an 11GW installed capacity by 2025.”
Crédit Argricole has often been referred ot as 'la banque verte' due to the long-standig ties to farming.
Do you follow BusinessLive Humber on LinkedIn and Twitter? Click to join the conversation.
