Stonepeak buys into 957MW Ørsted portfolio


March 13, 2024

Danish utility Ørsted is selling equity stakes in four onshore wind farms totalling 957MW in the US to investment firm Stonepeak for $300m.

Ørsted plans to recycle the proceeds of the sales into other projects. This is its first partnership with Stonepeak, which is set to receive 80% of the cash distributions associated with the four projects. Ørsted will continue to operate the portfolio.

The projects are the Ford Ridge wind farm in Illinois; the Sunflower Wind project in Kansas; and the Helena and Western Trail developments in Texas.

The utility added that it has previously raised around $700m of tax equity at the assets, bringing the total proceeds raised to around $1bn.

David Hardy, executive vice president and chief executive officer of region Americas at Ørsted, said: “This deal signifies the value that our US onshore renewable energy projects can deliver to our investors while also demonstrating the holistic and flexible approach we take to partnerships and divestments. While Ørsted will continue to operate each asset over its lifetime, we’ll use this capital to fund projects that continue to create the most value for our stakeholders and fuel our growth in the renewable energy sector.”

Anthony Borreca, senior managing director at Stonepeak, said: “The need for efficient infrastructure with the power to further the energy transition continues to grow, and onshore wind continues to play a major role in helping to meet that demand. Ørsted’s US onshore assets are young and have been built with trusted technology, which gives us confidence in their potential to make a meaningful and positive long-term impact on the communities they serve.”

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