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(Bloomberg) — Funds managed by Apollo Global Management Inc. agreed to invest $6.5 billion in Orsted A/S’s Hornsea 3, the UK offshore wind project that’s among the world’s largest.
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The agreement includes the funds taking a 50% interest in the joint venture holding Hornsea 3, Apollo said Monday in a statement. It also involves a commitment to pay for 50% of the project’s remaining construction costs.
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The commitment from Apollo comes roughly six months after Denmark’s Orsted canceled plans for the Hornsea 4 offshore wind farm, a major blow to the UK’s plans to boost the clean energy source in coming years.
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The Danish firm has faced a string of setbacks this year, including as the once-promising US wind market has seen a reversal of fortunes. In response, Orsted has pivoted to hone in on the offshore business in Europe, where it was an early pioneer of the industry late last century.
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In October, Orsted raised 60 billion Danish kroner ($9.3 billion) through a rights offering that’s been seen as critical to helping the company tackle the downturn facing the wind-power industry.
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Hornsea 3 is Orsted’s third gigawatt-scale project in the North Sea’s Hornsea zone and upon completion it will have a capacity of 2.9 gigawatts, enough power for more than 3 million UK households, according to the statement.
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The Hornsea 3 transaction is subject to regulatory approvals and is expected to close before year-end 2025.
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—With assistance from Millie Munshi.
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