Orsted Offloads $300 Million Share of Four U.S. Onshore Wind Farms to Stonepeak

By Dominic Chopping

Orsted has agreed to divest a stake in a portfolio of four U.S. onshore wind farms to Stonepeak for $300 million.

The Danish renewable-energy company said the deal broadly corresponds to its historical farm-down approach, whereby ownership stakes of existing operating assets are divested in order to recycle and redeploy capital for future projects.

The partnership structure allows it to maximize capital redeployment while also retaining a long-term interest and operational control of the portfolio, it said.

The portfolio consists of four wind farms across three states, the Ford Ridge Wind project in Illinois, the Helena Wind and Western Trail Wind projects in Texas, and the Sunflower Wind project in Kansas, together representing a total capacity of 957 megawatts.

Orsted has previously raised around $700 million in tax equity proceeds for this portfolio, bringing the total proceeds raised to around $1 billion.

The projects are all currently operational and have power purchase agreements in place for all or parts of the production capacity and going forward, Stonepeak will receive 80% of the cash distributions associated with the projects while Orsted will continue to operate the assets.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

03-13-24 0340ET