Orsted Inks Onshore Wind Portfolio Deal with Stonepeak for $300 mn

By Editor


Orsted, a global leader in renewable energy, has decided to divest equity stake in a portfolio comprising four US onshore wind farms, totaling 957 MW in capacity, to investment firm Stonepeak.

This transaction, part of Orsted’s farm-down program, marks the company’s inaugural collaboration with Stonepeak and the second significant divestment of multiple assets in the US market.

The deal, valued at approximately $300 million, adds to Orsted’s previously raised tax equity proceeds of around $700 million for the portfolio, resulting in total proceeds of approximately $1 billion. Going forward, Stonepeak will receive 80 percent of the cash distributions associated with the projects, while Orsted will retain operational control over the assets.

This transaction aligns with Orsted’s farm-down strategy, focusing on divesting ownership shares of existing operating assets to reallocate capital for future projects, while retaining operational oversight and long-term flexibility.

David Hardy, CEO of Region Americas at Orsted, emphasized the deal’s significance in delivering value to investors while showcasing Orsted’s adaptable partnership and divestment approach.

Anthony Borreca, Senior Managing Director at Stonepeak, expressed confidence in Orsted’s US onshore assets, highlighting their potential to contribute to the energy transition and local communities.

Key facts about the portfolio include its composition of four wind farms across Illinois, Texas, and Kansas, with a combined capacity of 957 MW spanning the ERCOT, MISO, and SPP markets. All projects are operational, backed by power purchase agreements, and will continue to be managed by Orsted.

With nearly 6 GW of onshore wind, solar, and battery storage projects in operation and under construction across the US, Orsted remains committed to expanding its renewable energy footprint and driving the global transition to sustainable energy.

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