Alternative investment firm Stonepeak today announced an agreement with global energy developer Ørsted to acquire an equity stake valued at approximately $300 million in a 957 MW portfolio of US onshore wind farms.
The portfolio includes four onshore wind farms in Illinois, Texas and Kansas. According to the companies, the portfolio is highly contracted, with each project currently in operation and with power purchase agreements for all or part of the production capacity.
Under the terms of the new transaction, Ørsted will continue to operate the portfolio of assets, while Stonepeak will receive 80% of the cash distributions associated with the projects. Ørsted will also maintain a call option on the stake sold that it may exercise in the future under certain circumstances.
Anthony Borreca, Senior Managing Director at Stonepeak, said:
“The need for efficient infrastructure with the capacity to promote the energy transition continues to grow and onshore wind energy continues to play an important role in helping to meet this demand. Ørsted’s U.S. onshore assets are young and built with reliable technology, giving us confidence in their potential to make a significant, positive, long-term impact on the communities they serve.”
According to Ørsted, the transaction is part of its farm-down program, under which it divests ownership shares in existing operating assets in order to reallocate capital to future value-creating projects. The company noted that it has already raised approximately $700 million in fiscal capital proceeds for the portfolio, bringing revenues raised from the projects to approximately $1 billion.
David Hardy, Executive Vice President and CEO of Ørsted's Americas Region, said:
“This agreement signifies the value that our U.S. onshore renewable energy projects can offer our investors, while also demonstrating the holistic and flexible approach we take to partnerships and divestitures. While Ørsted will continue to operate each asset throughout its life, we will use this capital to finance projects that continue to create the greatest value for our stakeholders and fuel our growth in the renewable energy sector.”
