Ørsted (the former DONG Energy) has signed an agreement to sell 50% of Walney Extension, a 659MW UK offshore wind farm project to a consortium consisting of PKA and PFA, two Danish pension funds. Each investor will obtain a 25% ownership interest in the project.
Ørsted will construct the wind farm under a full-scope EPC contract. Ørsted will also provide long-term operations and maintenance services from its O&M base in Barrow-in-Furness and provide a route to market for the power generation from Walney Extension. The total sales price comprises the acquisition of a 50% ownership share and the commitment to fund 50% of the payments under the EPC contract for the entire wind farm (including the transmission assets), and amounts to approx. GBP 2.0 billion, which will be paid during 2017 and 2018. Following the farm down of 50% of Walney Extension, Ørsted increases its EBITDA guidance for 2017 from DKK 17-19bn to DKK 19-21bn. The transaction is subject to approval by relevant competition authorities and is expected to be completed by Q4 2017.
