Today, Ørsted announced it is divesting a 50% equity stake in three U.S. onshore projects to Energy Capital Partners (ECP), a leading energy transition-focused investor and the largest private owner of power generation and renewables in the US. The farm-downs include two solar farms in Texas, Mockingbird Solar (468 MW) and Sparta Solar (250 MW), and Eleven Mile Solar Center, a 300 MW solar and 300 MW/1,200 MWh battery storage project in Arizona. With operations commencing in 2024, all three projects have tax equity partnerships and power purchase agreements in place.

The value of this transaction is $572 million, representing continued execution on Ørsted’s divestment program and generating proceeds to support our progress towards our mid- and long-term targets. Ørsted will retain a 50% equity ownership interests in the three projects and will continue to operate the projects over their lifespan. As the financial closing of the transaction is across different project companies, the total impact from the transaction will be recognized across the reporting periods Q4 2024 and Q1 2025 and subject to certain conditions precedent.

This year, Ørsted raised approximately $734 million in up front proceeds for these projects from tax equity partner, J.P. Morgan, and subsequently signed its first long-term tax credit transfer agreement for Mockingbird Solar Center. The sales price relating to the divestment and tax equity funding bring the total proceeds raised for the three projects to over $1.3 billion.

“These transactions reflect our close engagement with a range of commercial partners, including our tax equity and transferability partners, which are all key to the growth of Ørsted’s U.S. onshore portfolio,” said James Giamarino, Head of Commercial in Region Americas at Ørsted. “As we make further progress on our growth ambitions, we’ll use this recycled capital to continue the buildout of projects that create long-term value for our partners.”

The farm-down of the three projects builds on Ørsted’s existing partnership with ECP, which purchased a 50% equity stake in three wind farms and one solar farm in 2022 as part of Ørsted’s first-ever farm-down in the U.S. onshore market.

“Ørsted is excited to bring on ECP as a partner in these additional assets,” said Cody Castaneda, Head of Partnerships & M&A Americas at Ørsted. “Our continued partnership reflects the valuable benefits that our diverse portfolio provides for investors, and we’re grateful to ECP for sharing our commitment to supporting the expansion of renewables and American energy generation.”

"These projects are prime examples of the kind of large-scale clean energy infrastructure the U.S. needs to meet the growing demand for electricity,” said Matt Himler, Principal at ECP. “We’re pleased to expand our partnership with Ørsted, and to invest in their diversified portfolio of contracted solar and battery storage assets in high load growth markets. We look forward to leveraging our extensive sector expertise and track record in renewables to deliver carbon-free energy to Arizona and Texas."

With Mockingbird, Eleven Mile, and Sparta Solar officially online, Ørsted now has a portfolio of over 6 GW of onshore wind, solar, and battery storage projects in operation or under construction across the US.