Orsted in talks to sell half of giant UK wind farm to Apollo

An American investment titan is negotiating to acquire a substantial 50 per cent share of Hornsea 3, which is set to become the world’s largest offshore wind farm, off the coast of Yorkshire. Orsted, the Danish energy company, is seeking a deal that would value the stake at around £4.25 billion, from the project’s total £8.5 billion cost. Construction commenced in 2023, and the site will be able to provide electricity to more than three million British homes once operational.

Apollo, a major New York-based asset manager overseeing some $840 billion, has entered talks with Orsted, which is contending with financial headwinds and political resistance to renewables in the United States under the Trump administration. Orsted initiated the sale process in 2024 and last month confirmed it had selected Apollo as its preferred bidder for the Hornsea 3 asset. The wind farm, with its impressive 2.9 gigawatt capacity, is expected to become operational in 2027 and is located 160 kilometres off the Yorkshire coast.

Orsted, formerly known as Dong Energy and once focused on oil and gas, has transformed into the world leader in offshore wind development. Yet the company has lately faced significant challenges, particularly with the US government’s adverse stance on offshore turbines. This was highlighted by President Trump’s directive to halt Orsted’s Revolution Wind project in Rhode Island. Following a federal judge’s intervention, construction on that site has now resumed. Pressure from rising costs and fluctuating interest rates has also impacted the company’s outlook both in the UK and overseas.

Plans for Hornsea 4 in the North Sea have been scrapped following a reassessment of project economics. Orsted pointed to these challenging conditions when it announced a £7 billion rights issue to address balance sheet concerns earlier this year, citing, in particular, the Trump administration’s obstructive policies in the US as a factor behind a failed stake sale in the Sunrise Wind project off New York. As Apollo looks to cement its interest in the UK’s offshore wind sector, a deal would come as a welcome fillip for Orsted, offering fresh capital and signalling renewed investor confidence in Britain’s renewable future.