Ørsted A/S has divested a 50% equity stake in three US onshore projects to Energy Capital Partners (ECP), a prominent investor focused on energy transition.
This transaction is part of Ørsted’s ongoing divestment program and includes two solar farms in Texas—Mockingbird Solar with a capacity of 468 MW and Sparta Solar with 250 MW—as well as the Eleven Mile Solar Center, which features 300 MW of solar capacity and 300 MW/1,200 MWh of battery storage in Arizona. All three projects are set to commence operations in 2024 and have established tax equity partnerships and power purchase agreements.
The total value of this transaction is USD 572 million, which aligns with Ørsted’s strategic goals and supports its mid- and long-term targets. Ørsted will maintain a 50% equity ownership interest in these projects and will continue to oversee their operations throughout their lifespan. The financial closing of the transaction will occur across different project companies, with the total impact recognized in the reporting periods of Q4 2024 and Q1 2025, subject to certain conditions.
In addition to this divestment, Ørsted raised approximately USD 734 million in upfront proceeds for these projects from tax equity partner J.P. Morgan earlier this year. The combined sales price from the divestment and tax equity funding brings the total proceeds raised for these three projects to USD 1.306 billion.
The partnership with ECP builds on Ørsted’s existing relationship with the firm, which previously acquired a 50% equity stake in three wind farms and one solar farm from Ørsted in 2022, marking Ørsted’s first farm-down in the US onshore market.
With Mockingbird Solar, Eleven Mile Solar Center, and Sparta Solar officially online, Ørsted’s portfolio now exceeds 6 GW of onshore wind, solar, and battery storage projects either operational or under construction across the United States.
