Powerful Winds: Ørsted and Brookfield Forge Strategic Alliance

Orsted and Brookfield, together with its institutional partners and the publicly listed subsidiary Brookfield Renewable, have initiated a strategic partnership. Together, they will acquire 12.45% minority interests in four operational offshore wind farms of Orsted in the United Kingdom. These include Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension with a cumulative capacity of approximately 3.5 gigawatts. The transaction value amounts to USD 2.3 billion and will be executed through the world's largest infrastructure fund, the Brookfield Infrastructure Fund V. The transaction is expected to close by the end of 2024, subject to customary regulatory approvals. This business maneuver signifies significant progress for Orsted in its Farm-Down program, introduced in February as part of the current business plan. At the same time, a high level of value creation is maintained within the transaction. For Brookfield, the investment represents an opportunity to collaborate with Orsted, the leading company in the offshore wind energy sector. For Brookfield, it is a step towards expanding its presence in the offshore wind sector, a technology that perfectly complements its existing portfolio of solar energy and onshore wind energy. Orsted will still hold a 37.55% stake in the four facilities and will maintain its existing control and management structures. Additionally, Orsted will continue to be responsible for the operation and maintenance of the wind farms according to the current service contracts. The four affected assets are fully operational under long-term inflation-linked difference contracts.