Apollo announced that funds managed by the firm will invest $6.5 billion for a 50% stake in Ørsted’s Hornsea 3, the world’s largest offshore wind farm under development in the North Sea. The investment includes the acquisition of a 50% interest in the joint venture holding Hornsea 3, as well as funding for half of the project’s remaining construction costs.
Hornsea 3 represents Ørsted’s third gigawatt-scale wind project in the Hornsea zone and, when completed, will generate 2.9GW of capacity—enough renewable electricity to power over 3 million UK homes. Under the agreement, Ørsted will continue to construct the project under a full-scope EPC contract while also managing long-term operations, maintenance, and power market activities.
Apollo’s investment positions the firm as a co-owner in one of the most significant renewable energy developments in Europe. The transaction is expected to close by the end of 2025, pending regulatory approvals. Approximately $3.25 billion of the capital will be invested at closing, with the remaining $3.25 billion funded as the project reaches key construction milestones.
Ørsted selected Apollo for its ability to provide a long-term equity and financing solution at scale for a project of this magnitude. Apollo-managed entities are leading the senior financing, with underwriting support from BNP Paribas, ING Bank, Lloyds, and RBC Capital Markets. Co-investors include La Caisse (formerly CDPQ), participating in both equity and debt, and PSP Investments, which is contributing to the debt financing.
The deal builds on Apollo’s growing track record of large-scale infrastructure and energy transition investments across Europe. The firm has recently committed €3.2 billion to support the expansion of Germany’s energy grid, £4.5 billion in financing for EDF’s Hinkley Point C nuclear power project, and more than $4.5 billion in investments with BP, including non-controlling stakes in its TANAP and TAP pipelines.
Advisors/counsel: Legal counsel to the Apollo Funds was provided by Linklaters, with RBC Capital Markets serving as financial advisor. Paul, Weiss, Rifkind, Wharton & Garrison acted as lender’s counsel.
KEY QUOTES:
“Ørsted is a global leader in offshore wind power and Hornsea 3 is its most significant project yet, with capacity to bring reliable, renewable energy to millions of homes across the UK. Through this investment, we are proud to deliver a scaled and comprehensive solution for infrastructure that will promote energy security and the UK’s net zero ambitions.”
Adam Petrie, Apollo Infrastructure Partner
“We’re pleased to welcome Apollo as a partner for Hornsea 3, as they bring infrastructure expertise and scaled capital. We look forward to working with them to deliver this important project that will produce enough electricity to power more than 3 million UK homes once completed and contribute to the renewable transformation of the UK. The divestment represents an important milestone for Ørsted as we continue to deliver on our partnership and divestment program, which is a cornerstone of our business plan.”
Trond Westlie, Group CFO, Ørsted
“At Apollo, we look to serve as a scaled provider of long-term and flexible capital solutions for leading companies and infrastructure. We are pleased to partner with Ørsted on this transaction where Apollo Fund capital can help to power over 3 million UK homes. This is the latest large-scale transaction here in Europe where we are investing behind energy infrastructure, transition assets, AI and other key priorities.”
Leslie Mapondera, Partner and Co-Head of European Credit, Apollo
