Core Insights - Ørsted A/S has signed an agreement to divest a 50% ownership interest in its 2.9 GW Hornsea 3 Offshore Wind Farm to Apollo Global Management for approximately DKK 39 billion ($5.6 billion), marking a significant step in Ørsted's capital recycling strategy [1][4]. Financial Details - The transaction includes around DKK 20 billion payable at closing, consisting of a DKK 10 billion equity purchase and a DKK 10 billion construction payment, with the remainder linked to future project milestones [3]. - The total project investment remains within Ørsted's DKK 70–75 billion estimate, and the transaction is expected to have a neutral lifetime EBITDA effect, not impacting Ørsted's 2025 earnings or gross investment guidance [3][4]. Strategic Implications - This divestment is part of Ørsted's broader partnership and divestment program aimed at freeing up capital for reinvestment in new renewable projects, following a rights issue earlier this year to support ongoing offshore wind development [4]. - The deal contributes to Ørsted's plan to complete the world's largest contiguous offshore wind zone, Hornsea 1, 2, and 3, totaling over 5 GW of installed capacity off the Yorkshire coast [4]. Market Context - Hornsea 3, located 160 km off northern England, is expected to generate enough clean energy to power more than 3 million UK homes once operational, highlighting the continued institutional investor appetite for large-scale renewable infrastructure [5]. - For Apollo, this acquisition expands its footprint in global clean energy assets amid increasing private equity interest in European offshore wind [5].