Ørsted, a leader in renewable energy, has announced the divestment of a 50% equity stake in three major US-based projects to Energy Capital Partners (ECP), a prominent investor in energy transition infrastructure. This deal forms part of Ørsted’s ongoing divestment strategy and aligns with its goal to recycle capital into high-growth renewable energy assets. The projects include two solar farms in Texas—Mockingbird Solar (468 MW) and Sparta Solar (250 MW)—and the Eleven Mile Solar Center in Arizona, which combines 300 MW of solar capacity with 300 MW/1,200 MWh of battery storage.

Valued at USD 572 million, this transaction will help Ørsted meet its sustainability and capital efficiency objectives. The company will retain a 50% ownership stake in the projects and continue to manage their operations over the long term. The deal’s financial impact will be recognized in Ørsted’s reports for Q4 2024 and Q1 2025.

The total value raised for these projects, including USD 734 million in tax equity funding from J.P. Morgan, amounts to over USD 1.3 billion. This capital will support Ørsted’s renewable energy portfolio expansion in North America, enabling further investments in the clean energy transition.

For the chemical industry, Ørsted’s expanding portfolio of solar and battery storage projects offers significant potential. Chemical manufacturers, under increasing pressure to reduce carbon emissions, are seeking reliable, low-carbon power sources. Ørsted’s projects can provide this clean, sustainable energy, helping the chemical sector meet both operational and sustainability goals.

Ørsted’s partnership with ECP builds on their successful 2022 collaboration, when ECP acquired a 50% stake in three wind farms and one solar farm. This new farm-down further strengthens Ørsted’s position as a key player in the US clean energy market. Ørsted now has over 6 GW of onshore wind, solar, and battery storage assets either operational or under construction across the US.

James Giamarino, Head of Commercial for Region Americas at Ørsted, commented, “This partnership reflects our strategic engagement with commercial partners who share our vision for a sustainable energy future. Our projects support industries, including chemicals, that need clean energy solutions to meet their long-term sustainability targets.”

ECP, which specializes in large-scale clean energy infrastructure, will help address growing electricity demand in key markets like Arizona and Texas. Matt Himler, Principal at ECP, added, "These projects are prime examples of the large-scale clean energy infrastructure needed to support growing industrial sectors.”

This transaction underscores Ørsted’s continued leadership in driving the clean energy transition while providing essential solutions for industries like chemicals looking to decarbonize and secure sustainable power sources.