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Nuclear energy

Apollo Invests $6.5 Billion in Offshore Wind Project Hornsea 3

Strategic Insights

— 2 min read

Apollo-managed funds have agreed to invest $6.5 billion in a 50% stake in Ã?rsted's Hornsea 3, the world's largest offshore wind project. The Hornsea 3 project has a capacity of 2.9GW and will generate enough power to supply over 3 million UK households. Apollo's investment includes the acquisition price for a 50% interest in the joint venture holding Hornsea 3, as well as a commitment to fund 50% of the project's remaining construction costs. The project's construction will be carried out by Ã?rsted under a full-scope EPC contract, and Ã?rsted will also provide long-term operations and maintenance services, as well as route-to-market for power generation.

Key Takeaways:

  • Apollo-managed funds will invest $6.5 billion in Hornsea 3, the world's largest offshore wind project, with a capacity of 2.9GW.
  • The investment includes the acquisition price for a 50% interest in the joint venture holding Hornsea 3, as well as a commitment to fund 50% of the project's remaining construction costs.
  • Over 3 million UK households will be powered by the Hornsea 3 project once completed.
  • The project's construction will be carried out by Ã?rsted under a full-scope EPC contract, with Ã?rsted also providing long-term operations and maintenance services, as well as route-to-market for power generation.
  • The Hornsea 3 transaction is subject to regulatory approvals and anticipated to close before year-end 2025.
  • Apollo Partner and Co-Head of European Credit Leslie Mapondera stated that Apollo looks to serve as a scaled provider of long-term and flexible capital solutions for leading companies and infrastructure.
  • The Apollo Funds will invest an estimated $3.25 billion upon close, with the remaining $3.25 billion to be funded as the project reaches certain construction and development milestones in the coming years.

Statistics:

  • $6.5 billion: Apollo-managed funds' investment in Hornsea 3
  • 2.9GW: Capacity of the Hornsea 3 project
  • 3 million: Number of UK households that will be powered by the Hornsea 3 project
  • $3.25 billion: Estimated amount that the Apollo Funds will invest upon close
  • $3.25 billion: Amount that the Apollo Funds will invest over time as the project reaches certain construction and development milestones

Sources:

  • GLOBE NEWSWIRE, "Apollo to Invest $6.5 Billion in Ã?rsted's Hornsea 3 Offshore Wind Project"
  • Apollo's website, "Apollo Invests $6.5 Billion in Offshore Wind Project Hornsea 3"

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