Stonepeak, an alternative investment firm specializing in infrastructure and real assets, has entered into a significant transaction with Ørsted, marking its first foray into partnership with the global leader in green energy.
In a deal valued at approximately $300 million, Stonepeak will acquire an equity ownership stake in a portfolio of four US onshore wind farms, with a combined capacity of 957 MW.
This strategic acquisition aligns with Stonepeak’s commitment to investing in infrastructure that supports the energy transition, leveraging the growing demand for renewable energy sources.
The portfolio, spanning three states and consisting of the Ford Ridge Wind project in Illinois, the Helena Wind and Western Trail Wind projects in Texas, and the Sunflower Wind project in Kansas, underscores the geographic and market diversity of the investment.
These operational wind farms, which are part of the Electric Reliability Council of Texas (ERCOT), Midcontinent Independent System Operator (MISO), and Southwest Power Pool (SPP) markets, have power purchase agreements in place, ensuring stable and predictable returns.
As part of the agreement, Stonepeak will receive 80% of the cash distributions from the projects, while Ørsted retains operational control and a unilateral call option on Stonepeak’s interests under specific conditions post-transaction.
This arrangement allows Ørsted to continue its stewardship over the assets, ensuring operational excellence and long-term value creation, while also enabling the company to recycle capital into future growth projects within the renewable energy sector.
Anthony Borreca, Senior Managing Director at Stonepeak, expressed confidence in the potential of the acquired assets to make a positive, long-term impact on the communities they serve.
The partnership with Ørsted, recognized for its commitment to green energy and climate action, provides a solid foundation for Stonepeak’s investment in the renewable infrastructure space.
This transaction is part of Ørsted’s broader strategy to divest ownership stakes in operational assets to fund its pipeline of future renewable energy projects.
It also reflects the company’s flexible approach to partnerships and capital recycling, aimed at maximizing stakeholder value and supporting its growth in the renewable energy sector.
Ørsted’s expansive portfolio in the US, nearing 6 GW of onshore wind, solar, and battery storage projects, alongside Stonepeak’s substantial assets under management, highlights the growing synergy between traditional finance and renewable energy investment.
This deal not only signifies Stonepeak’s entry into a significant and growing segment of the energy market but also reinforces the investment firm’s role in advancing the transition to renewable energy sources.
PEVCJournal.com