Apollo will invest $6.5 billion in a 50% stake of Ørsted's Hornsea 3 project, aimed at facilitating the UK's renewable energy ambitions.

Target Information

Apollo (NYSE: APO) has announced that its managed funds will invest $6.5 billion in acquiring a 50% stake in Ørsted's Hornsea 3 project, the world's largest offshore wind initiative. This substantial investment not only covers the acquisition of the joint venture but also represents a commitment to fund half of the project's remaining construction costs.

Hornsea 3 marks Ørsted's third gigawatt-scale project located in the North Sea's Hornsea zone, boasting a total capacity of 2.9GW—sufficient to supply renewable electricity to over 3 million households in the UK. Under this agreement, Ørsted retains the responsibility of constructing the wind farm through a comprehensive EPC contract, and will also manage long-term operations and maintenance services along with the marketing of the generated power.

Industry Overview

The offshore wind industry in the UK is rapidly evolving, driven by a significant push towards renewable energy sources. The UK government has set ambitious targets to generate 40GW from offshore wind by 2030 as part o