Apollo Global Management has agreed to invest $6.5bn in Ørsted’s Hornsea 3 offshore wind farm in the UK, marking one of Europe’s largest renewable energy deals this year and strengthening Apollo’s position as a major investor in the region’s energy transition.

The transaction gives Apollo a 50% stake in Hornsea 3, Ørsted’s largest project currently under construction, and commits the U.S. private equity firm to fund half of the remaining investment required to complete the wind farm. Once operational, Hornsea 3 will deliver clean electricity to millions of homes under a 15-year fixed-price contract, with Apollo set to receive the majority of the project’s cash flow during that period.

The deal is a key milestone in Ørsted’s financial turnaround after a series of setbacks in the U.S. offshore wind market. It follows a $9.4bn capital raise and the company’s refocus on European operations. 

Adam Petrie, Partner at Apollo Infrastructure, commented, “Ørsted is a global leader in offshore wind power and Hornsea 3 is its most significant project yet, with capacity to bring reliable, renewable energy to millions of homes across the UK.”

For Apollo, the investment builds on a series of major energy transactions in Europe. The firm recently acquired a €3.2bn ($3.7bn) stake in RWE’s German power grid business and helped EDF raise £4.5bn ($5.9bn) in private bond placements to finance the UK’s Hinkley Point C nuclear plant and other energy investments.

The Hornsea 3 agreement reinforces Apollo’s long-term commitment to Europe’s clean energy build-out and highlights private capital’s increasing role in funding the continent’s energy infrastructure.

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