In a landmark clean energy transaction, Apollo Global Management and La Caisse de dépôt et placement du Québec (La Caisse) have agreed to acquire a 50% stake in the Hornsea 3 offshore wind and battery energy storage system (BESS) project from Orsted for $6.5 billion. This massive investment underscores the accelerating momentum of global renewable energy partnerships and signals a strong vote of confidence in the UK’s offshore wind ambitions. The deal not only strengthens Orsted’s capital base but also paves the way for the next phase of offshore wind growth and grid flexibility innovation.

The agreement between Apollo, La Caisse, and Orsted represents a carefully structured transaction blending equity and project debt, with both investors acquiring equal ownership and financing responsibilities. The total consideration—split evenly between a $3.25 billion equity value and $3.25 billion debt—will be paid in stages aligned with key construction milestones. For Orsted, the deal marks a major step in its strategic divestment and partnership programme aimed at recycling capital and strengthening its balance sheet for future developments. By retaining operational control and assuming construction-related risks, Orsted ensures seamless project execution while welcoming long-term institutional investors into one of the world’s largest renewable energy assets.

Located approximately 160 kilometers off the Yorkshire coast, the 2.9 GW Hornsea 3 offshore wind farm is set to become one of the most powerful renewable assets globally—capable of supplying clean energy to over 3 million UK homes. The project also integrates a 300 MW/600 MWh battery system at Orsted’s Swardeston site, designed to stabilize the UK grid and curb energy price volatility. Construction, already advancing on schedule, includes offshore foundation work and component fabrication, targeting full commercial operation by December 2027. With a total investment exceeding $10 billion, Hornsea 3 will play a pivotal role in achieving the UK’s decarbonization goals, supported by a 15-year Contract for Difference (CfD) that ensures revenue stability and investor confidence.

This transaction exemplifies how large-scale institutional capital is increasingly steering the renewable transition. Apollo and La Caisse’s involvement not only amplifies the project’s financial robustness but also reinforces the viability of hybrid wind-and-storage models in Europe’s evolving energy landscape. As CfD contracts expire, Hornsea 3’s flexible generation profile positions it strongly for future power purchase agreements (PPAs) or merchant market participation. With Orsted continuing to manage operations from its East Coast O&M hub, the project stands as a model of collaboration—uniting financial innovation, engineering excellence, and sustainability leadership.
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Apollo and La Caisse’s $6.5 billion commitment to Hornsea 3 marks a defining moment in renewable infrastructure investment—one that blends strategic capital allocation with global sustainability impact. As the world pivots toward net-zero targets, this partnership showcases the transformative potential of collaborative financing and advanced energy integration.

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