Ørsted announced it is divesting a 50% equity stake in three U.S. onshore projects to Energy Capital Partners (ECP), a leading energy transition-focused investor and the largest private owner of power generation and renewables in the US. The farm-downs include two solar farms in Texas, Mockingbird Solar (468 MW) and Sparta Solar (250 MW), and Eleven Mile Solar Center, a 300 MW solar and 300 MW/1,200 MWh battery storage project in Arizona. With operations commencing in 2024, all three projects have tax equity partnerships and power purchase agreements in place.
The value of this transaction is $572 million, representing continued execution on Ørsted’s divestment program and generating proceeds to support our progress towards our mid- and long-term targets. Ørsted will retain a 50% equity ownership interests in the three projects and will continue to operate the projects over their lifespan. As the financial closing of the transaction is across different project companies, the total impact from the transaction will be recognized across the reporting periods Q4 2024 and Q1 2025 and subject to certain conditions precedent.
This year, Ørsted raised approximately $734 million in up front proceeds for these projects from tax equity partner, J.P. Morgan, and subsequently signed its first long-term tax credit transfer agreement for Mockingbird Solar Center. The sales price relating to the divestment and tax equity funding bring the total proceeds raised for the three projects to over $1.3 billion…