Renewable energy group Orsted (OTC:DNNGY) disclosed the sale of a 50% equity stake in three U.S. onshore projects to Energy Capital Partners valued at $572 million.
The divested assets include Mockingbird Solar (468 MW) and Sparta Solar (250 MW) in Texas, as well as the Eleven Mile Solar Center in Arizona, featuring 300 MW of solar and 300 MW/1,200 MWh of battery storage.
All projects, set to begin operations in 2024, have secured tax equity partnerships and power purchase agreements.
The transaction aligns with Ørsted's ongoing divestment strategy and provides proceeds to advance its mid- and long-term goals.
Ørsted will retain a 50% equity stake in the three projects and continue to operate them throughout their lifespan.
Financial closing will occur across multiple project companies, with the transaction's impact recognized in the fourth quarter of 2024 and the first quarter of 2025, pending certain conditions precedent.
In 2024, Ørsted secured approximately $734 million in upfront proceeds for these projects from tax equity partner J.P. Morgan and signed its first long-term tax credit transfer agreement for Mockingbird Solar Center.
Combined with the sales price from the divestment, the total proceeds for the three projects amount to $1.306 billion.
James Giamarino, Head of Commercial in Region Americas at Ørsted, said, "These transactions reflect our close engagement with a range of commercial partners, including our tax equity and transferability partners, which are all key to the growth of Ørsted's US onshore portfolio."
Matt Himler, Principal at ECP, added, "These projects are prime examples of the kind of large-scale clean energy infrastructure the US needs to meet the growing demand for electricity."
"We're pleased to expand our partnership with Ørsted and to invest in their diversified portfolio of contracted solar and battery storage assets in high load growth markets. We look forward to leveraging our extensive sector expertise and track record in renewables to deliver carbon-free energy to Arizona and Texas."
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