EnergyWatch

Ørsted eyes opportunity in farmdown model for onshore farms

Last quarter, the Danish power company completed the first farmdown divestment within its onshore wind business, thus whetting the group’s appetite, says CFO.

Photo: PR Ørsted

Ørsted has operated the farmdown model for the offshore wind business for a long time – and successfully.

Farmdowns mean the utility develops a facility, which after commissioning is partially divested, for example, by 50%.

Looking forward, the method could also become a big thing for the onshore wind business, says Ørsted Chief Financial Officer Daniel Lerup in connection with the group’s third-quarter interim report.

”We are used to it with Offshore and have for some time been looking at whether it would be interesting to do something similar with our Onshore business. We found that it would, so we have carried out a 50% divestment of a portfolio in the US. This helps being able to finance further development – not only in the US but also globally,” the CFO says:

”This has clearly whetted our appetite regarding growing the business.”

On Oct. 21, Ørsted announced that it had sold a portfolio consisting of three US onshore wind projects and one solar farm – worth roughly USD 410m in total.

That was the first time Ørsted sold partial interest in onshore wind projects.

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