Apollo Global Management, through its funds, has agreed to take a 50% equity stake in Orsted’s 2.9-gigawatt Hornsea 3 offshore wind farm off the coast of Yorkshire, England.

The Apollo-managed funds are expected to invest approximately US$6.5 billion. The transaction includes a commitment from Apollo to fund 50% of the payments under the engineering, procurement, and construction ( EPC ) contract for the wind farm and the offshore transmission asset. Linklaters advised Apollo on the deal.

As part of the agreement, Orsted will construct the Hornsea 3 project under a full-scope EPC contract, and provide long-term operations and maintenance ( O&M ) services from its East Coast O&M hub. It will also provide the incoming partner with balancing services and a long-term route to market for the renewable electricity the project will generate.

Hornsea 3 is located 160 kilometres off the Yorkshire coast in northern England. Once operational, Orsted’s Hornsea zone – comprising Hornsea 1, 2, and 3 – will have a total capacity of more than 5GW, making it the world’s largest operating offshore wind zone.

“We’re pleased to welcome Apollo as a partner for Hornsea 3, as they bring infrastructure expertise and scaled capital,” says Orsted chief financial officer Trond Westlie. “The divestment represents an important milestone for Orsted as we continue to deliver on our partnership and divestment programme, which is a cornerstone of our business plan.”

Orsted recently strengthened its capital structure with the completion of a 60 billion kroner ( US$9.29 billion ) rights issue. The Danish government, which owns a 50.1% stake in the company, took up its rights in full.