Ørsted to divest French onshore operations to ENGIE to refocus on strategic European markets

Ørsted, a global leader in renewable energy, has entered into a definitive agreement to sell its French onshore wind and solar operations to ENGIE. This strategic divestiture involves the transfer of OSTWIND International S.A.S., OSTWIND Engineering S.A., and their subsidiaries, collectively known as Ostwind France. The deal is set to finalize in the second quarter of 2024, marking Ørsted’s exit from the French market to prioritize other key European regions.

This divestment aligns with Ørsted’s revised business plan, which sharpens the focus on markets where the company sees the greatest value creation potential. Kieran White, Senior Vice President and Head of Onshore in Region Europe at Ørsted, highlighted the strategic shift: “As part of our updated business plan, we revised our build-out ambitions towards 2030 with an emphasis on where we believe we can realize the most value for Ørsted. Building on this plan, we’ve decided to concentrate our efforts on the UK, Irish, German, and Spanish markets for onshore wind and solar, in Europe.”

ENGIE, a global energy and services group, is set to take over Ostwind France, which has been an active player in the renewable energy sector for over 20 years. The acquisition includes 54 MW of operational assets and 24 MW of wind projects currently under construction, along with a robust pipeline of future projects.

Ostwind France was part of Ørsted’s acquisition of the French and German onshore platforms from Ostwind AG in 2022. While Ørsted fully integrated the German operations and continues to expand its renewable energy projects there, the French operations no longer align with its strategic focus.

The divestment signifies Ørsted’s strategic exit from the French renewable market, as the company aims to strengthen its presence and invest more aggressively in the UK, Ireland, Germany, and Spain. These markets are deemed more aligned with Ørsted’s long-term strategic goals and offer significant opportunities for growth in onshore wind and solar energy.

For ENGIE, acquiring Ostwind France presents an opportunity to enhance its existing portfolio of renewable energy assets and further establish its position in the renewable energy sector in France. ENGIE will benefit from the established operations and ongoing projects of Ostwind France, ensuring a smoother transition and continued growth in the sector.

Ørsted’s focus will remain on developing its robust pipeline of onshore wind and solar PV projects in its selected European markets. This strategic consolidation is expected to streamline operations and focus resources on regions with the highest potential for growth and profitability in the renewable energy landscape.