Apollo will invest more capital in European energy infrastructure in 2025 than ever before.

The US private equity firm recently announced that it is taking a 50% stake in Danish offshore developer Ørsted’s British wind farm „Hornsea 3“ for 6.5 billion dollars, and will finance half of the project’s remaining construction.

The total volume of Apollo’s new investments in European energy infrastructure this year thus rises to a record 17 billion dollars. In Germany, Apollo invested 3.2 billion euros in a joint venture with RWE which holds a 25 per cent stake in Dortmund-based transmission system operator Amprion. And for French energy company EDF, Apollo provided 4.5 billion pounds in financing for the „Hinkley Point C“ nuclear power plant in the UK.

At the SuperReturn private equity conference in Berlin in June, Apollo Co-President Jim Zelter announced plans to invest 100 billion dollars in Germany over the next decade.

For Apollo, energy infrastructure investments with predictable, regulated returns are particularly well suited for its insurance arm Athene, whose portfolio must comply with strict solvency requirements. Once the Ørsted wind farm is completed, its power will be sold at fixed, contractually agreed prices for 15 years. During that period, Apollo will receive most of the revenues stemming from the government’s subsidy contract, which takes effect once the facility goes online. Analysts say Ørsted is assuming all risks of delays and cost overruns under the deal.

Ørsted’s business model is to develop offshore wind farms and later sell stakes to fund new projects. The Danish state remains its majority owner.

The Hornsea 3 stake sale, together with a recently completed 9 billion euros capital increase, marks the latest stage in Ørsted’s financial recovery. The divestment forms part of a restructuring program launched by CEO Rasmus Errboe to restore the company’s health.