Macquarie Group (ASX:MQG) is reportedly exploring the potential sale of its subsidiary, Corio Generation, one of the world's largest offshore wind developers.
The financial group has reportedly engaged advisors to evaluate options for a full or partial stake sale later this year.
Corio oversees a 30-gigawatt pipeline of offshore wind projects across Europe, Asia-Pacific, and the Americas, including 5 GW of projects in the UK, such as the West of Orkney in Scotland and Outer Dowsing off England’s east coast.
Macquarie is expected to gauge interest from select strategic and financial investors, the sources said, requesting anonymity due to the confidential nature of the information.
Representatives from Macquarie and Corio declined to comment on the matter.
The transition away from fossil fuels has spurred significant investments in offshore wind energy, which offers higher power output compared to onshore installations.
However, rising material costs, infrastructure demands, supply chain disruptions, and design issues have increased the overall expense of developing such projects.
The valuation of Corio will depend on how investors assess the profitability and feasibility of its projects, which require substantial capital to bring online.
The potential sale follows Macquarie's 2022 partnership with the Ontario Teachers' Pension Plan to support Corio’s development pipeline.
Despite the potential divestment, Macquarie intends to remain active in the offshore wind sector through its managed funds.
In July, its funds acquired full ownership of the 194-MW Lynn and Inner Dowsing offshore wind farms in the UK.