Apollo Global Management Inc. has agreed to invest $6.5 billion in Orsted A/S’s Hornsea 3 offshore wind project in the UK, one of the largest in the world.

This deal involves Apollo taking a 50% stake in the joint venture that manages Hornsea 3 and commits to covering 50% of the project's remaining construction costs.

This investment comes about six months after Orsted canceled its plans for the Hornsea 4 wind farm, which was a significant setback for the UK’s goals to expand clean energy in the coming years.

Orsted has faced several challenges this year, especially as the US wind market has been struggling. In response, the company is now focusing more on its offshore operations in Europe, where it has been a leader in the industry since the late 1990s.

In October, Orsted raised 60 billion Danish kroner (about $9.3 billion) through a rights offering, which is considered essential for helping the company navigate the downturn in the wind-power sector.

The Hornsea 3 project will be Orsted’s third gigawatt-scale initiative in the Hornsea zone of the North Sea. Once completed, it will have a capacity of 2.9 gigawatts, enough to provide power to over 3 million households in the UK, according to the statement.

The transaction for Hornsea 3 needs regulatory approvals and is expected to be finalized before the end of 2025.