FREDERICIA, Denmark– Ørsted has entered into an agreement with the D.E. Shaw Group to acquire a 100% equity interest in Rhode Island-based Deepwater Wind at a purchase price of $510 million.
Deepwater Wind’s portfolio has a total potential capacity of approximately 3.3GW comprising:
• Three offshore wind development projects in Rhode Island, Connecticut, Maryland, and New York totaling 810MW of capacity with long-term revenue contracts in place or pending finalization
• Approximately 2.5GW of offshore wind development potential across three well-sited BOEM lease areas in Massachusetts and Delaware. Of these 2.5GW, 1.2GW is developed through an equal joint venture with PSEG, a New Jersey utility.
Ørsted’s current US offshore wind portfolio has a total capacity of about 5.5GW comprising:
• Development rights for up to 2GW at the Bay State Wind site off the coast of Massachusetts owned in a joint venture with Eversource
• Development rights for up to 3.5GW at the Ocean Wind site off the coast of New Jersey
• In Virginia, Ørsted will be constructing two 6MW wind turbine positions for phase one of Dominion Energy’s Coastal Virginia Offshore Wind Project. Ørsted has exclusive rights with Dominion Energy to discuss the potential development of up to 2GW of offshore wind capacity.
After closing of the transaction, the name of the new organization will be Ørsted US Offshore Wind. It will be represented by a local management team headed by CEO Thomas Brostrøm, Co-CEO Jeff Grybowski, President and CFO David Hang, and COO Claus Bøjle Møller.
The transaction is subject to clearance by the US competition authorities and is expected to close by the end of 2018.