Ørsted and Eversource announced that they have entered into a 50-50 partnership for key offshore wind assets in the Northeast.

Eversource is paying approximately $225 million USD for a 50 percent interest in Ørsted’s Revolution Wind and South Fork Wind Farm projects, as well as the 257-square-mile tract off the coasts of Massachusetts and Rhode Island. Ørsted acquired all three assets in November 2018 as part of its Deepwater Wind transaction.

This transaction builds upon the companies’ Bay State Wind partnership, which is a 50-50 collaboration on a separate 300-square-mile ocean tract adjacent to the Deepwater Wind area. Together, Bay State Wind and the Deepwater Wind lease sites jointly owned by Eversource and Ørsted could eventually host at least 4,000 megawatts of offshore wind. The two companies will jointly manage permitting requirements for upcoming projects and will honor all planned local investments and agreements entered prior to this partnership.

In addition to the ocean tract, the partnership includes the following active offshore wind projects:

• Revolution Wind (700MW), located approximately 15 miles south of the Rhode Island coast, will deliver power to Rhode Island (400MW) and Connecticut (300MW). Revolution Wind is expected to reduce CO2 emissions by millions of tons of carbon dioxide a year, and it will generate enough energy to power more than 400,000 homes. Subject to permitting, finalized power purchase agreements and final investment decisions by Ørsted and Eversource, Revolution Wind is expected to be commissioned in 2023.

• South Fork Wind Farm (approximately 130MW), located 35 miles east of Long Island, will interconnect into eastern Long Island where it will deliver power to households under a long-term power purchase agreement with the Long Island Power Authority. This wind farm will be the largest source of renewable energy on Long Island, which will help the towns of East Hampton and Southampton meet their 100% renewable energy goals, and New York State achieve its ambitious clean energy mandate. South Fork will generate enough energy to power 70,000+ homes. Subject to permitting, further development, and final investment decisions by Ørsted and Eversource, South Fork is expected to be commissioned by the end of 2022.

Tags:
Ørsted   Eversource   M&A   Offshore wind  

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