PROVIDENCE – Ørsted U.S. Offshore Wind and Eversource have entered into a partnership, with Eversource paying Ørsted $225 million for a 50 percent interest in the Revolution Wind and South Fork Wind offshore wind energy projects, the companies accounced Friday. In addition, the company purchased a 257-square-mile tract of ocean that Ørsted predecessor Deepwater Wind won in a federal auction, and which is where the Revolution Wind project will be located.
All three assets were Deepwater Wind assets acquired by Ørsted when it paid $510 million for Deepwater in November.
The Revolution Wind project includes both the 400-megawatt wind farm that will supply Rhode Island as well as a 300-megawatt project that will supply Connecticut (although the company said in June that the Connecticut project would generate 200 megawatts). The South Fork Wind Farm is located east of Montauk, N.Y., and will supply the Long Island Power Authority.
Eversource and Ørsted already have partnered on the proposed Bay State Wind Farm, which would supply Massachusetts. The companies participated in the first wind farm bidding process in Massachusetts, which selected Vineyard Wind to build the project.
The two companies said that the tracts on which Eversource and Ørsted will collaborate have the potential to generate at least 4,000 megawatts of offshore wind.
A spokesperson for Ørsted said that Eversource invested in the project with an unregulated arm of the local utility.
“Eversource, like National Grid, has both regulated businesses and unregulated businesses,” she said. “Unregulated arms of these local utilities are allowed to invest as any other company can, subject to certain rules. Eversource strictly adheres to all applicable laws and regulations governing such transactions.”
“We are excited to have Eversource join us as we embark on the creation of the strongest U.S. offshore wind platform,” stated CEO of Ørsted U.S. Offshore Wind and President of Ørsted North America Thomas Brostrøm. “With their expansive knowledge of the energy market throughout the region, and by building on both company’s community outreach programs, we are on track to ensure that the Northeast will be the North American hub for offshore wind energy.”
The partnership will not impact the proposed contract with National Grid Rhode Island for the Revolution Wind Farm and will not change the company’s Rhode Island commitments, Ørsted said Friday.
“Offshore wind will provide a growing and critical source of zero-carbon energy in a region with very aggressive carbon reduction and renewable energy goals,” stated Eversource Executive Vice President for Enterprise Energy Strategy and Business Development Lee Olivier. “This transaction solidifies our partnership as the strongest developer of offshore wind in the Northeast and is consistent with Eversource’s efforts to be a key catalyst for clean energy development in our region.”
Chris Bergenheim is the PBN web editor. Email him at Bergenheim@PBN.com.