Orsted splurges $500m on US wind farm owner

Renewables news
A wind turbines stands at the Mohawk Point Wind Farm outside of Lowbank, Ontario, Canada, on Wednesday, June 15, 2011. Photographer: Norm Betts/Bloomberg

Orsted has agreed to buy Rhode Island-based Deepwater Wind from D.E. Shaw Group for $510 million.

Deepwater Wind’s portfolio has a total potential capacity of about 3.3GW, comprising:

o Block Island (30MW), the only operational offshore wind farm in the US

o 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.

o 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 leading New Jersey utility.

Martin Neubert, CEO of offshore wind at Orsted, said: “With this transaction we’re creating the number one offshore wind platform in North America, merging the best of two worlds: Deepwater Wind’s longstanding expertise in originating, developing and permitting offshore wind projects in the US, and Orsted’s unparalleled track-record in engineering, constructing, and operating large-scale offshore wind farms.

“Today’s announcement consolidates Orsted’s position as the global market leader in offshore wind with a strong foothold across Europe, North America and Asia-Pacific.

“D.E. Shaw & Co. has been a dedicated owner of Deepwater Wind with a vision to pioneer offshore wind in the US and being at the innovative forefront of technology investment. We are excited to continue this journey and take the industry to the next level.”