Energy giant Shell and EDF Renewables have announced the formation of an offshore wind joint venture.
The 50/50 collaboration will see the two firms work together on large-scale offshore wind projects in the US and involves the formation of a firm called Atlantic Shores Offshore Wind.
The joint venture has the potential to produce a mammoth 2,500 megawatts (MW) of energy capacity, enough to power almost a million homes.
The US offshore lease is within the New Jersey Wind Energy Area (WEA).
The lease comprises 183,353 acres, about eight miles off the coast of Atlantic City on the U.S. Outer Continental Shelf (OCS).
Shell say the area offers “strong and steady wind resources in relatively shallow water, close to large population centers with associated electricity demand”.
Dorine Bosman, vice president of Shell wind development, said:”Shell has bold ambitions to grow our renewable power business and we see great potential in U.S. offshore wind.
“Gaining access to this acreage in New Jersey complements our successful entry to Massachusetts and our existing renewable generation business.
“Building on the strength of our brand and global presence allows us to continue providing our customers with more and cleaner energy.”
EDF Renewables already has 2,800 MW of offshore wind in development or operation in Europe (Belgium, France, Germany and United Kingdom.
The firm will look to develop the 450MW planned Neart na Gaoithe Offshore Wind Farm in the Firth of Forth, granted a Contract for Difference (CfD) in 2015.
Tristan Grimbert, president and CEO of EDF Renewables North America, said: “The opportunity supports the EDF Group’s aim to double global renewable capacity to 50 gigawatts by 2030.
“It solidifies EDF Renewables’ ambitions to leverage its depth of experience in the European offshore wind market in the emerging U.S. market.
“As the costs of offshore wind are declining, the U.S. offshore wind industry is quickly advancing with strong Federal and State support.
“The industry is well-positioned to meaningfully contribute to the New York and New Jersey economies through employment and supply chain opportunities.”