Ørsted divests 50% of US offshore wind assets for $225m

Ørsted has sold 50% of the recently acquired New England offshore wind assets to Eversource for nearly $225m.

The divestment includes 704MW Revolution Wind and nearly 130MW South Fork assets.

Two undeveloped New England lease areas called Massachusetts North and Massachusetts South are also part of the sale.

Since 2016, Ørsted and Eversource are partners in the Massachusetts Bay State Wind offshore power project. The latest deal is expected to strengthen their existing 50:50 partnership in the North-East.

Ørsted executive vice-president and CEO Martin Neubert said: “More than ever, the US offshore wind market has great growth potential with several states committing to significant buildout volumes.

“I’m delighted to extend our strategic partnership with Eversource in the north-east and welcome them to our new offshore wind projects, which will enable the joint venture to harvest synergies across the different New England projects.”

Revolution Wind will be nearly 15 miles south of Rhode Island coast. It will supply power to Connecticut and Rhode Island. The site is expected to be commissioned in 2023, subject to permission, power purchase agreements and final investment decisions by Ørsted and Eversource.

The South Fork site is 35 miles east of Long Island. Once developed, it will deliver power to households under a long-term power purchase agreement with the Long Island Power Authority.

This offshore wind asset is slated for commissioning by the end of 2022, subject to further development, permitting and final investment decisions.

Eversource executive vice-president for enterprise energy strategy and business development Lee Olivier said: “We are excited to grow our partnership with Ørsted, and we look forward to working with the local communities where these projects exist, where we will honour all existing commitments and work collaboratively to deliver a clean energy transformation to homes and businesses throughout the region.”

Last month, Ørsted announced record profits for 2018, recording an operating profit of kr30bn and a net profit of kr19.5bn.