Ørsted has signed an agreement to acquire Public Service Enterprise Group’s (PSEG) 25% equity stake in the 1,100 MW offshore wind energy project Ocean Wind 1, to be located approximately 24 kilometers off the coast of southern New Jersey in the U.S. The acquisition provides Ørsted with 100% ownership of Ocean Wind 1.
As Ocean Wind 1 continues its planning and development, Ørsted will ensure the project delivers affordable energy to New Jersey while providing economic opportunity across the state and region. PSEG will support onshore infrastructure construction.
“PSEG has been a valuable partner as we’ve advanced Ocean Wind 1 to this point, and as we’ve successfully advanced our offshore wind vision in the U.S.,” says David Hardy, executive vice president and CEO of Region Americas at Ørsted. “With a well-established presence in the US, we’re confident in our ability to drive the project forward with commercial operations beginning as planned.”
“As Ocean Wind 1 has evaluated the optimal way to move forward, it’s become clear that it’s best for the project for PSEG to step aside and allow for a better positioned investor to join the project, so that it can proceed with an optimized tax structure,” comments Lathrop Craig, senior vice president and chief commercial officer at PSEG. “While this was a difficult decision, it was driven by the best interests of the project and New Jersey’s offshore wind goals. PSEG will continue to actively support offshore wind in New Jersey and the region.”
The transaction between Ørsted and PSEG is expected to close in the first half of 2023, pending the required closing conditions. The first power from Ocean Wind 1 is scheduled for the end of 2024, and full commissioning is expected in 2025.