Offshore wind developer Ørsted has teamed up with New England energy company and transmission builder Eversource. The companies have entered into a 50/50 partnership for key offshore wind assets in the Northeast.
Eversource is paying approximately $225 million for a 50% interest in Ørsted’s Revolution Wind and South Fork Wind Farm projects, as well as a 257-square-mile ocean tract off the coasts of Massachusetts and Rhode Island. Ørsted acquired all three assets last fall as part of its Deepwater Wind transaction.
This transaction builds upon the companies’ Bay State Wind partnership, which is a 50/50 collaboration on a separate 300-square-mile ocean tract adjacent to the Deepwater Wind area. Together, Bay State Wind and the Deepwater Wind lease sites jointly owned by Eversource and Ørsted could eventually host at least 4 GW of offshore wind.
The two companies will jointly manage permitting requirements for upcoming projects and will honor all planned local investments and agreements entered prior to this partnership.
“We are excited to have Eversource join us as we embark on the creation of the strongest U.S. offshore wind platform,” says Thomas Brostrøm, CEO of Ørsted U.S. Offshore Wind and president of Ørsted North America. “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.”
“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,” adds Lee Olivier, Eversource’s executive vice president for enterprise energy strategy and business development. “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.”