Danish energy company and offshore wind developer Ørsted has entered into an agreement with the D.E. Shaw Group to acquire a 100% equity interest in Deepwater Wind at a purchase price of $510 million.
The two companies’ assets will be merged into one U.S. offshore wind platform. Once the deal closes – expected by the end of the year, subject to clearance by the U.S. competition authorities – the combined organization will be named Ørsted US Offshore Wind.
According to Martin Neubert, CEO of offshore wind at Ørsted (formerly DONG Energy), the transaction will create “the No. 1 offshore wind platform in North America, merging the best of two worlds: Deepwater Wind’s long-standing expertise in originating, developing and permitting offshore wind projects in the U.S. and Ørsted’s unparalleled track record in engineering, constructing and operating large-scale offshore wind farms.”
Jeffrey Grybowski, CEO of Deepwater Wind, adds, “Ørsted is one of the world’s great clean energy companies and real pioneers in the offshore wind sector. We could not be more pleased with this combination, which will bring together two great teams to realize an enormous clean energy resource for coastal populations in the U.S.”
The new organization will be headed by Brostrøm, co-CEO; Grybowski, co-CEO; Deepwater Wind’s David Hang, president and chief financial officer; and Ørsted’s Claus Bøjle Møller, chief operating officer.
Providence, R.I.-based Deepwater, which is owned principally by an entity of the D.E. Shaw Group, built the U.S.’ first operational offshore wind project, the 30 MW Block Island Wind Farm. Furthermore, Deepwater’s development projects with revenue contracts awarded or under negotiation are as follows:
- Revolution Wind (600 MW): Located within Deepwater’s northern Massachusetts-Rhode Island lease area, Revolution Wind will interconnect into southern New England, where it will deliver power to Rhode Island (400 MW) and Connecticut (200 MW).
- Skipjack (120 MW): Located more than 19 miles from Ocean City, Md., Skipjack will interconnect into the Delmarva peninsula, where it will deliver power to the residents of Maryland.
- Southfork (90 MW): Located 35 miles east of Long Island, N.Y., Southfork will interconnect into eastern Long Island, where it will deliver power to households under a long-term power purchase agreement with the Long Island Power Authority.
On Ørsted’s side, its U.S. offshore wind portfolio comprises the following:
- Development rights for up to 2 GW at the Bay State Wind site, located off the coast of Massachusetts, in a joint venture with Eversource.
- Development rights for up to 3.5 GW at the Ocean Wind site off the coast of New Jersey.
- In Virginia, Ørsted will be constructing two 6 MW wind turbine positions for phase one of Dominion Energy’s Coastal Virginia Offshore Wind Project. Ørsted has exclusive rights with Dominion Energy to discuss the potential development of up to 2 GW of offshore wind capacity.
Bryan R. Martin, managing director of D. E. Shaw & Co., notes, “I am deeply grateful to the many people who have made Deepwater Wind so successful, and I’m excited to see what the largest and most innovative offshore wind company in the U.S. can do when it’s merged with the largest and most successful offshore wind company in the world. I’m truly proud that offshore wind’s global leader can now author the next chapter for Deepwater Wind. Together, they’ll continue to make history.”