Ørsted has submitted a bid to the New Jersey Board of Public Utilities (NJBPU) to build its Ocean Wind offshore project.
The Ocean Wind project is proposed 15 miles off the coast of Atlantic City. Should Ocean Wind receive approval from the NJBPU, Ørsted will work with Public Service Enterprise Group’s (PSEG) non-utility affiliates, which would provide energy management services and potential lease of land for use in project development. PSEG will also have the option to become an equity investor in the project.
In May 2016, Ørsted (then DONG Energy) acquired a 160,480-acre offshore wind lease area from RES Americas Developments Inc. The lease area, which the company then named Ocean Wind, has the potential to accommodate more than 1 GW of offshore wind.
As presented in its new proposal to the NJBPU, the Ocean Wind project would make significant investments in New Jersey’s offshore wind fabrication, construction and maintenance infrastructure – all of which would create long-term job potential and reduce the cost of future offshore wind farms in the region. It would also establish the “Ocean Wind Pro-NJ” Grantor Trust, supporting minority business enterprises, women business enterprises and/or small businesses entering the offshore wind industry.
Ralph Izzo, PSEG’s chairman, president and CEO, notes, “New Jersey is fortunate to have excellent offshore wind resources. If approved, Ocean Wind would provide substantial environmental benefits, as well as generate significant economic activity in the state.”
In January, Murphy signed Executive Order #8, directing the NJBPU to fully implement the Offshore Wind Economic Development Act and begin the process of moving the state toward a goal of 3.5 GW of offshore wind generation by 2030. The NJBPU recently voted to adopt a proposed rule establishing the funding mechanism – Offshore Wind Renewable Energy Certificates (ORECs) – for the state’s offshore wind program.
Thomas Brostrøm, CEO of Ørsted US Offshore Wind and president of Ørsted North America, says the company’s bid represents “an important milestone in the state’s desire to build out its renewable energy portfolio.” Ørsted recently acquired Deepwater Wind for $510 million, creating Ørsted US Offshore Wind. Ørsted also announced a new office in Atlantic City earlier this year.