Orsted is to sell a 25% interest in its 1100MW Ocean Wind offshore wind farm to New Jersey’s Public Service Enterprise Group (PSEG) for an undisclosed price.
PSEG’s contribution will include both a conventional and tax equity investment in the project.
Ocean Wind could provide first power in late 2024, subject to federal permitting timelines, other development and construction activities, and final investment decisions by Orsted and PSEG.
Completion of the acquisition is anticipated to occur in the first half of 2021, subject to approval by the New Jersey Board of Public Utilities and other customary closing conditions.
In addition to the Ocean Wind partnership, Orsted and PSEG are joint venture partners on the Garden State offshore energy lease area.
Orsted chief executive Henrik Poulsen said: “I’m delighted to extend our partnership with PSEG and welcome them on Ocean Wind, which will contribute significantly to New Jersey’s target of achieving 100% renewable power by 2050.
“In addition to clean energy, Ocean Wind will bring jobs and industrial development to the Garden State during development and construction and throughout its operational lifetime.
“I look forward to delivering this flagship renewable energy project to New Jersey in close cooperation with PSEG.”
PSEG chairman, president and chief executive Ralph Izzo said: “We’re pleased to expand our partnership with Orsted, a global leader in the development of offshore wind.
“As New Jersey’s first offshore wind project, Ocean Wind will lead the way for a productive first step into this forward-leaning industry, bringing with it new skills, jobs, and carbon-free energy. Further, this investment in offshore wind energy is well-aligned with our company’s long-term clean energy strategy.
“We’re excited to continue our close relationship with Orsted, combining each organisation’s expertise to achieve powerful benefits for energy consumers and the state, and we look forward to future opportunities throughout New Jersey and the Mid-Atlantic.”
Ocean Wind is located 24km off the coast of Atlantic City and is in line to feature 12MW GE Haliade-X turbines.
Orsted said the information provided in this announcement does not change its previous financial guidance for the 2020 financial year or the announced expected investment level for 2020.