Orsted has signed an agreement to acquire Public Service Enterprise Group’s (PSEG) 25% equity stake in the 1100MW Ocean Wind 1.
The acquisition provides Orsted with 100% ownership of the offshore wind development located around 24km off the coast of southern New Jersey in the US.
The transaction between Orsted 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.
As Ocean Wind 1 continues its planning and development, Orsted will ensure the project delivers affordable energy to New Jersey, PSEG will support onshore infrastructure construction.
Orsted executive vice president and chief executive for the Americas David Hardy said: “PSEG has been a valuable partner as we’ve advanced Ocean Wind 1 to this point, and as we have successfully advanced our offshore wind vision in the US.
“With a well-established presence in the US, we are confident in our ability to drive the project forward with commercial operations beginning as planned.”
Orsted has 30 years of experience in offshore wind energy, including operating the first US offshore wind farm Block Island, off the coast of Rhode Island.
PSEG senior vice president and chief commercial officer Lathrop Craig added: “As Ocean Wind 1 has evaluated the optimal way to move forward, it has become clear that it is 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 optimised tax structure.
“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.”