Orsted and Eversource have submitted a new proposal for Sunrise Wind in response to New York’s latest offshore wind solicitation.
The partners re-bid an updated project that, if selected, would fulfil its promise to deliver substantial economic benefits across New York and play a critical role in advancing the state’s climate goals.
Sunrise Wind previously secured an offtake agreement from New York. If the scheme is selected, the new deal will replace its existing contract. If the site is unsuccessful, the agreement will still be cancelled, under the terms of the solicitation.
Sunrise Wind would deliver up to 924MW of clean energy to New York.
The Sunrise Wind design has been reviewed and accepted by all relevant state agencies, and the project has secured all major supplier and labour agreements to commence work shortly after award, pending receipt of all final federal approvals. Final federal permits are expected this summer.
In addition, Orsted will acquire Eversource’s 50% share in the scheme if it is awarded a contract in New York’s fourth offshore wind solicitation.
In a successful re-bid, Orsted would become the sole owner of Sunrise Wind, while Eversource would remain contracted to lead the site’s onshore construction.
Should Sunrise Wind be successful in the re-bid, Orsted would pay 50% of the negotiated purchase price upon closing the sales transaction, with the remaining 50% paid when onshore construction is completed and certain other milestones are achieved.
If the project is not selected, the existing contract for Sunrise Wind would be cancelled, per the state’s requirement, and the 50/50 joint venture will remain in place. Orsted and Eversource would then assess their options in determining the best path forward for Sunrise Wind and its assets.
“Sunrise Wind is ready-to-build and ready to make more historic investments in New York’s offshore wind economy, creating jobs and delivering economic benefits immediately,” said group executive vice president and chief executive Americas at Orsted David Hardy.