Eversource (NYSE:ES) has signed agreement with Ørsted to sell it”™s the 50% interest in the uncontracted federal offshore wind lease area currently owned jointly by the two companies for $625 million.
Eversource announced last year it was reviewing its offshore wind energy portfolio and considering whether to sell related assets. In addition to the agreement with Ørsted to sell its uncontracted seabed and other interests, Eversource determined that it is in the best long-term interest of the company to pursue the sale of its existing 50 % interest in its three jointly owned contracted offshore wind projects (South Fork Wind, Revolution Wind and Sunrise Wind).
The agreement includes contracts and partnerships for key operational assets in the U.S. Northeast, including 187,000 acres of uncontracted seabed for offshore wind energy and has a potential capacity of up to 4 GW. As part of this agreement, Ørsted will acquire contracts and leases for strategic port facilities and other assets. Ørsted will take full ownership of partnerships with the Port of Providence, the Port of Davisville and Quonset Point (all in Rhode Island) and with Connecticut’s New London State Pier.
Ørsted will also take full ownership of the operations and maintenance hub in East Setauket, New York, and the charter agreement for the first American-built offshore wind service operation vessel, which is under construction at Edison Chouest”™s facility in Houma, Louisiana, and is more than 50% complete.
“We have had the pleasure of working alongside Ørsted for more than six years and have experienced first-hand their expertise and global leadership in the offshore wind sector,” said Joe Nolan, Eversource”™s president, chairman and CEO. “We continue to expect that offshore wind projects built in our partnership”™s lease area, including the three now under development, will play a critical role in decarbonizing the generation mix of Southern New England and New York.”
“I want to thank Eversource for our six-year partnership and for their expertise that has strategically advanced the onshore scopes of our three projects, which will deliver renewable energy to Rhode Island, Connecticut, and New York,” said David Hardy, executive vice president and CEO of Region Americas at Ørsted. “This acquisition further demonstrates our long-term commitment to building an American offshore wind energy industry and the value creation opportunities we see in the US market. In addition to taking full ownership of seabed that is familiar to our team after years of work in this area, we will also be the sole bidder in our New York 3 and Rhode Island 2 active offshore wind solicitations. The combination of the seabed and additional components in this agreement further establish a major hub in the Northeast for our activities and future opportunities.”
