In yet another move in the development of offshore wind in the northeastern U.S., New England’s largest energy company, Eversource, has entered into a 50-50 partnership with global industry leader Ørsted for key offshore wind assets in the region.
Eversource is paying approximately $225 million for a 50 percent interest in Ørsted’s Revolution Wind and South Fork Wind Farm projects, as well as the 257-square-mile tract off the coasts of Massachusetts and Rhode Island.
Ørsted acquired all three assets in November 2018 as part of its Deepwater Wind transaction.
The two companies are already in a 50-50 partnership in Bay State Wind, a separate 300-square-mile ocean tract adjacent to the Deepwater Wind area.
Together, Bay State Wind and the Deepwater Wind lease sites jointly owned by Eversource and Ørsted could eventually host at least 4,000 megawatts of offshore wind.
The two companies will jointly manage permitting requirements for upcoming projects and will honor all planned local investments and agreements entered prior to this partnership.
“We are excited to have Eversource join us as we embark on the creation of the strongest U.S. offshore wind platform,” said Thomas Brostrøm, CEO of Ørsted U.S. Offshore Wind and President of Ørsted North America “With their expansive knowledge of the energy market throughout the region, and by building on both company’s community outreach programs, we are on track to ensure that the Northeast will be the North American hub for offshore wind energy.”
“Offshore wind will provide a growing and critical source of zero-carbon energy in a region with very aggressive carbon reduction and renewable energy goals,” said Lee Olivier, Eversource Executive VP for Enterprise Energy Strategy and Business Development “This transaction solidifies our partnership as the strongest developer of offshore wind in the Northeast and is consistent with Eversource’s efforts to be a key catalyst for clean energy development in our region.”
In addition to the ocean tract, the partnership includes the following active offshore wind projects:
Revolution Wind (700 MW), located approximately 15 miles south of the Rhode Island coast, will deliver power to Rhode Island (400 MW) and Connecticut (300 MW). Revolution Wind is expected to be commissioned in 2023.
South Fork Wind Farm (approximately 130 MW), located 35 miles east of Long Island, will interconnect into eastern Long Island where it will deliver power to households under a long-term power purchase agreement with the Long Island Power Authority. This wind farm will be the largest source of renewable energy on Long Island, South Fork is expected to be commissioned by the end of 2022.