Ørsted deal creates largest US offshore wind company

Ørsted deal creates largest US offshore wind company

Business news |
By Nick Flaherty

The deal with the D.E. Shaw Group to acquire Rhode Island-based Deepwater Wind will create a company with the most comprehensive geographic coverage and the largest pipeline of development capacity.

Deepwater Wind has built a geographically diverse portfolio of projects along the US East Coast with a total potential capacity of approx. 3.3GW. This includes the 30MW Block Island project, the only operational offshore wind farm in the US. Three offshore wind development projects in Rhode Island, Connecticut, Maryland and New York totaling 810MW of capacity have long-term revenue contracts in place or pending finalization.

Ørsted’s current US offshore wind portfolio, partly formed from the recent acqusition of  has a total capacity of 5.5GW in a number of joint ventures. In Virginia, Ørsted will be constructing two 6MW wind turbine positions for phase one of Dominion Energy’s Coastal Virginia Offshore Wind Project. Ørsted has exclusive rights with Dominion Energy to discuss the potential development of up to 2GW of offshore wind capacity.

The combined company, Ørsted US Offshore Wind, will provide seven states on the US East Coast with over 10GW of offshore wind capacity by 2030.

“With this transaction we’re creating the number one offshore wind platform in North America, merging the best of two worlds: Deepwater Wind’s longstanding expertise in originating, developing and permitting offshore wind projects in the US, and Ørsted’s unparalleled track-record in engineering, constructing, and operating large-scale offshore wind farms,” said Martin Neubert, CEO of Offshore Wind at Ørsted. “This consolidates Ørsted’s position as the global market leader in offshore wind with a strong foothold across Europe, North America and Asia-Pacific.”

“Deepwater Wind has done a fantastic job as a first-mover in US offshore wind, and I look forward to joining and integrating the two US organizations,” said Thomas Brostrøm, CEO of Ørsted US Offshore Wind and President of Ørsted North America. “We have exciting times ahead of us delivering large-scale clean energy projects to households and businesses along the Eastern Seaboard. Ørsted will maintain a strong presence in Massachusetts and Rhode Island and will, of course honor the local commitments associated with Deepwater Wind’s projects along the East Coast.“

The transaction is subject to clearance by the US competition authorities and is expected to close by end of 2018.

Ørsted has installed 5.1GW offshore wind capacity in Europe and has a further 3.8GW under construction, aiming to have installed a total offshore wind capacity of 11-12GW worldwide by 2025.

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