Ørsted has signed an agreement to acquire Public Service Enterprise Group’s (PSEG) 25% equity stake in Ocean Wind 1, a 1.1GW offshore wind energy project.
The acquisition provides the Danish power company with 100% ownership of the project, which is located 15 miles off the coast of southern New Jersey.
The transaction is expected to close in H1 2023, with initial delivery of power scheduled for the end of 2024. Full commissioning is expected in 2025.
As Ocean Wind 1 continues its planning and development, Ørsted will ensure the project delivers affordable energy to New Jersey. Meanwhile, PSEG will support onshore infrastructure construction.
Ocean Wind 1 has committed to $695 million of in-state spending, creating hundreds of jobs during the construction phase of the project.
PSEG’s chief commercial officer Lathrop Craig said: “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 tax 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,” he added.
David Hardy, group EVP and CEO Americas at Ørsted, said: “With a well-established presence in the US, we’re confident in our ability to drive the project forward with commercial operations beginning as planned.”