Danish renewable energy giant Ørsted has entered into an agreement to sell a 25% ownership interest in its Ocean Wind offshore wind project to New Jersey’s Public Service Enterprise Group (PSEG).
PSEG will fund the acquisition via both a conventional and tax equity investment in the project. The value of the transaction was not disclosed.
Ocean Wind was selected by The New Jersey Board of Public Utilities (NJBPU) in 2019 to build New Jersey’s first large-scale offshore wind farm. Located 24km off the coast of Atlantic City, Ocean Wind will generate enough energy to power more than 500,000 New Jersey homes.
Ørsted and PSEG are also joint venture partners on the Garden State Offshore Energy lease area.
Henrik Poulsen, CEO and president of Ørsted, commented: “I’m delighted to extend our partnership with PSEG and welcome them on Ocean Wind, which will contribute significantly to New Jersey’s target of achieving 100% renewable power by 2050. In addition to clean energy, Ocean Wind will bring jobs and industrial development to the Garden State during development and construction and throughout its operational lifetime. I look forward to delivering this flagship renewable energy project to New Jersey in close cooperation with PSEG.”
Ralph Izzo, Chairman, president and CEO of PSEG, said: “We’re pleased to expand our partnership with Ørsted, a global leader in the development of offshore wind. As New Jersey’s first offshore wind project, Ocean Wind will lead the way for a productive first step into this forward-leaning industry, bringing with it new skills, jobs, and carbon-free energy. Further, this investment in offshore wind energy is well-aligned with our company’s long-term clean energy strategy. We’re excited to continue our close relationship with Ørsted, combining each organisation’s expertise to achieve powerful benefits for energy consumers and the state, and we look forward to future opportunities throughout New Jersey and the Mid-Atlantic.”
The Ocean Wind project is scheduled to provide first power in late 2024.