Danish energy giant Ørsted has agreed to acquire a 50% stake in the Sunrise Wind offshore project from US utility Eversource.
Sunrise Wind is a 924MW offshore wind farm intended to supply power to New York.
The deal depends on Sunrise Wind winning the current New York 4 offshore wind capacity solicitation.
Requirements for the acquisition also include long-form acquisition agreements from Sunrise, Ørsted receiving a construction and operations plan, obtaining the necessary regulatory clearances and an OREC (Offshore Wind Renewable Energy Certificates) contract with NYSERDA, New York State's energy agency.
If these terms are not met, the existing OREC contract will be nullified under state regulations. In that event, the current joint venture (JV) between Ørsted and Eversource would persist and the JV would consider potential future actions.
If the project does receive a provisional award, negotiations for a new contract with NYSERDA will commence.
The Sunrise Wind project is set to be operational by 2026, contributing significantly to New York's renewable energy target of 70% by 2030.
The project's design has been approved by state agencies.
Key supplier and labour agreements are in place to begin construction as soon as the award is confirmed. Final federal permits are due to be granted in the summer of 2024.
The Sunrise Wind farm will be situated 30 miles (48km) east of Montauk Point, Suffolk County, New York, and will have minimal visual impact on residents.
Ørsted Americas region CEO and executive vice-president David Hardy stated: “Following a thorough risk review of our US portfolio, we are comfortable with taking full ownership of Sunrise Wind if the project is awarded in New York 4. This transaction is a value-accretive opportunity for Ørsted and the best path forward for the project.
“Sunrise Wind will be our third offshore wind farm off the north-east coast, following South Fork and Revolution Wind, which are already under construction. The north-east is an increasing priority for Ørsted, including these projects, port assets, a trained workforce and supply chain partners.
“We are building a future offshore wind hub that is strategic for Sunrise Wind, if awarded, as well as for upcoming solicitations in the region, helping us to differentiate and de-risk potential future bids and projects.”
Ørsted has partnered with Eversource since December 2016, focusing on offshore wind development in the north-eastern US.
The collaboration has expanded to encompass 4GW of offshore wind capacity.
