Ørsted has signed an agreement with Eversource to acquire Eversource’s 50 percent share of Sunrise Wind, a 924-megawatt offshore wind project to be located about 35 miles east of Montauk.
Terms of the deal were not disclosed.
The acquisition is subject to the successful award of Sunrise Wind in New York State’s fourth solicitation for offshore wind capacity, the signing of an OREC (Offshore Wind Renewable Energy Certificates) contract with NYSERDA, finalization of acquisition agreements, receipt of construction and operations plan, and relevant regulatory approvals, according to a joint statement from Ørsted and Eversource.
If Sunrise Wind is not successful in the ongoing solicitation, the existing OREC contract for Sunrise Wind will be cancelled and Ørsted and Eversource’s 50/50 joint venture for Sunrise Wind will remain in place. If the project is provisionally awarded, a new contract will be negotiated with NYSERDA under the updated terms of the current solicitation, according to the statement.
Sunrise Wind aims to achieve roughly 10 percent of the state’s offshore wind goal of 9,000 megawatts by 2035, generating enough energy to power some 600,000 homes, while also bringing $700 million of investment to Suffolk County and creating 800 direct jobs and thousands of indirect jobs in the state, according to developers. It’s expected to be completed in 2026.
“Following a thorough risk review of our U.S. portfolio, we’re 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,” David Hardy, group executive vice president and CEO of Region Americas at Ørsted, said in the statement. “Sunrise Wind will be our third offshore wind farm off the Northeast coast, following South Fork and Revolution Wind, which are already under construction. The Northeast is an increasing priority for Ørsted, including these projects, port assets, a trained workforce, and supply chain partners. We’re 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.”
The Sunrise Wind design has been reviewed and accepted by all relevant state agencies and the project has secured all major supplier and project labor agreements to commence construction shortly after the solicitation award, the developers said. Final federal permits are expected this summer.
“We’re proud of the work we have already accomplished for Sunrise Wind and look forward to continuing our leadership position building onshore interconnection systems for offshore wind projects in the Northeast,” Joe Nolan, CEO and president of Eversource Energy, said in the statement.