Danish offshore wind company Ørsted has closed a deal to sell 25 per cent in one of the largest offshore wind project in the US, the 1.1 GW Ocean Wind project, to New Jersey’s Public Service Enterprise Group (PSEG) for an undisclosed amount. The project, which in mid-2019 was selected by the New Jersey Board of Public Utilities to become the US State’s first large-scale offshore wind farm, could provide first power in late 2024, subject to federal permitting timelines, other development and construction activities, and final investment decisions by Ørsted and PSEG.

“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,” Ørsted chief executive Henrik Poulsen said. Ørsted said PSGE’s contribution will include both a conventional and tax equity investment in the project. Ørsted and PSEG are already joint venture partners in the Garden State Offshore Energy lease area.

Completion of the acquisition is expected in the first half of 2021, subject to approval by the New Jersey Board of Public Utilities and other customary closing conditions. “We’re pleased to expand our partnership with Ørsted, a global leader in the development of offshore wind,” said Ralph Izzo, chief executive, PSEG. “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.” Izzo added his company is looking forward to future opportunities throughout New Jersey and the Mid-Atlantic.

Ocean Wind is located at 24 kms off the coast of Atlantic City, and will use GE’s 12MW Haliade-X turbines. The project will reportedly receive Offshore Wind Renewable Energy Certificates at a price of $98.10 per megawatt hour during the first year of operation, with a 2 per cent increase per year during the 20-year term of the OREC.