January 19 (Renewables Now) - Denmark’s Ørsted A/S (CPH:ORSTED) will buy back the 25% equity stake in the 1.1-GW Ocean Wind 1 project off New Jersey’s southern coast from Public Service Enterprise Group Inc (NYSE:PEG) nearly two years after closing the stake sale to the US energy holding.
Once the latest transaction wraps up, Ørsted will go back to owning 100% of the offshore wind project, while PSEG will support onshore infrastructure construction, the companies said on Wednesday.
"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 optimized 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," PSEG's Senior Vice President and Chief Commercial Officer Lathrop Craig said in a statement.
“PSEG has been a valuable partner as we’ve advanced Ocean Wind 1 to this point, and as we’ve successfully advanced our offshore wind vision in the US. 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,” added David Hardy, Executive Vice President and CEO of Region Americas at Ørsted.
The deal is expected to close in the first half of 2023.
The Ocean Wind 1 wind farm will be located about 15 miles (24.1 km) off the coast of New Jersey. Once its GE Haliade-X turbines are connected, it will be the first offshore wind farm for the US state. Ørsted expects the first power to come out at the end of 2024. Full commissioning is expected in 2025.