PSEG sells stake in Ocean Wind 1 project

PSEG announced Jan. 18 it agreed to sell its 25% equity stake in the Ocean Wind 1 offshore wind project to rsted.

The two companies have been partners on the project the first offshore wind farm in the Garden State, which is expected to be complete by the end of 2024.Wednesday’s announcement means rsted will now have 100% ownership of Ocean Wind 1, with PSEG continuing to provide support with onshore infrastructure construction.

“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,” said Lathrop Craig, PSEG’s senior vice president and chief commercial officer. “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 says that it remains committed to Gov. Phil Murphy’s clean energy policies and goals of deploying 30 gigawatts of offshore wind by 2030.

While this was a difficult decision, it was driven by the best interests of the project and New Jersey’s offshore wind goals.

Lathrop Craig, senior vice president and chief commercial officer, PSEG

The company says it will continue to help the state and nation realize the potential of offshore wind, providing support through transmission solutions, support for the New Jersey Wind Port, and PSEG’s clean energy investments.

“PSEG has been a valuable partner as we have advanced Ocean Wind 1 to this point and as we’ve successfully advanced our offshore wind vision in the United State,” said David Hardy, group executive vice president and CEO Americas at rsted. “With a well-established presence in the U.S., we’re confident in our ability to drive the project forward with commercial operations beginning as planned."

Pending the required closing conditions, the transaction between rsted and PSEG is expected to close in the first half of this year.

More background

New Jersey increases 2040 offshore wind targets by nearly 50%

Ocean Wind 1 takes major step in federal review process

Ocean Wind 1, Stockton University expand partnership

rsted, NABTU reach unprecedented labor agreement