Avangrid, CIP to split Vineyard Wind LLC's offshore wind rights in US

US sustainable energy company Avangrid Inc (NYSE:AGR) and Denmark’s Copenhagen Infrastructure Partners (CIP) have agreed to restructure the ownership of some of the projects and proposals that their 50/50 offshore wind joint venture (JV) Vineyard Wind LLC is developing in the Atlantic Ocean.

The agreement was announced Tuesday by Spanish utility Iberdrola SA (BME:IBE), the majority owner of Avangrid Inc.

According to Iberdrola, Avangrid’s wholly-owned unit Avangrid Renewables LLC struck an arrangement with three of CIP’s subsidiaries for each half of the Vineyard Wind JV to take a 100% stake in two offshore wind sites on the US east coast.

The JV’s flagship project, the 800-MW Vineyard Wind 1 off Massachusetts, will remain 50/50 in the hands of Avangrid and CIP under the agreement.

However, Avangrid Renewables is to become a 100% owner of the rights over lease area OCS-A 0534, which includes the 804-MW Park City Wind project and the Commonwealth Wind project of up to 1,200-MW.

In return, CIP will fully own the rights over lease area OCS-A 0522, which has the potential to deliver around 2,500 MW of offshore wind power to New England and New York, Iberdrola said.

At deal’s close, which is subject to a number of conditions, Avangrid Renewables will make a net payment of around USD 167.5 million (EUR 142.8m) in the aggregate to CIP’s subsidiaries CI-II Park Holding LLC and CI III Park Holding LLC.

The restructuring agreement comes just days after Avangrid and CIP achieved a USD-2.3-billion financial close for the Vineyard Wind 1 project. Their JV also recently submitted a bid for the Commonwealth Wind scheme in response to the Request for Proposals (RfP) for offshore wind in Massachusetts.

The 804-MW Park City Wind proposal was selected as the winner in Connecticut’s offshore wind solicitation in late 2019.

(USD 1.0 = EUR 0.853)

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