Eversource weighing stake sale in US offshore wind JV with Ørsted

New England utility Eversource Energy (NYSE:ES) will consider the potential divestment of its 50% stake in a joint venture with Denmark’s Ørsted A/S (CPH:ORSTED) as part of a strategic review of its offshore wind investments.

The company said on Thursday that the review could see it sell either a portion or its entire shareholding in the offshore wind company jointly owned with the Danish clean energy major. Eversource will be exploring strategic alternatives so as to create shareholder value.

The Massachusetts-based utility expects to complete the review during the current year. Its president and CEO Joe Nolan explained that the move was undertaken “in light of the record-setting prices in the recent federal lease auction for tracts around the New York Bight and an evolving landscape [...]”.

Through their JV, Eversource and Ørsted own three contracted offshore wind projects in US seabed areas totalling 1,758 MW. Namely, these are the 130-MW South Fork project off Long Island in New York, the construction of which started earlier this year, as well as the 704-MW Revolution Wind off Rhode Island and the 924-MW Sunrise Wind off Long Island’s Montauk Point. The partnership also has secured the rights to up to 175,000 acres of an open lease area off Massachusetts, which are available for additional offshore wind deployment.

Provided that the potential sale comes into effect, Eversource will use the raised funds to support its investments in regulated energy and water delivery systems. The regional utility said it has identified more than USD 18 billion (EUR 17.1bn) of regulated investments targeted in the 2022-2026 period.

"Eversource remains committed to supporting offshore wind with advocacy, transmission investment solutions, and clean energy resource integration," CEO Nolan pointed out.

(USD 1.0 = EUR 0.948)

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