Ørsted closes 25% stake sale in 1.1-GW Ocean Wind project to PSEG

Denmark’s Ørsted A/S (CPH:ORSTED) announced on Monday it has finalised the sale of a 25% stake in the 1,100-MW Ocean Wind project off New Jersey to US diversified energy company Public Service Enterprise Group Inc (NYSE:PEG).

The buyer, also known as PSEG, has been negotiating a deal with the Danish group for over a year. A definitive agreement for Ørsted’s divestment was reached last December.

Financial details about the transaction were not disclosed.

The Ocean Wind farm will be built 15 miles (24.1km) off the coast of southern New Jersey and will be capable of producing electricity for 500,000 local homes a year. GE Renewable Energy was selected to supply its 12-MW Haliade-X turbines for the huge project, while the agreement signed early in 2021 has an option for using the 13-MW variant of the machines. Once completed, this will be New Jersey’s first offshore wind farm.

In June 2019, Ørsted won the preferred bidder status in New Jersey’s first offshore wind solicitation with the Ocean Wind project. According to the New Jersey Board of Public Utilities (NJBPU), the company offered a first-year offshore wind renewable energy credit (OREC) price of USD 98.10 (EUR 82.32) per kWh.

The Danish energy major noted that the stake sale will not affect its financial and investment forecast for the current year.

(USD 1.0 = EUR 0.839)

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