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Ørsted closes USD-510m Deepwater Wind takeover

A picture from Cathie Associates visit to the US’ first commercial offshore wind farm; Block Island.

November 8 (Renewables Now) - Denmark’s Ørsted A/S (CPH:ORSTED) has wrapped up the USD-510-million (EUR 447m) acquisition of Deepwater Wind, the company behind the first offshore wind farm in the US.

Ørsted said in a statement that all closing conditions have been met, including review of the transaction by US authorities. The Danish offshore wind major bought Rhode Island-based Deepwater Wind from the DE Shaw Group.

The acquisition results in the formation of a new US company called Ørsted US Offshore Wind, which has a development pipeline exceeding 8 GW, Ørsted said. This new firm will be able to supply electricity to every coastal state in the east coast corridor between Massachusetts and Virginia, where a total of seven states have already committed to build more than 10 GW of offshore wind capacity by 2030.

Deepwater Wind is the company that built the first and currently the only operating offshore wind park in the US, namely the 30-MW Block Island facility. The company also has three projects with long-term revenue contracts in place or pending finalisation in Rhode Island, Connecticut, Maryland and New York, totalling 810 MW. In addition, it has around 2.5 GW of potential projects in offshore wind lease areas in Massachusetts and Delaware.

Ørsted US Offshore Wind will be led by CEO Thomas Brostrøm of Ørsted, as well as co-CEO Jeffrey Grybowski and president and chief commercial officer (CCO) David Hang of Deepwater Wind. At the same time, Claus Bøjle Møller of Ørsted will act as chief operating officer (COO). The firm will have dual headquarters located in Boston, Massachusetts and Providence, Rhode Island.

“Our teams will now begin to merge together to advance our existing projects and to prepare for our next round of projects for the East Coast. We have very big plans for the US,” said Jeffrey Grybowski, co-CEO of Ørsted US Offshore Wind.

(USD 1.0 = EUR 0.876)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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