December 21 (Renewables Now) - Baltimore-based US Wind Inc has concluded an agreement to sell to EDF Renewables North America an offshore wind lease area in New Jersey, which could become home to 2.5 GW of turbine capacity.
US Wind, part of Italy’s Toto Holding Group, will get USD 215 million (EUR 187.8m), plus a deferred variable payment, for the 183,353-acre-zone, located about 7 miles (11.3km) off the coast of Atlantic City on the US Outer Continental Shelf, it said on Thursday.
Separately, the subsidiary of French group EDF (EPA:EDF) said it has set up a 50/50 joint venture (JV) with a unit of oil and gas major Royal Dutch Shell Plc (AMS:RDSA) to co-develop the particular area. Called Atlantic Shores Offshore Wind LLC, the JV will carry out a site assessment of the area and start developing the project once a positive final investment decision is taken. The planned wind farm could begin operations by the mid-2020s.
"The sale of our New Jersey lease is consistent with our strategy to develop and optimise our assets while focusing on those projects that enhance our leadership position," said US Wind president Riccardo Toto.
US Wind secured the New Jersey lease in 2015. The company is also behind a 268-MW wind project off the coast of Ocean City, Maryland, planned for commissioning in 2022. With 32 turbines, the facility is expected to generate enough power for 76,000 local homes. US Wind estimates the project will bring an in-state investment of almost USD 1.5 billion.
Apart from the Maryland project, US Wind is also pursuing projects off South Carolina with a potential capacity of up to 6 GW.
(USD 1.0 = EUR 0.873)