Ørsted has entered into an agreement to sell a 25% ownership 
interest in its 1,100MW Ocean Wind offshore wind project to New Jersey's 
Public Service Enterprise Group (PSEG). PSEG's contribution will include 
both a conventional and tax equity investment in the project. The 
partners did not disclose the value of the transaction. 
   In June 2019, 
Ocean Wind was selected by The New Jersey Board of Public Utilities 
(NJBPU) to build New Jersey's first large-scale offshore wind farm. 
   The Ocean Wind project could provide first power in late 2024, subject 
to federal permitting timelines, other development and construction 
activities, and final investment decisions by Ørsted and PSEG. 
Completion of the acquisition is anticipated to occur in the first half 
of 2021, subject to approval by the New Jersey Board of Public Utilities 
and other customary closing conditions. 
   In addition to the Ocean Wind partnership, Ørsted and PSEG are 
joint venture partners on the Garden State Offshore Energy lease area. 
   Henrik Poulsen, CEO and President of Ørsted, says: 
   "I'm delighted to extend our partnership with PSEG and welcome them on 
Ocean Wind, which will contribute significantly to New Jersey's target 
of achieving 100% renewable power by 2050. In addition to clean energy, 
Ocean Wind will bring jobs and industrial development to the Garden 
State during development and construction and throughout its operational 
lifetime. I look forward to delivering this flagship renewable energy 
project to New Jersey in close cooperation with PSEG." 
   Ralph Izzo, Chairman, President and CEO of PSEG, says: 
   "We're pleased to expand our partnership with Ørsted, a global 
leader in the development of offshore wind. As New Jersey's first 
offshore wind project, Ocean Wind will lead the way for a productive 
first step into this forward-leaning industry, bringing with it new 
skills, jobs, and carbon-free energy. Further, this investment in 
offshore wind energy is well-aligned with our company's long-term clean 
energy strategy. We're excited to continue our close relationship with 
Ørsted, combining each organisation's expertise to achieve powerful 
benefits for energy consumers and the state, and we look forward to 
future opportunities throughout New Jersey and the Mid-Atlantic." 
   PSEG has extensive power market knowledge and experience in executing 
complex energy infrastructure projects in the state and region. 
Ørsted is the world's leading offshore wind developer and will be 
responsible for developing, constructing and operating Ocean Wind's 
offshore power generation and transmission assets. 
   About Ocean Wind 
   Located 24 km (15 miles) off the coast of Atlantic City, Ocean Wind will 
be New Jersey's first large-scale offshore wind farm, and the 12MW GE 
Haliade-X turbines will generate enough clean energy to power more than 
half a million New Jersey homes. Ørsted plans to establish an 
operations and maintenance (O&M) base in Atlantic City that will provide 
permanent, high-skilled jobs during the projects' 30+ years operational 
   Ocean Wind will receive a first year Offshore Wind Renewable Energy 
Certificate (OREC) price of USD98.10 per MWh generated, with a 2% 
increase per year during the 20-year term of the OREC. 
   The information provided in this announcement does not change 
Ørsted's previous financial guidance for the financial year of 2020 
or the announced expected investment level for 2020. 
   For further information please contact: 
   Ørsted Investor Relations 
   Allan Bødskov Andersen 
   +45 99 55 79 96 
   Ørsted Group Media Relations 
   Tom Christiansen 
   +45 99 55 60 17 
   About Ørsted 
   Ørsted's vision is to create a world that runs entirely on green 
energy. Ørsted develops, constructs, and operates offshore and 
onshore wind farms, solar farms, energy storage facilities, and 
bioenergy plants, and provides energy products to its customers. 
Ørsted ranks #1 in Corporate Knights' 2020 index of the Global 100 
most sustainable corporations in the world and is recognised on the CDP 
Climate Change A List as a global leader on climate action. 
Headquartered in Denmark, Ørsted employs 6,120 people. 
Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2019, 
the company generated revenue of DKK 67.8 billion (EUR 9.1 billion). For 
more information on Ørsted, visit orsted.com or follow us on 
Facebook, LinkedIn, Instagram and Twitter. 
   -- OCW divestment 

(END) Dow Jones Newswires

December 04, 2020 08:16 ET (13:16 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.