195;rsted A/S Ørsted Divests 25% Of Ocean Wind To Pseg
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
+45 99 55 60 17
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.