Ørsted has entered into an agreement on Dec. 4 to sell a 25% ownership interest in its 1,100 MW 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.

“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,” Henrik Poulsen, CEO and President of Ørsted, said. “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.”  

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.