REG-Ørsted A/S Ørsted to acquire Eversource share of uncontracted offshore wind seabed

Oersted A/SAnnouncement

25/05/2023 22:00

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   Ørsted A/S (Orsted)
   Ørsted to acquire Eversource share of uncontracted offshore wind seabed

   25-May-2023 / 22:46 CET/CEST

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   25.5.2023 22:46:38 CEST | Ørsted A/S | Investor News

   Ørsted to fully own seabed with up to 4 GW of capacity and fully own
   strategic O&M contracts. Acquisition further strengthens Ørsted’s offshore
   wind energy position in the US Northeast.

   Ørsted has signed an agreement to acquire Eversource Energy’s 50 %
   interest in the uncontracted federal offshore wind lease area currently
   owned jointly by the two companies. In addition to the seabed, which is in
   early-stage development, the agreement also includes contracts and
   partnerships for key operational assets in the US Northeast. 
    
   The USD 625 million agreement further strengthens Ørsted’s leading
   position in US offshore wind energy and demonstrates the company’s
   commitment to building an American offshore wind industry, including a
   supply chain that creates jobs across the United States and drives
   innovation for the global market. 
    
   The lease area, identified as Lease Area OCS-A 500 (Lease 500), contains
   approximately 187,000 acres of uncontracted seabed for offshore wind
   energy and has a potential capacity of up to 4 GW. As part of this
   agreement, Ørsted will acquire contracts and leases for strategic port
   facilities and other assets. Ørsted will take full ownership of
   partnerships with the Port of Providence, the Port of Davisville, and
   Quonset Point, all in Rhode Island, and with Connecticut's New London
   State Pier. Ørsted will also take full ownership of the operations and
   maintenance hub in East Setauket, New York, and the charter agreement for
   the first American-built offshore wind service operation vessel, which is
   under construction at Edison Chouest’s facility in Houma, Louisiana, and
   is more than 50 % complete. 
    
   “I want to thank Eversource for our six-year partnership and for their
   expertise that has strategically advanced the onshore scopes of our three
   projects, which will deliver renewable energy to Rhode Island,
   Connecticut, and New York,” said David Hardy, Executive Vice President and
   CEO of Region Americas at Ørsted. “This acquisition further demonstrates
   our long-term commitment to building an American offshore wind energy
   industry and the value creation opportunities we see in the US market. In
   addition to taking full ownership of seabed that is familiar to our team
   after years of work in this area, we will also be the sole bidder in our
   New York 3 and Rhode Island 2 active offshore wind solicitations. The
   combination of the seabed and additional components in this agreement
   further establish a major hub in the Northeast for our activities and
   future opportunities.” 
    
   Lease 500 is strategic to Ørsted’s US offshore wind portfolio. In addition
   to its proximity to existing Ørsted projects, which creates construction
   and operational efficiencies, the site also offers shallow water depth and
   favourable wind speeds compared to other sites in the US and globally.
   Located approximately 40 km off the coast of Southern New England, the
   site can also serve four markets, including Massachusetts, Rhode Island,
   Connecticut, and New York. 
    
   “We have had the pleasure of working alongside Ørsted for more than six
   years and have experienced first-hand their expertise and global
   leadership in the offshore wind sector. We continue to expect that
   offshore wind projects built in our partnership’s lease area, including
   the three now under development, will play a critical role in
   decarbonizing the generation mix of Southern New England and New York,”
   said Joe Nolan, Eversource’s president, chief executive officer, and
   chairman. 
    
   Eversource announced last year it was reviewing its offshore wind energy
   portfolio and considering whether to sell related assets. In addition to
   the agreement with Ørsted to sell its uncontracted seabed and other
   interests, Eversource determined that it is in the best long-term interest
   of the company to pursue the sale of its existing 50 % interest in its
   three jointly owned contracted offshore wind projects (South Fork Wind,
   Revolution Wind and Sunrise Wind).  
    
   As part of the agreement with Ørsted, Eversource will provide tax equity
   for the South Fork Wind project. Securing the tax equity arrangement is a
   critical milestone for South Fork Wind ahead of its plan to begin
   operations and deliver renewable energy later this year. Eversource will
   continue to support onshore scopes of all three projects through
   construction, ensuring the long-term continuity and success of the
   portfolio.  
    
   The agreement is subject to customary closing conditions and regulatory
   review and is expected to close in the third quarter of 2023. 

   For further information, please contact:

   Media Relations
   Tom Christiansen
   +45 99 55 60 17
    1 tomlc@orsted.com 

   Investor Relations
   Rasmus Keglberg Hærvig
   +45 99 55 90 95
    2 IR@orsted.com 

   About Ørsted
   The Ørsted vision is a world that runs entirely on green energy. Ørsted
   develops, constructs, and operates offshore and onshore wind farms, solar
   farms, energy storage facilities, renewable hydrogen and green fuels
   facilities, and bioenergy plants. Ørsted is recognised on the CDP Climate
   Change A List as a global leader on climate action and was the first
   energy company in the world to have its science-based net-zero emissions
   target validated by the Science Based Targets initiative (SBTi).
   Headquartered in Denmark, Ørsted employs approx. 8,000 people. Ørsted's
   shares are listed on Nasdaq Copenhagen (Orsted). In 2022, the group's
   revenue was DKK 132.3 billion (EUR 17.8 billion). Visit  3 orsted.com or
   follow us on Facebook, LinkedIn, Instagram, and Twitter.

       Attachments

     •  4 Ørsted to acquire share of seabed lease.pdf

   News Source: Ritzau

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          DK0060094928
   Category Code: MSCM
   TIDM:          Orsted
   Sequence No.:  246462
   EQS News ID:   1642437


    
   End of Announcement EQS News Service

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References

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