REG-Ørsted A/S Ørsted to acquire full ownership of Sunrise Wind subject to award in New York 4 offshore wind solicitation

Oersted A/SAnnouncement

24/01/2024 21:15

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   Ørsted A/S (Orsted)
   Ørsted to acquire full ownership of Sunrise Wind subject to award in New
   York 4 offshore wind solicitation

   24-Jan-2024 / 22:05 CET/CEST

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   24.1.2024 22:05:00 CET | Ørsted A/S | Inside information

   Ørsted has signed an agreement with Eversource to acquire Eversource’s 50
   % share of Sunrise Wind, a 924 MW offshore wind farm which would deliver
   power to New York. The acquisition is subject to the successful award of
   Sunrise Wind in the ongoing New York 4 solicitation for offshore wind
   capacity, signing of an OREC (Offshore Wind Renewable Energy Certificates)
   contract with New York’s energy agency, NYSERDA, entry into long-form
   acquisition agreements, receipt of construction and operations plan (COP),
   and relevant regulatory approvals.

   If Sunrise Wind is not successful in the solicitation, the existing OREC
   contract for Sunrise Wind will be cancelled per the state’s requirements,
   and Ørsted’s and Eversource’s 50/50 joint venture for Sunrise Wind will
   remain in place. In that scenario, the joint venture will evaluate its
   next steps. If the project is provisionally awarded, a new contract will
   be negotiated with NYSERDA under the updated terms of the current
   solicitation. 

   As the most mature offshore wind project in New York’s pipeline, Sunrise
   Wind is, if awarded in the New York 4 solicitation, expected to be
   completed in 2026, helping New York achieve its goal of reaching 70
   percent renewable energy by 2030. 

   The Sunrise Wind design has been reviewed and accepted by all relevant
   state agencies, and the project has secured all major supplier and project
   labor agreements to commence construction shortly after award. Final
   federal permits are expected this summer. 

   David Hardy, Executive Vice President and CEO of Region Americas at
   Ørsted, says: 

   “Following a thorough risk review of our US portfolio, we’re comfortable
   with taking full ownership of Sunrise Wind if the project is awarded in
   New York 4. This transaction is a value-accretive opportunity for Ørsted
   and the best path forward for the project.

   “Sunrise Wind will be our third offshore wind farm off the northeast
   coast, following South Fork and Revolution Wind, which are already under
   construction. The northeast is an increasing priority for Ørsted,
   including these projects, port assets, a trained workforce, and supply
   chain partners. We’re building a future offshore wind hub that is
   strategic for Sunrise Wind, if awarded, as well as for upcoming
   solicitations in the region, helping us to differentiate and de-risk
   potential future bids and projects.”   

   The information provided in this announcement does not impact Ørsted’s
   previous financial guidance for the financial year of 2023.

   For further information, please contact:

   Global 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. 8,700 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 X.

       Attachments

     •  4 Sunrise CA.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.:  299516
   EQS News ID:   1822467


    
   End of Announcement EQS News Service

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References

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