Subject to signing joint venture agreement, advanced due diligence and potential regulatory approvals, PSEG will acquire stake in 1.1GW offshore wind project
New Jersey-based utility Public Service Enterprise Group (PSEG) has entered into negotiations with Danish energy giant Ørsted to acquire stake in the latter’s 1.1GW Ocean Wind offshore wind farm in the US.
Located 24km off the coast of Atlantic City, the offshore wind farm will have the capacity to generate clean electricity required to power more than half a million New Jersey homes.
PSEG, subject to negotiations toward a joint venture agreement, advanced due diligence and potential regulatory approvals, will acquire a 25% stake in the Ocean Wind project.
Ørsted US Offshore Wind CEO and Ørsted North America president Thomas Brostrøm said: “Ørsted’s experience in the offshore wind industry has taught us the importance of strong partnerships.
“Given PSEG’s track record for success and history providing energy solutions for communities across the Mid-Atlantic region, we are thrilled at the prospect of having them join the Ocean Wind project.”
Ocean Wind offshore wind farm to enter service in 2024
The wind farm is planned to be commissioned in 2024, subject to permitting and final investment decision.
During the three-year development and construction phase, the project is expected to create more than 3,000 direct jobs annually.
PSEG Power president and chief operating officer Ralph LaRossa said: “We are pleased about the opportunity to explore a partnership with Ørsted, a world leader in offshore wind development, and help New Jersey achieve its goal of carbon free generation by 2050.”
In June 2019, the New Jersey Board of Public Utilities (NJBPU) selected Ørsted as a preferred bidder for Ocean Wind.
The Danish company earlier said it plans to establish an operations and maintenance (O&M) base in Atlantic City that will provide permanent, high-skilled jobs during the more than 25 years lifespan of the project.
Additionally, Ørsted plans to take the support of PSEG’s non-utility affiliates in the form of energy management services and potential lease of land for use during the project development and execution phases.