Orsted to acquire PSEG stake in Ocean Wind 1 off New Jersey coast
Orsted will acquire Public Service Enterprise Group’s (PSEG) 25 percent equity stake in Ocean Wind 1, an 1,100 MW offshore wind project located 15 miles off the coast of southern New Jersey.
With the acquisition, Orsted will have 100 percent ownership of Ocean Wind 1. However, PSEG will support onshore infrastructure construction. Orsted is the U.S. leader in offshore wind, with 5 gigawatts in development.
“PSEG has been a valuable partner as we have advanced Ocean Wind 1 to this point and as we’ve successfully advanced our offshore wind vision in the United States. With a well-established presence in the U.S., we’re confident in our ability to drive the project forward with commercial operations beginning as planned,” David Hardy, group EVP and CEO Americas at Orsted, said.
The transaction between Orsted and PSEG is expected to close in the first half of 2023, pending the required closing conditions. The initial delivery of power from Ocean Wind 1 is scheduled for the end of 2024. Further, full commissioning is expected in 2025.
“As Ocean Wind 1 has evaluated the optimal way to move forward, it has become clear that it is best for the project for PSEG to step aside and allow for a better-positioned tax investor to join the project so that it can proceed with an optimized tax structure. While this was a difficult decision, it was driven by the best interests of the project and New Jersey’s offshore wind goals. PSEG will continue to actively support offshore wind in New Jersey and the region,” Lathrop Craig, PSEG’s senior vice president and chief commercial officer, said.
