In a joint venture with the American energy company Eversource, Ørsted was behind the 924 MW offshore wind project Sunrise Wind.
Now, however, the Danish company seems to be going it alone with the project. In each case, Ørsted states in a statement that the companies have reached an agreement that Ørsted will take over Eversource's 50 percent ownership stake.
The purchase is, however, conditional on Sunrise Wind winning New York's ongoing fourth offshore wind auction, signing an OREC contract (Offshore Wind Renewable Energy Certificate) with New York's energy authority, Nyserda, concluding the complete transaction agreements, approving the construction and operating plan, and obtaining relevant regulatory approvals.
- After a thorough review of risks in our American portfolio, we are comfortable taking over full ownership of Sunrise Wind if the project wins New York's fourth offshore wind tender. This is a value-adding opportunity for Ørsted and the best way forward for the project, says David Hardy, Ørsted's regional director for the Americas.
Ørsted and Eversource have previously tried to negotiate a higher settlement price for Sunrise Wind. However, this was rejected by Nyserda. If Sunrise Wind is not among the winners of the auction, the existing OREC contract for Sunrise Wind will be cancelled in accordance with the requirements of the US state, and Ørsted and Eversource's 50/50 joint venture for Sunrise Wind will then continue unchanged.
In that case, the joint venture will consider the further course of action. If the project is provisionally declared the winner of the auction, a new contract will be negotiated with Nyserda in accordance with the updated terms of the current tender.
- We are in the process of building a future hub for offshore wind, which will be strategic for Sunrise Wind, if the project is among the winners, and for future tenders in the region, and it helps us differentiate ourselves and reduce the risks of future tenders and projects, says David Hardy.
If the Sunrise Wind project wins in New York's fourth offshore wind tender, it is scheduled to be completed in 2026. This will help New York achieve its goal of 70 percent renewable energy by 2030.
Ørsted has previously written down the value of its projects in the US by more than DKK 20 billion.
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