It will not be with PSEG as a partner that Ørsted will implement the 1.1 GW offshore wind turbine project Ocean Wind 1. The parties have thus agreed that Ørsted will buy PSEG's 25 percent ownership interest in the project, which will be located approximately 24 km off the southern coast of New Jersey in the USA. With the purchase, Ørsted will become the sole owner of Ocean Wind 1.
However, PSEG will continue to contribute to the construction of the onshore infrastructure. However, to lift the ownership part, PSEG was no longer the best investor, the company states in a press release.
- In connection with the evaluation of how best to ensure progress in the project, it became clear that it would be best if PSEG stepped aside and made room for a better positioned investor, so that the project could continue with an optimized tax structure. Although it was a difficult decision, it is driven by what is best for the project and for New Jersey's goals for offshore wind. PSEG will continue to actively support the development of offshore wind in New Jersey and the region, says Lathrop Craig, PSEG's commercial director.
First power from Ocean Wind 1 is expected before the end of 2024, and the offshore wind farm is expected to be fully operational in 2025. This will make it the first large offshore wind farm for Ørsted in the US. However, the final investment decision has not yet been made, but it is expected to be made soon.
- PSEG has been a valuable partner throughout the process of developing Ocean Wind 1 and expanding our vision for offshore wind in the US. With a well-developed presence in the US, we are confident that we are well equipped to drive the project forward and enter commercial operation as planned, says David Hardy, Executive Vice President and Regional Director for the Americas at Ørsted.
The price for PSEG's 25 percent ownership interest is not disclosed by the parties. The transaction is expected to close in the first half of 2023, subject to regulatory approval as expected. .
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