Following the completion of the deal, Eversource Energy will continue to be contracted to lead the onshore construction of the Sunrise Wind offshore wind project under a separate construction management agreement
Eversource to divest 50% stake in Sunrise Wind offshore wind farm to Ørsted. (Credit: Maximilian Kaiser from Pixabay)
Eversource Energy has finalised definitive documents in line with its previously announced agreement to divest its 50% ownership stake in the 924MW Sunrise Wind offshore wind farm in the US to Danish energy company Ørsted.
Upon the completion of the deal, Eversource Energy will continue to be contracted to steer the onshore construction of the Sunrise Wind project under a separate construction management agreement.
In this connection, Eversource Energy will serve as a service provider to Ørsted. The former will not maintain any ongoing ownership stake in the offshore wind project nor will it bear any financial responsibilities associated with its costs.
Ørsted will become the 100% owner of the offshore wind farm. The financial terms of the deal were not disclosed.
Proposed to be built off the coast of New York, at least 48km east of Montauk Point, the Sunrise Wind offshore wind project is expected to power nearly 600,000 homes.
Eversource Energy CEO and president Joe Nolan said: “Sunrise Wind will bring considerable new investment and job opportunities to New York, especially for the local union slated to build the project’s onshore transmission system, while also helping to reduce carbon emissions and advance a clean energy future.
“We look forward to our continued role as a leading transmission expert to help enable the continued development of this important renewable resource for our region.”
Eversource Energy and Ørsted signed the initial agreements for the American offshore wind facility stake in January this year.
It was subject to the Sunrise Wind project’s successful award in the recent offshore wind renewable energy certificates request for proposals (ORECRFP23-1) issued by New York’s energy agency, New York State Energy Research and Development Authority (NYSERDA).
New York State selected the Sunrise Wind offshore wind project in February 2024 to move forward with contract negotiations with NYSERDA.
Subject to certain conditions, including execution of a contract with NYSERDA and customary regulatory approvals, the deal is anticipated to be completed later this year.
Goldman Sachs is serving as Eversource Energy’s financial adviser to assist with the transactions while Ropes & Gray is its legal counsel.