Public Service Enterprise Group has agreed to sell Ørsted its 25% equity stake in the Ocean Wind 1 offshore wind energy project, providing Ørsted with 100% ownership of the project, according to a Wednesday announcement.
Ørsted, America’s largest offshore wind energy company, will proceed with development of the project, with PSEG supporting onshore infrastructure construction.
Ocean Wind 1 has committed to $695 million of in-state spending, creating hundreds of jobs during the construction phase of the project, in addition to building an operations and maintenance facility in Atlantic City.
Ørsted has invested more than $100 million to help establish the first American monopile facility at the Port of Paulsboro in New Jersey, committed over $20 million to the Pro-NJ Grantor Trust, established a North American Digital Operations headquarters in Newark and partnered with the New Jersey Institute of Technology on a $1.5 million, 10-year scholarship program.
The transaction between Ørsted 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, and 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,” PSEG Senior Vice President and Chief Commercial Officer Lathrop Craig said.
PSEG remains committed to Gov. Phil Murphy’s clean energy policies and President Joe Biden’s goal of deploying 30 gigawatts of offshore wind by 2030. The company will continue to help the state and nation realize offshore wind’s tremendous potential through transmission solutions, support for the New Jersey Wind Port and Public Service Electric & Gas’ clean energy investments.
As Ocean Wind 1 continues its planning and development, Ørsted will ensure the project delivers affordable energy to New Jersey, while providing economic opportunity across the state and region.
“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 executive vice president and CEO Americas at Ørsted, said.