Danish energy company, Orsted, has agreed to buy 100% equity interest of US-based D.E. Shaw Group’s offshore wind developer, Deepwater Wind, for US$510 million.
Rhode Island-based Deepwater Wind is responsible forthe 30 MW Block Island facility– the only operational offshore wind farm in the US.
According to Orsted, Deepwater Wind’s portfolio had a total potential capacity of approximately 3.3GW, including offshore wind development projects in Rhode Island, Connecticut, Maryland, and New York. Orsted’s offshore wind portfolio in the US amounts to around 5.5GW.
Martin Neubert, Orsted’s CEO of offshore winds stated that the deal would create the “number one offshore wind platform in North America.”
“The transaction will merge Deepwater Wind’s longstanding expertise in originating, developing and permitting offshore wind projects in the US, and Orsted’s unparalleled track-record in engineering, constructing, and operating large-scale offshore wind farms,” continued Neubert.
While offshore wind is still relatively new to the US, it is well established in other parts of the world. Europe is home to several huge offshore wind projects, including the Walney Extension Offshore Wind Farm –a facility with the total capacity of 659MW and is capable of powering nearly 600,000 homes in the UK.
The merger is expected to complete by the end of 2018, and the new organisation will be called Orsted US Offshore Wind.