Ørsted Buys PSEG Stake in Offshore Wind Project, Announces Major Texas Solar Farm

Danish power developer Ørsted continues to broaden its presence within the US market, with the corporate on January 18 saying that it has signed an settlement to accumulate a 25% stake in Public Service Enterprise Group (PSEG). of the 1.1-GW Ocean Wind 1 mission about 15 miles off the coast of New Jersey. The transfer will give Ørsted full possession of the mission as soon as the transaction closes, which is anticipated within the subsequent few months.

Wednesday’s information comes simply days after the Copenhagen-headquartered group mentioned it might construct the 471-MW Mockingbird Photo voltaic Middle in Texas. That mission, which spans about 4,900 hectares, is the most important photo voltaic mission up to now in Ørsted’s portfolio.

Ørsted officers mentioned that PSEG will proceed to be a part of the development of the offshore infrastructure for Ocean Wind 1.

“PSEG has been a worthwhile associate as we advance Ocean Wind 1 thus far, and as we efficiently advance our US offshore wind imaginative and prescient,” mentioned David Hardy, CEO regional government of Ørsted Americas. “With a well-established presence within the US, we’re assured in our skill to push the mission ahead with industrial operations beginning as deliberate.”

Industrial operation in 2025

Ocean Wind 1 is anticipated to start sending electrical energy to the ability grid by the top of subsequent 12 months, with full industrial operation anticipated by 2025. Ørsted’s first foray into US offshore wind got here with the 30-MW Block Island pilot mission off the coast of Rhode Island, which is the primary offshore wind mission within the US. Ørsted presently has about 5 GW of US offshore wind tasks in improvement, along with about 5.5 GW of US onshore wind, photo voltaic, power storage, and e-fuel capability.

Lathrop Craig, senior vp and chief industrial officer for PSEG, in an announcement mentioned, “”As Ocean Wind 1 evaluates the optimum improvement path, it has develop into clear that it’s the most good for the mission for PSEG to go away and permit for a greater place investor to hitch the mission, in order that it will possibly keep a very good tax construction. Whereas this was a tough determination, it was pushed by one of the best pursuits of the mission and New Jersey’s offshore wind targets. PSEG will proceed to actively assist offshore wind in New Jersey and the area.

Soil Conservation

The Texas photo voltaic mission features a promise from Ørsted to donate about 1,000 acres of tall grass prairie to The Nature Conservancy, a nonprofit international environmental group. The ultimate funding determination for the Mockingbird mission, introduced on January 13, comes after Ørsted and Royal DSM—a worldwide well being and diet firm—signed a 10-year energy buy settlement for mission in 2021.

“The choice to construct Mockingbird represents an vital milestone for our onshore enterprise and for our enlargement into photo voltaic PV,” mentioned Hardy. “We look ahead to constructing Mockingbird and for this mission to start producing clear power on a big scale. Mockingbird will obtain this whereas doing so in a method that prioritizes conservation and our deep dedication to the communities we serve.

“We have to present inexperienced power for this era whereas defending pure habitats for the subsequent. That is why we prioritized the Smiley-Woodfin Prairie in Texas as our first biodiversity initiative in the USA,” mentioned Daniel Willard, Biodiversity Specialist at Ørsted. “We want to thank The Nature Conservancy for working with us on this conservation effort. Utilizing inside experience and exterior steering, we are going to proceed to hunt alternatives to guard the prairie and be sure that native vegetation and pollinators thrive.

Ørsted officers mentioned the photo voltaic farm is anticipated to generate $215 million and add 200 jobs to the regional financial system. The corporate goals to put in at the very least 50 GW of renewable power era capability by the top of 2030, together with 30 GW of offshore wind. The corporate this week additionally filed an software to construct 15 GW of recent offshore wind capability across the southern tip of Sweden and the Gulf of Bothnia, between Sweden and Finland.

Ørsted final week obtained approval from UK regulators so as to add power storage to the corporate’s 2.4-GW Hornsea 3 offshore wind mission within the North Sea.

—Darrell Proctor is senior affiliate editor for POWER (@POWERmagazine).