Transaction Finalised: Ørsted Completes Acquisition of Eversource's Stake in Us Offshore Wind Farm Sunrise Wind

Fredericia, Denmark - Following the successful bid for the US offshore wind farm Sunrise Wind in the tender for offshore wind capacity in New York 4, the Danish energy company Ørsted has finalised Eversource's 50 percent share in the 924 MW offshore wind farm off the coast of New York.

Ørsted had announced the planned takeover on 24 January 2024, subject to Sunrise Wind being awarded the contract in the tender process that was still ongoing at the time.

The purchase price for Eversource's stake in Sunrise Wind amounted to USD 152 million at the time of closing. At the time of signing in January 2024, the transaction was valued at USD 230 million. According to Ørsted, the revised closing figure reflects the adjustments made due to lower actual versus forecast CAPEX spend between signing and closing.

With the closing of the transaction, Ørsted has assumed full ownership of the project, which has all state permits in place and recently signed an OREC (Offshore Wind Renewable Energy Certificates) agreement with the New York State Energy Regulatory Authority (NYSERDA) at a price of USD 146 per MWh for 25 years. The final investment decision for the project was made in March of this year.

"Sunrise Wind has been significantly de-risked and achieved important milestones since we agreed with Eversource to buy their share. The transaction is a value-accretive opportunity for Ørsted as we continue to develop the project," said David Hardy, Executive Vice President and CEO of the Americas region at Ørsted.

After an increase of almost 7 per cent in the previous week, the Ørsted share has so far fallen by 2.1 per cent to EUR 52.28 on the first two trading days of this week (closing price, 9 July 2024, Stuttgart Stock Exchange).

Source: IWR Online, Jul 07 2024