Ørsted sanctions Revolution Wind, withdraws from Ocean Wind developments
Offshore staff
FREDERICIA, Denmark — Ørsted has taken FID on the 704-MW Revolution Wind project offshore Connecticut and Rhode Island, a 50:50 joint venture with Eversource.
Onshore construction has started, and offshore construction will get underway in 2024, with the project expected to be completed and fully operational in 2025.
The wind farm will cover an area 32 miles southeast of the Connecticut coast, 15 miles south of the Rhode Island coast, and 12 miles southwest of Martha’s Vineyard. It will provide 304 MW of electricity to consumers in Connecticut and 400 MW to Rhode Island.
In its latest results statement, Ørsted welcomed a request by the New York State Energy Research and Development Authority for information on an accelerated solicitation for offshore wind capacity.
This could allow the company to re-bid Sunrise Wind, another 50:50 partnership with Eversource, at a price that reflects current component and financing costs.
Ørsted continues to reconfigure its Skipjack Wind project to minimize the planned expenditure and remains in talks with stakeholders in Maryland.
However, the company has decided to halt development of the Ocean Wind 1 and 2 projects offshore southern New Jersey, a joint venture with Public Service Enterprise Group, following further supplier delays that further delay the project schedules.
In addition, Ørsted took note of certain assumptions, including tax credit monetization and the timing and likelihood of obtaining final construction permits, and increases to long-dated US interest rates. All had a negative impact on the business case.
Mads Nipper, group president and CEO of Ørsted, said, “We will now assess the best way to preserve value while we cease development of the projects.”
The decision to withdraw from Ocean Wind comes just after two weeks after the Bureau of Ocean Energy Management (BOEM) approved Ørsted’s Construction and Operations Plan (COP) for Ocean Wind 1.
The development was set to provide employment for hundreds of staff at the new EEW monopiles fabrication complex at the Paulsboro Marine Terminal in Gloucester County as well as a Phase 2 development of a waterfront maintenance and operations facility being built in the Bungalow Park neighborhood by Ørsted North America.
In September Orsted said it was prepared to walk away from projects in the US unless the country's administration guarantees more support, Bloomberg News reported on Sept. 5, citing the company's CEO.
11.01.2023
