Danish energy giant Ørsted has agreed to acquire Eversource Energy’s 50% stake in an uncontracted federal offshore wind lease joint venture by the two companies for $625m (NKr6.89bn).

The agreement also covers contracts and partnerships that are key for operational assets.

The deal awaits regulatory clearance and is set for completion in the third quarter of 2023.

Ørsted confirmed that the agreement will bolster its position in the US offshore wind sector and showcases its commitment to developing a supply chain that can create jobs in the US.

The company will acquire lease area OCS-A 500, 187,000 acres of uncontracted seabed with a potential production capacity of 4GW.

It will also acquire contracts and leases for port facilities and other assets and take ownership of partnerships with the Port of Providence, the Port of Davisville and Quonset Point, all in Rhode Island, and with Connecticut’s New London State Pier.

Ørsted will also own an operations and maintenance hub in East Setauket, New York, and the charter agreement for an offshore wind service operation vessel that is being built at Edison Chouest’s facility in Houma, Louisiana. 

Ørsted Region Americas executive vice-president and CEO David Hardy stated: “I want to thank Eversource for our six-year partnership and for their expertise that has strategically advanced the onshore scopes of our three projects, which will deliver renewable energy to Rhode Island, Connecticut and New York.

“This acquisition further demonstrates our long-term commitment to building an American offshore wind energy industry and the value creation opportunities we see in the US market. In addition to taking full ownership of seabed that is familiar to our team after years of work in this area, we will also be the sole bidder in our New York 3 and Rhode Island 2 active offshore wind solicitations.

“The combination of the seabed and additional components in this agreement further establish a major hub in the north-east for our activities and future opportunities.” 

Eversource stated that it will use a portion of the proceeds to provide tax equity for the South Fork wind farm. Construction on the project began early in 2022.

The investment is expected to be recovered as investment tax credits to be received around the project’s commercial operations date, anticipated in the later part of 2023.

Eversource also stated that it was in the company’s best long-term interest to sell its stake in three jointly owned contracted offshore wind projects, South Fork Wind, Revolution Wind and Sunrise Wind, with a total capacity of 1.75GW.