Ørsted acquires offshore developer Deepwater Wind for $510m

10 October 2018 (Last Updated October 10th, 2018 10:25)

Global offshore wind farms developer Ørsted has agreed to acquire 100% stake in US-based offshore wind developer Deepwater Wind for a purchase price of $510m.

Ørsted acquires offshore developer Deepwater Wind for $510m
Wind turbines. Credit: Matt Artz on Unsplash.

Global offshore wind farms developer Ørsted has agreed to acquire 100% stake in US-based offshore wind developer Deepwater Wind for a purchase price of $510m.

To this end, the company has signed an agreement with D.E. Shaw Group. Established in 2007, Deepwater Wind currently has a built-up portfolio of 810MW of development stage assets.

"Combination of the two companies’ is expected to generate and deliver clean energy to seven states on the east coast."

Ørsted Offshore Wind CEO Martin Neubert said: “Today’s announcement consolidates Ørsted’s position as the global market leader in offshore wind with a strong foothold across Europe, North America and Asia-Pacific.

“D.E. Shaw & Co. has been a dedicated owner of Deepwater Wind with a vision to pioneer offshore wind in the US and being at the innovative forefront of technology investment. We are excited to continue this journey and take the industry to the next level.”

Completion of the deal is subject to clearance by the US competition authorities and is expected to close by the end of this year.

Upon completion of the transaction, the newly formed organisation will be named as Ørsted US Offshore Wind.

Combination of the two companies’ is expected to generate and deliver clean energy to seven states on the east coast.

Currently, Deepwater Wind’s portfolio has a total potential capacity of nearly 3.3GW, while Ørsted’s current US offshore wind portfolio capacity is around 5.5GW.

Ørsted recently acquired US developer of onshore wind farms Lincoln Clean Energy. It is also constructing two 6MW wind turbine positions of Dominion Energy’s Phase One Coastal Virginia offshore wind project.