US-based energy company Public Service Enterprise Group (PSEG) has signed a definitive agreement with Ørsted North America to acquire a 25% ownership interest in the Ocean Wind project with a 1,100MW capacity.

Located off the coast of southern New Jersey, the Ocean Wind project should come online in 2024, subject to federal permitting timelines, other development and construction activities, and final investment decisions by Ørsted and PSEG.

Once operational, the wind facility is expected to generate clean energy that will be sufficient to power half a million New Jersey homes.

The deal between PSEG and Ørsted could benefit New Jersey’s development of an offshore wind supply chain, job creation efforts and environmental stewardship.

PSEG chairman, president and CEO Ralph Izzo said: “As New Jersey’s first offshore wind project, Ocean Wind will lead the way for a productive first step into this forward-leaning industry, bringing with it new skills, jobs and carbon-free energy.

“Further, this investment in offshore wind energy is well-aligned with our company’s long-term clean energy strategy.”

Financial details of the deal remained undisclosed.

Completion of the deal is subject to approval by the New Jersey Board of Public Utilities and other customary closing conditions and will reportedly take place in the first half of next year.

Ørsted president and CEO Henrik Poulsen said: “In addition to clean energy, Ocean Wind will bring jobs and industrial development to the Garden State during development and construction and throughout its operational lifetime. I look forward to delivering this flagship renewable energy project to New Jersey in close cooperation with PSEG.”

Last June, the New Jersey Board of Public Utilities selected Ocean Wind as its first offshore wind energy project.