Eversource to Offload Stake in Two US Offshore Wind Projects for USD 1.1 Billion

Business & Finance

February 14, 2024, by Adnan Memija

Eversource Energy has executed a definitive agreement to sell its 50 per cent stake in two US offshore wind projects, South Fork Wind and Revolution Wind, to Global Infrastructure Partners (GIP), nearing closer to its goal of exiting the offshore wind industry.

The transaction allows Eversource to realise approximately USD 1.1 billion of cash proceeds upon closing and to exit these projects, which it owns jointly with Ørsted while retaining certain cost-sharing obligations for the construction of the 704 MW Revolution Wind offshore wind farm.

“We continue to believe that offshore wind represents the most significant opportunity to decarbonize the electric generation footprint of New England,” said Joe Nolan, Eversource Energy Chairman, President, and Chief Executive Officer.

“Eversource will remain an integral player in this historic shift to a clean energy generation mix by focusing on our strengths as a regulated transmission builder and operator and bringing the benefits of these investments to our customers.”

Ørsted’s 50 percent ownership interests are not affected by today’s announcement, said Eversource.

The company is expected to enter into a separate construction management agreement as a contractor to Revolution Wind to complete the onshore work that is currently underway. Eversource will maintain its previously announced tax equity investment in the 132 MW South Fork Wind.

The deal is expected to close in mid-2024.

At or before the closing of the sale to GIP, Ørsted and GIP plan to enter into definitive partnerships and services agreements, according to Eversource.

“This acquisition marks our fourth strategic joint venture with Ørsted, further solidifying our strong partnership with leading industry players. The South Fork Wind and Revolution Wind projects benefit from long-term offtake agreements and play a pivotal role in addressing the increasing demand for clean electricity,” said Bayo Ogunlesi, GIP’s Chairman and Chief Executive Officer.

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Located approximately 15 nautical miles southeast of Point Judith in Rhode Island, Revolution Wind offshore wind farm will comprise 65 Siemens Gamesa 11 MW wind turbines installed on monopile foundations.

Once up and running, the 704 MW project will deliver 400 MW of offshore wind power to Rhode Island and 304 MW to Connecticut, powering more than 350,000 homes across the two states.

South Fork Wind is located some 30 kilometres southeast of Block Island and some 56 kilometres east of Montauk Point and comprises twelve Siemens Gamesa 11 MW wind turbines. The offshore wind farm delivered its first power to New York’s power grid in December and is planned to be fully operational in 2024.

When it comes to Eversource, the company announced in May 2023 that it would sell its 50 per cent interest in approximately 175,000 offshore acres to Ørsted for USD 625 million. The transaction closed on 7 September 2023.