Ørsted, Eversource Greenlight 924 MW Sunrise Wind After Securing US Approval

Business & Finance

March 27, 2024, by Adnan Memija

The 924 MW Sunrise Wind offshore wind farm has received its Record of Decision (ROD) from the US Department of Interior’s Bureau of Ocean Energy Management (BOEM). In addition, the project’s developers, Ørsted and Eversource, have taken a final investment decision (FID) on Sunrise Wind and will now advance with onshore construction activities.

Located approximately 30 miles (about 48 kilometres) east of Montauk, New Jersey, Sunrise Wind is expected to be the country’s largest offshore wind farm once it is completed in 2026, generating enough clean energy to power nearly 600,000 New York homes.

BOEM’s issuance of the ROD formally concludes its National Environmental Policy Act review process and precedes the anticipated approval of Sunrise Wind’s construction and operations plan (COP), expected this summer.

According to Ørsted, the offshore wind project will bring USD 700 million of investment to Suffolk County and create 800 direct jobs and thousands of indirect jobs in the state.

“We are poised and ready to start constructing the transmission system to connect Sunrise Wind’s clean power to the New York electric grid. It’s a momentous infrastructure project, to be built by local contractors and the men and women of New York’s building trades and other labor unions,” said Joe Nolan, Chairman, President, and Chief Executive Officer of Eversource Energy.

In response to comments from government partners, key stakeholders, and the public, and after considering project feasibility, BOEM selected a preferred alternative that includes fewer wind turbines than proposed by Sunrise Wind.

According to BOEM, this decision aims to accommodate the geotechnical feasibility of the project and reduce impacts on the benthic habitat and Atlantic cod.

New York State recently selected Sunrise Wind to negotiate a 25-year contract to provide green energy to the state. The project is finalising agreements with New York’s energy agency, New York State Energy Research and Development Authority (NYSERDA) on this offshore wind renewable energy certificates (OREC) contract.

“New York is already home to the trailblazing South Fork Wind project, and with Sunrise Wind we’ll build on that foundation, broadening the economic benefits of offshore wind while delivering far more clean renewable power,” said David Hardy, Executive Vice President and CEO of Region Americas at Ørsted.

“With the federal Record of Decision in hand and our final investment decision having been made, we can continue to create hundreds of local union jobs and stand up a vibrant supply chain.”

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As previously announced, Ørsted has agreed to acquire Eversource’s 50 per cent ownership share in Sunrise Wind, becoming the project’s sole owner, subject to signing of an OREC contract with NYSERDA, finalization of acquisition agreements, COP approval, and other relevant regulatory approvals.

Eversource will remain contracted to lead the project’s onshore construction.

Last year, Ørsted experienced financial losses within its US offshore wind portfolio and canceled the development of the Ocean Wind 1 and Ocean Wind 2 offshore wind projects in New Jersey.