RI’s Deepwater Wind Acquired by Danish Energy Company for $510 Million UPDATED

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RI’s Deepwater Wind Acquired by Danish Energy Company for $510 Million UPDATED

Jeff Grybowski, CEO Deepwater
Ørsted, the Danish power company, has entered into an agreement with the D.E. Shaw Group to acquire a 100% equity interest in Rhode Island-based Deepwater Wind for more than $510 million, the companies announced on Monday morning.

The two companies’ offshore wind assets and organizations will be merged into the leading US offshore wind platform with the most comprehensive geographic coverage and the largest pipeline of development capacity.

Deepwater Wind, the leading U.S. offshore wind developer, has built a geographically diverse portfolio of projects along the U.S. East Coast. Deepwater's Block Island project was the first offshore wind project in America.

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Jeffrey Grybowski, CEO of Deepwater Wind, says: “Ørsted is one of the world’s great clean energy companies and real pioneers in the offshore wind sector. We could not be more pleased with this combination, which will bring together two great teams to realize an enormous clean energy resource for coastal populations in the U.S.”

Impact on Rhode Island

According to the companies, the combined entity plans to grow Deepwater Wind’s current Rhode Island presence in the coming years, making Providence and Boston the two major hubs of the company’s U.S. offshore wind activities.

Development of the company’s new 50-turbine Revolution Wind project for Rhode Island and its investments in Rhode Island will continue as planned. The Revolution Wind project is expected to create over 800 construction jobs in Rhode Island and dozens more long-term maintenance and operations jobs, says the company.

Current Deepwater Wind personnel based in Rhode Island will continue to work in that office, and the new company is expected to add new long-term corporate jobs in Rhode Island.

Grybowski has been named co-CEO of the new combined company. Grybowski and a new Chief Operating Officer from the Ørsted organization will be based in Rhode Island. Other senior executives, including Thomas Brostrøm, CEO of the new organization, will be based in Boston.​

Deepwater Wind’s portfolio has a total potential capacity of approx. 3.3GW comprising:

Three offshore wind development projects in Rhode Island, Connecticut, Maryland and New York totaling 810MW of capacity with long-term revenue contracts in place or pending finalization.

Approximately 2.5GW of offshore wind development potential across three well-sited BOEM lease areas in Massachusetts and Delaware. Of these 2.5GW, 1.2GW is developed through an equal joint venture with PSEG, a leading New Jersey utility.

Ørsted’s current US offshore wind portfolio has a total capacity of approx. 5.5GW comprising:

Development rights for up to 2GW at the Bay State Wind site off the coast of Massachusetts owned in a joint venture with Eversource.
Development rights for up to 3.5GW at the Ocean Wind site off the coast of New Jersey.
In Virginia, Ørsted will be constructing two 6MW wind turbine positions for phase one of Dominion Energy’s Coastal Virginia Offshore Wind Project. Ørsted has exclusive rights with Dominion Energy to discuss the potential development of up to 2GW of offshore wind capacity.

With the combined organization and asset portfolio, Ørsted will be able to deliver clean energy to the seven states on the US East Coast that have already committed to build more than 10GW of offshore wind capacity by 2030, according to the announcement.

Martin Neubert, CEO of Offshore Wind at Ørsted, says: “With this transaction we’re creating the number one offshore wind platform in North America, merging the best of two worlds: Deepwater Wind’s longstanding expertise in originating, developing and permitting offshore wind projects in the US, and Ørsted’s unparalleled track-record in engineering, constructing, and operating large-scale offshore wind farms. 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.”

Thomas Brostrøm, CEO of Ørsted US Offshore Wind and President of Ørsted North America, says: “Deepwater Wind has done a fantastic job as a first-mover in US offshore wind, and I look forward to joining and integrating the two US organizations. We have exciting times ahead of us delivering large-scale clean energy projects to households and businesses along the Eastern Seaboard. Ørsted will maintain a strong presence in Massachusetts and Rhode Island and will, of course, honor the local commitments associated with Deepwater Wind’s projects along the East Coast.“

After closing of the transaction, the name of the new organization will be Ørsted US Offshore Wind. The new organization will be represented by a local management team headed by Ørsted US Offshore Wind CEO Thomas Brostrøm, Co-CEO Jeff Grybowski, President and CFO David Hang both from the Deepwater Wind team, and COO Claus Bøjle Møller from the Ørsted team.

The transaction is subject to clearance by the U.S. regulatory agencies and is expected to close by end of 2018.


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