Arthur J. Villasanta – Fourth Estate Contributor
Copenhagen, Denmark (4E) – Danish company Ørsted A/S, the world’s largest offshore wind farm company, has acquired U.S. offshore wind developer Deepwater Wind for $510 million.
Deepwater Wind built the Block Island Wind Farm in Rhode Island, the only commercial offshore wind farm in the United States. Block Island generates 30 megawatts of wind power.
Deepwater Wind will be renamed “Ørsted U.S. Offshore Wind” after its acquisition by Ørsted finalizes before the year ends. It was formerly owned by U.S.-based hedge fund D.E. Shaw Group. Ørsted took complete ownership of Deepwater Wind by acquiring a 100% equity interest.
Ørsted said that Deepwater Wind’s portfolio has a total potential capacity of some 3.3 gigawatts (GW). This includes offshore wind development projects in Rhode Island, Connecticut, Maryland and New York. Orsted’s offshore wind portfolio in the U.S. has a capacity of 5.5 GW.
CEO of Ørsted Wind Power Martin Neubert welcomed the deal. He said the acquisition will create the “number one offshore wind platform in North America.”
Neubert said the deal will merge “Deepwater Wind’s longstanding expertise in originating, developing and permitting offshore wind projects in the U.S., and Ørsted’s unparalleled track-record in engineering, constructing, and operating large-scale offshore wind farms.”
Thomas Brostrøm, president of Ørsted North America, said the company can see a very large industry emerging.
“We believe that, over the next 10 years, we can see 10 gigawatts of offshore wind being built—and we want to be in a good position to take advantage of this growth.”
Ten gigawatts of offshore wind is a massive capacity. Ørsted says it will only have 7.45GW by the end of 2020. That includes offshore wind farms in the UK, Denmark, Germany and Taiwan. Ørsted operates more than 1,000 offshore wind turbines worldwide.
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