ES

By Sabela Ojea

Oersted said Thursday that it has signed a deal to buy Eversource Energy's 50% interest in the uncontracted federal offshore wind lease both parties own for $625 million.

As part of the agreement, the Danish energy company would buy contracts and leases for strategic port facilities and other assets.

Oersted would take full ownership of partnerships with the Port of Providence, the Port of Davisville, and Quonset Point, all in Rhode Island, and with Connecticut's New London State Pier, it added.

The transaction is expected to close by the end of the third quarter, subject to regulatory approvals.

Eversource has also entered into a binding letter of intent with Oersted to use a portion of the proceeds from the sale to provide tax equity for the South Fork Wind project through a new tax equity ownership interest.

Eversource would recover this investment in the form of investment tax credits, Oersted said.

Construction of New York's South Fork offshore wind farm project commenced in early 2022, with commercial operation expected in late 2023.

Write to Sabela Ojea at sabela.ojea@wsj.com

(END) Dow Jones Newswires

May 25, 2023 17:42 ET (21:42 GMT)

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