Oersted to Buy Eversource Energy's Interest in Uncontracted U.S. Offshore Wind Lease
26 May 2023 - 7:57AM
Dow Jones News
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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