Offshore Wind Farm Developer Ørsted Buys Out Partner

One of the companies planning to build the Sunrise Wind farm 30 miles off the coast of Montauk has bought out its partner and forging ahead with developing with the project alone.

Danish wind farm developer Ørsted is acquiring Eversource’s half of Sunrise Wind, should the wind farm project clear the ongoing New York State and federal approval process. The same two companies are behind the South Fork Wind project that is more than halfway completed and is already powering the Hamptons — a project that is unaffected by the change of plans with Sunrise Wind.

“This transaction is a value-accretive opportunity for Ørsted and the best path forward for the project,’ said David Hardy, group executive vice president and CEO of Region Americas at Ørsted. “We’re building a future offshore wind hub that is strategic for Sunrise Wind, if awarded, as well as for upcoming solicitations in the region, helping us to differentiate and de-risk potential future bids and projects.”

The development comes as offshore wind farm experts acknowledged that supply chain issues and regulatory hurdles ahead have dimmed hopes of smooth sailing ahead as the industry gets a foothold in the U.S.

The two companies are more than halfway through installing 12 offshore wind turbines for South Fork Wind, which is considered America’s first utility-scale offshore wind farm in federal waters.

Sunrise Wind, on the other hand, needs an award in the ongoing New York 4 solicitation for offshore wind capacity, signing of an Offshore Wind Renewable Energy Certificates contract with the state’s energy agency, finalization of acquisition agreements, receipt of construction and operations plan (COP), and other approvals, officials say. If approved, it is slated for completion by 2026 and would help the state achieve its goal of reaching 70%renewable energy by 2030.

“We’re proud of the work we have already accomplished for Sunrise Wind and look forward to continuing our leadership position building onshore interconnection systems for offshore wind projects in the Northeast,” said Joe Nolan, chief executive officer and President of Eversource Energy.