New Jersey Signs Historic Deal with Ørsted for 1.1 GW of Offshore Wind

by | Jun 24, 2019

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New Jersey Signs Historic Deal with Ørsted for 1.1 GW of Offshore Wind

(Photo: Ørsted’s Burbo Bank offshore wind farm in the United Kingdom. Credit: Paul Langrock)

The New Jersey Board of Public Utilities (BPU) signed a deal with wind developer Ørsted for a 1.1 GW capacity offshore wind farm located off the coast of Atlantic City. This represents the largest offshore wind procurement by any US state to date, Reuters reported.

Called Ocean Wind, the project is expected to be completed by 2024, subject to Ørsted’s final investment decision, according to the company. Headquartered in Denmark, Ørsted has around 5.6 GW of offshore wind capacity already installed around the world, including the 30-MW Block Island Wind Farm for Rhode Island.

“New Jersey is going to finally be open for business as far as offshore wind is concerned,” BPU president Joseph Fiordaliso said before the recent vote of approval, Reuters journalist Nichola Groom reported.

Ørsted plans to work with Public Service Enterprise Group’s (PSEG) non-utility affiliates, which the developer says will provide energy management services and potential lease of land for use in the project development and execution phase. PSEG has 2.2 million electric customers in the state.

The announcement firmly establishes a fast-growing global industry in New Jersey, said Thomas Brostrøm, CEO of Ørsted US Offshore Wind and president of Ørsted North America.

Earlier this year, Ørsted US Offshore Wind and the Responsible Offshore Development Alliance formed a partnership to improve communications between offshore wind energy developers and the commercial fishing industry. In addition to the Ocean Wind project, Ørsted has a 120-MW project for Maryland called Skipjack with expected commissioning by 2022.

The developer’s Northeast cluster, owned 50-50 with Eversource, includes Revolution Wind, a 704-MW project that will deliver power to Rhode Island and Connecticut. In addition, there’s the 130-MW South Fork project for Long Island, New York.

Ørsted’s application for New Jersey had been vying with ones from Equinor, and a joint venture between EDF Renewables North America and Shell New Energies US, Groom reported.

BPU members described Ørsted’s solicitation as historic, according to Groom, who also noted that it marks New Jersey Governor Phil Murphy’s first step toward contracting 3.5 GW of offshore wind by 2030. Last year Murphy signed an executive order directing the development of a plan for the state to achieve 100% clean energy by 2050.

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