08 Oct Ørsted to form major US offshore wind platform with Deepwater Wind acquisition
Danish renewable energy company Ørsted has agreed to buy US-based Deepwater Wind for US$510 million, in a deal that will create the largest offshore wind platform in the US.
Ørsted is the world’s largest offshore wind developer but has, until now, failed to develop a presence in the nascent US offshore wind sector.
The company’s 100% purchase of Rhode Island-based Deepwater from the DE Shaw Group resembles a key execution of its strategy to expand in the growing US market, which has recently seen a number of auctions for offshore projects along the Eastern seaboard.
Deepwater is the builder of the only operating US offshore wind farm and has a portfolio with a capacity of around 3.3GW, while Ørsted’s US portfolio has a capacity of 5.5GW. The amalgamation of these two portfolios will create the largest offshore wind platform in the US.
In May, Deepwater was given the green light by the state of Rhode Island to develop the 400MW Revolution Wind project, located to the South of Martha’s Vineyard.
“We expect the acquisition to deliver a healthy value creation spread on top of our cost of capital, with additional significant strategic upside,” said Ørsted in a press release.
The combined entity will be named Ørsted US Offshore Wind, with closing of the transaction expected to occur by the end of the year.