Danish wind energy company Ørsted and Public Service Enterprise Group, an energy company with a utility serving 2.3 million New Jersey electricity customers, entered into negotiations Tuesday for PSEG to potentially become an equity investor in one of Ørsted’s offshore wind projects.
This pending deal is subject to negotiations toward a joint venture agreement, advanced due diligence, and any required regulatory approvals. Under it, PSEG would acquire 25 percent of Ocean Wind, a 1,100-megawatt offshore wind project that will supply more than 500,000 New Jersey homes with clean power. The New Jersey Board of Public Utilities approved the Ocean Wind project in June.
Ocean Wind would be located 15 miles off the coast of Atlantic City and would come into existence in 2024.
“Ørsted’s experience in the offshore wind industry has taught us the importance of strong partnerships,” Thomas Brostrøm, president of Ørsted North America and chief executive officer of Ørsted U.S. Offshore Wind, said. “Given PSEG’s track record for success and history providing energy solutions for communities across the Mid-Atlantic region, we are thrilled at the prospect of having them join the Ocean Wind project.”
“We are pleased about the opportunity to explore a partnership with Ørsted, a world leader in offshore wind development, and help New Jersey achieve its goal of carbon-free generation by 2050,” PSEG Power President and Chief Operating Officer Ralph LaRossa said.