Denmark based Orsted reached an agreement with the D. E. Shaw Group to buy 100% equity interest in Deepwater Wind, based in Rhode Island, for the price of $510 million, announced both companies on Monday.
The takeover will create the country’s largest offshore grid with close to 9 gigawatts in the planning stage in federal waters off the eastern seaboard of the U.S. That equates to enough energy to power close to 4.5 million homes.
The acquisition by Orsted consolidates its position as the worldwide market leader for offshore wind as it already has a strong foothold in Europe, Asia-Pacific and now North America, said the Offshore Wind CEO at Orsted Martin Neubert
The CEO cited a best of both worlds with the experience of Deepwater Wind permitting projects of offshore wind in the United States and Orsted’s track record that is unparalleled in engineering, constructing as well as operating large-scale wind farms located offshore.
The Danish company has offshore wind parks in the Netherlands, the UK, Germany and Denmark and projects in Taiwan currently under development. The company was known previously as Danish Natural Gas and Oil and has roots as far back as 1972.
Deepwater Wind is the developer of Block Island Wind, which is the first and only U.S. offshore wind farm located off the coast of Rhode Island, which went live during 2016.
Deepwater Wind was founded in 2007 and won contracts of clean energy to deliver Rhode Island 400 megawatts and Connecticut 200 megawatts before the end of 2023.
Its Skipjack project of the coast of Maryland and its 90-megawatt project off New York’s Long Island should go live before the start of 2023. The U.S.-based company also has potential for 2.5 gigawatts off Delaware and Maryland.
Orsted has the rights to 3.5 megawatts as Ocean Wind off the coast of New Jersey. It has a joint venture with Eversource that has a 2-gigawatt lease off Massachusetts.
Orsted is planning installations in Virginia for Dominion Energy as well as its own Coastal Virginia Wind Project, said a company statement.