Ørsted has entered into an agreement with Eversource to acquire Eversource’s 50% ownership stake in Sunrise Wind, a 924 MW offshore wind farm set to supply power to New York and become the sole owner of the project.
According to Ørsted, the completion of the acquisition is contingent upon the successful award of Sunrise Wind in the ongoing New York 4 solicitation for offshore wind capacity and other relevant regulatory approvals.
About the Sunrise Wind Project
The Sunrise Wind Project is a significant offshore wind farm with a projected capacity of approximately 924 MW, offering the potential to supply power to nearly 600,000 homes.
Anticipated to be fully operational in 2025, the project’s timeline is subject to the U.S. BOEM’s Notice of Intent (NOI) schedule. Geographically, Sunrise Wind is strategically located at least 30 miles east of Montauk Point, a positioning that aims to make it virtually unnoticeable to Long Island residents and beachgoers.
The Sunrise Wind Project will contribute to New York’s vision of achieving a carbon-free energy grid by 2040 and is expected to generate a substantial economic impact by creating a minimum of 800 direct jobs during the construction phase.
In addition to these direct employment opportunities, the project is projected to stimulate the creation of thousands of indirect and induced jobs that will support various aspects of project work.
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Sunrise Wind Project - January 2024 Updates
Following Ørsted’s conditional acquisition announcement, the joint venture partners have confirmed submitting a new proposal for Sunrise Wind in response to New York’s latest offshore wind solicitation.
This updated project, if selected, aims to fulfil its commitment to delivering substantial economic benefits across New York and playing a critical role in advancing the state’s climate goals. The Sunrise Wind design has undergone thorough review and acceptance by all relevant state agencies.
Additionally, the project has successfully secured all major supplier and project labour agreements, positioning it to commence work shortly after receiving the award, pending all final federal approvals. The wind turbine supplier will be Siemens Gamesa, which has been conditionally awarded the supply contract in 2019.
It is understood the balance of plant agreements is split across different contractors, as per table below:
| BoP Contractors | BoP Package / Responsibilities |
|---|---|
| Fugro | Perform a site characterisation programme for the project |
| Siemens Energy (in consortium with Aker Solutions) | Supply the HVDC transmission system for the 924MW Sunrise Wind Farm |
| Haugland Energy Group | Install the underground duct bank system for the project’s onshore transmission line. |
| WSP USA | Serve as the professional engineer for the offshore HVDC converter platform and provide engineering services for the design of the HVDC platform to Aker Solutions |
| Aker Solutions | Develop the platform, including a steel jacket substructure and a topside platform deck containing the electrical equipment. |
| Dominion Energy | Utilize the offshore wind turbine installation vessel Charybdis to support the installation works of the project. |
Suggested Reading: Balance of Plant (BoP) Contract: What is it? How it Works?
Sunrise Wind Project – Orsted’s Acquisition Agreement details
According to Orsted, the acquisition of Sunrise Wind hinges on several key factors, which include:
- the successful award of Sunrise Wind in the ongoing New York 4 solicitation for offshore wind capacity;
- the signing of an OREC (Offshore Wind Renewable Energy Certificates) contract with New York’s energy agency, NYSERDA;
- entering into long-form acquisition agreements;
- receiving the construction and operations plan (COP); and
- obtaining relevant regulatory approvals.
In the event that Sunrise Wind is not successful in the solicitation, the existing OREC contract for Sunrise Wind will be cancelled as per the state’s requirements, and the Ørsted-Eversource JV will remain intact.
On the other hand, if the project is provisionally awarded, a new contract will be negotiated with NYSERDA under the updated terms of the current solicitation.
Orsted Leadership comments on the Sunrise Wind Project full ownership
David Hardy, Executive Vice President and CEO of Region Americas at Ørsted, has expressed confidence in pursuing full ownership of Sunrise Wind if the project is successfully awarded in New York 4.
Following a comprehensive risk review of Ørsted’s US portfolio, the transaction is seen as a value-accretive opportunity for the company and the optimal path forward for the project.
Sunrise Wind, if awarded, will mark Ørsted’s third offshore wind farm off the northeast coast, complementing the ongoing construction of South Fork and Revolution Wind. The northeast region is gaining prominence as a priority for Ørsted, focusing on developing projects, port assets, a skilled workforce, and partnerships within the supply chain.
This strategic approach aims to build a future offshore wind hub that benefits Sunrise Wind and positions Ørsted favourably for upcoming solicitations in the region. This effort helps differentiate and mitigate potential future bids and project risks.
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