PSEG to Acquire 25% Stake in Ørtsed’s 1.1 GW Offshore Project

PSEG will enter into exclusive negotiations with Ørsted, for PSEG to potentially become an equity investor in the 1.1 GW ocean wind offshore project

The Public Service Enterprise Group (PSEG), a leading energy company with a utility serving 2.3 million New Jersey electricity customers, has announced it will enter into exclusive negotiations with Ørsted, for PSEG to potentially become an equity investor in one of Ørsted’s offshore wind projects. Subject to negotiations toward a joint venture agreement, advanced due diligence and any required regulatory approvals, PSEG would acquire 25 percent of the 1.1 GW Ocean Wind project.

“Ørsted’s experience in the offshore wind industry has taught us the importance of strong partnerships,” said Thomas Brostrøm, president of Ørsted North America and CEO of Ørsted U.S. Offshore Wind. “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.”

Ocean Wind is a 1,100MW offshore wind project which will supply more than half a million New Jersey homes with clean power from its location 15 miles off the coast of Atlantic City. Subject to permitting and final investment decision, Ocean Wind is expected to be commissioned in 2024.

“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,” said PSEG Power President and Chief Operating Officer Ralph LaRossa.

In June, we reported that the New Jersey Board of Public Utilities (NJBPU) had selected Ocean Wind, an offshore wind energy project proposed by Ørsted with support from Public Service Enterprise Group (PSEG), to negotiate a 20-year offshore wind renewable energy credit (OREC) for an offshore wind farm with a capacity of 1,100MW.

Located off the coast of Atlantic City, Ocean Wind will be New Jersey’s first large-scale offshore wind farm. The project will supply more than half a million New Jersey homes with clean power. The project is expected to create over 3,000 direct jobs annually through the development and the three-year construction cycle. Ørsted is also proceeding with plans to establish an operations and maintenance (O&M) base in Atlantic City that will provide permanent, high-skilled jobs during the 25+ years lifespan of the project.