Danish offshore wind farm developer Ørsted is making a big move onshore by acquiring a major U.S. renewable energy company.
Ørsted announced it is buying 100 percent of Lincoln Clean Energy (LCE) for about $580 million (500 million €) from owner I Squared Capital. Since I Squared acquired the firm in 2015, LCE has built or is completing than 800 MW in onshore wind generation capacity.
The U.S. acquisition is part of Ørsted’s long-term plan to diversify into other renewable energies and regions. The LCE transaction, if and when it gains U.S. regulatory approvals, could close by the end of the year.
“The U.S. is a leading market in renewable energy generation,” Ole Kjems Sørensen, EVP at Ørsted and Head of Partnerships, M&A & Asset Management, said in a statement. “With the acquisition of LCE, we acquire an attractive portfolio with a good mix of operating and development capacity.”
LCE will continue to be run by its existing management team and will operate outside of its new owner’s wind power business, according to the release. Since Declan Flanagan founded LCE in 2009, the company has developed more than 1.8 GW of renewable energy projects in California, New Jersey and Texas.
Lincoln has offices in Chicago and Austin, Texas.
Ørsted, meanwhile, broadens its U.S. renewables push that actually began several years ago. In Virginia, it is set for building two 6-MW wind turbines for the first phase of Dominion Energy’s Coastal Offshore Wind Project. The Danish company also is active in wind and solar development throughout the U.S.