Ørsted Acquires Deepwater Wind for $510 Million

Deepwater Wind 35-MW offshore windfarm. Ørsted acquired Deepwater Wind in 2018

If you can’t win the bids, just purchase the winning bidder.

On Monday, global offshore wind leader Ørsted announced that it had entered into an agreement to acquire a 100 percent of Rhode Island-based Deepwater Wind at a purchase price of US $510 million. Deepwater wind built the first U.S. offshore wind farm — the 30-MW Block Island Wind — and is currently constructing two additional facilities off Long Island, New York (South Fork at 90 MW) and Connecticut (Revolution Wind at 600 MW).

Ørsted had bid on the Connecticut project as well as another one in Massachusetts but had lost both of those bids, despite the fact that it is the largest wind farm developer in the world.

With the purchase of Deepwater, Ørsted now owns the rights to continue construction of both of those facilities as well as several others along the east coast of the United States. According to a press release, Deepwater Wind’s portfolio has a total potential capacity of approx. 3.3GW.

Read More: Who’s Who in U.S. Offshore Wind: Key Developers and Major Projects in the Pipeline

Recently, Ørsted announced that it would be constructing two 6-MW wind turbine positions for phase one of Dominion Energy’s Coastal Virginia Offshore Wind Project.

Ørsted has exclusive rights with Dominion Energy to discuss the potential development of up to 2GW of offshore wind capacity.

With the combined organization and asset portfolio, Ørsted will be able to deliver clean energy to the seven states on the US East Coast that have already committed to build more than 10GW of offshore wind capacity by 2030.

Deepwater Wind CEO Jeff Grybowski will continue to head the new organization alongside Ørsted US Offshore Wind CEO Thomas Brostrøm as Co-CEOs. Deepwater’s CFO David Hang will continue as will COO Claus Bøjle Møller from the Ørsted team.

The name of the new organization will be Ørsted US Offshore Wind. The transaction is subject to clearance by the U.S. competition authorities and is expected to close by end of 2018.

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Jennifer Runyon
Jennifer Runyon has been studying and reporting about the world's transition to clean energy since 2007. As editor of the world's largest renewable energy publication, Renewable Energy World, she observed, interviewed experts about, and reported on major clean energy milestones including Germany's explosive growth of solar PV, the formation and development of the U.S. onshore wind industry, the U.K. offshore wind boom, China's solar manufacturing dominance, the rise of energy storage, the changing landscape for utilities and grid operators and much, much, more. You can reach her at Jennifer.Runyon@ClarionEvents.com Today, in addition to managing content on Renewable Energy World and POWERGRID International, she also serves as the conference advisory committee chair for DISTRIBUTECH, a globally recognized conference and expo for the transmission and distribution industry. In her role, she works in close cooperation with a large team of committed industry executives to shape the educational content for the event. She also helps assemble the renewable energy content for POWERGEN and helped launch the first Grid-Scale Storage Summit, a co-located event at HYDROVISION International. She has traveled to Germany to see onshore and offshore wind installations; Iceland to see geothermal energy in action; and France to see cutting-edge smart grids. In the U.S. she has visited and reported about bioenergy power plants in Florida, both large-scale and small-scale hydropower; and multiple wind farms, solar PV, and CSP installations. Formerly, she was the managing editor of Innovate Forum, an online publication that focused on innovation in manufacturing. Prior to that she was the managing editor at Desktop Engineering magazine. In 2008, she won an "Eddy Award" for her editing work on an article about solar trees in Vienna. In 2010, RenewableEnergyWorld.com was awarded an American Business Media Neal Award for its eNewsletters, which were created under her direction. She holds a Master's Degree in English Education from Boston University and a BA in English from the University of Virginia.

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