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Ørsted Acquires Deepwater Wind for $510 Million

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.