New Jersey-based utility holding company Public Service Enterprise Group (PSEG) is negotiating with Danish energy infrastructure firm Ørsted about investing in an offshore wind project.
PSEG is exclusively talking with Ørsted about taking a 25 percent stake in Ocean Wind. It is a planned 1,100-MW farm which would be 15 miles off the coast of Atlantic City.
If developed and commissioned by 2024, as planned, Ocean Wind would supply enough power for more than 500,000 New Jersey homes. Ørsted is awaiting permitting approvals and a final investment decision.
“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.
PSEG will complete its due diligence and wait for the required regulatory approvals before finalizing the joint venture agreement.
Earlier this year, the New Jersey Board of Public Utilities selected Ocean Wind for its offshore energy project. At the time, PSEG was already working with Ørsted to support the project on energy management services and potential lease of land for the development and execution phases.
“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.”
New Jersey Gov. Phil Murphy has announced a renewable energy goal of supplying more than 1.5 million New Jersey homes with offshore wind power by 2030.
PSEG oversees several utilities in the region, including Public Service Electric & Gas, PSEG Power and PSEG Long Island. It provides power to more than 2.2 million customers.
Ørsted develops onshore and offshore wind projects worldwide, including six in the U.S. totaling more than 2,900 MW.
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(Rod Walton is content director for Power Engineering and POWERGEN International. He can be reached at 918-831-9177).