Ørsted, world leader in offshore wind energy, recently completed the acquisition of the remaining 50% of Sunrise Wind held by Eversource. The 924 MW project, located off the coast of New York, represents a strategic investment for the Danish company. Initially announced for January 2024, the acquisition was completed for USD 152 million, adjusted from the initial valuation of USD 230 million due to lower-than-expected CAPEX expenditure.
With this acquisition, Ørsted assumes full ownership of Sunrise Wind, which has obtained all the necessary federal permits. In addition, the project recently signed an OREC (offshore wind renewable energy certificates) contract with New York’s energy agency, NYSERDA, fixing the price at 146 USD per MWh for a 25-year period. The final investment decision for the project was made in March 2024, consolidating Ørsted’s commitment to the development of offshore wind energy.
Economic and industrial outlook
David Hardy, Executive Vice President and CEO of the Americas region at Ørsted, emphasized the importance of this transaction: “Sunrise Wind has been significantly de-risked and has reached significant milestones since our agreement with Eversource. This transaction is an opportunity to create value for Ørsted as we continue to develop the project.”
The acquisition of Sunrise Wind also strengthens Ørsted’s momentum in New York’s clean energy economy. Building on the success of South Fork Wind, the project contributes to the expansion of the local supply chain and workforce in the offshore wind energy sector. Ørsted expresses its gratitude to Eversource for their long-standing partnership and ongoing support.
Impact on the offshore wind market
This acquisition is part of a broader trend of consolidation and expansion of renewable energy projects by major players in the sector. Full ownership of Sunrise Wind enables Ørsted to maximize synergies and optimize project management, while contributing to New York’s ambitious energy transition goals. The offshore wind market continues to grow, and projects such as Sunrise Wind play a crucial role in this development.
Ørsted’s commitment to Sunrise Wind is also a strong signal to investors and stakeholders in the energy sector, demonstrating the viability and profitability of large-scale renewable energy projects. The conclusion of this transaction shows how financial adjustments based on accurate CAPEX valuations can positively influence the finalization of agreements in this dynamic field.
Reflecting on the future of offshore wind power
The success of Sunrise Wind could serve as a model for similar projects in the future, where collaboration between strategic partners and rigorous cost management play decisive roles. Ørsted’s experience in managing large-scale offshore wind projects could be used to optimize other projects under development, strengthening the company’s position as an industry leader.
Ørsted’s acquisition of Sunrise Wind marks a significant step in the expansion of offshore wind energy in the United States. This project not only represents a technical and financial breakthrough for Ørsted, but also an important step towards achieving New York’s energy transition goals. With projects like Sunrise Wind, the future of offshore wind power looks bright, both in terms of production capacity and sustainable development.
