PROVIDENCE, R.I: Deepwater Wind, the Offshore wind power company is being purchased by Orsted, based in Fredricka, Denmark the world’s largest offshore wind developer. Orsted has agreed to pay $510 million to buy Rhode Island-based Deepwater Wind. Deppwater Wind constructed a three turbine wind farm off Block Island two years, ago, the first offshore wind plant in the US. Deepwater is currently owned by the global investment firm, D.E. Shaw.
In June the state of Connecticut awarded Deepwater Wind a purchase agreement of 200 Megawatts for what it calls the Revolution Wind Project (Deepwater Wind). This will be incremental to the 400 MW from the same project selected by Rhode Island.
Orsted has partnered with Eversource to build Bay State Wind, a 1200 Megawatt project off Martha’s Vineyard. The Orsted, Eversource bid was not chosen in the first selection by the Commonwealth and an 800 megawatt project was awarded to Vineyard Wind a partnership of another Danish company Copenhagen Investment Partners and Avantgrid, parent of United Illuminating and the largest wind power company currently operating in the US. Massachusetts is requiring that its utilities purchase 2,400 megawatts of offshore electicity.
The company says that Deepwater will remain in Providence and will Deepwater CEO Jeffrey Grybowski will be “co-CEO" of the new company with Thomas Brostrom, who runs Orsted’s U.S. operations based in Boston.
While the Bay State Wind project missed the first cut at the Massachusetts power purchases it remains well positioned for the next round and the Deepwater acquisition and its Rhode Island and Connecticut deals likely strengthens its hand in the region. With its acquisition of Deepwater Wind, Orsted U.S. Offshore Wind will have more than 8,000 megawatts in development in Massachusetts, Rhode Island, New Jersey, Delaware and Virginia.
Deepwater Wind after a sharp battle with opponent of a solar project in the town of Simsbury recently signed an agreement with the town to modify the project.
The town challenged the Connecticut Siting Council’s approval of Deepwater Wind’s project on 156 acres of farmland in placing 110,000 solar panels, potentially generating 26 megawatts. The plan is to clear-cut 33 acres of woodland for placement of the panels. The town in early September signed an agreement with the company modifying some aspects of the project including further setbacks from homes.