Denmark-based Orsted is expanding its presence in the United States with two large wind energy transactions announced in the last two months. Photo by Orsted
Nov. 8 (UPI) -- Orsted, the largest energy company in Denmark, which aims to become a global leader in offshore wind energy, has closed two transactions within the past four months as part of an expansion effort in the United States.
Orsted closed the $510-million purchase of Deepwater Wind, and created Orsted US Offshore Wind, a company that will deliver clean energy to every state "in the densely-populated East Coast between Massachusetts and Virginia," the company said late Wednesday.
"The new company launches as the clear leader in the U.S., with the most comprehensive geographic coverage and the largest pipeline of development capacity," Orsted said. Deepwater assets include the 30MW Block Island, the only operational offshore wind farm in the U.S.
The announcement comes after the company reported in August that it had entered into an agreement to buy a 100 percent equity interest in onshore wind producer Lincoln Clean Energy, valued at $580 million. While Orsted's focus is offshore generation, diversification is also important, the company said.
Lincoln has over 1.8 GW of renewable projects in California, New Jersey and Texas, and as of 2017 was the largest non-utility wind developer in the United States, Orsted said. Orsted, a company focused on offshore generation, planned to allow the onshore generation Lincoln Clean Energy to run as a separate unit once the purchase is concluded before year's end.
Total potential capacity of Deepwater of approximately 3.3 GW consists of 30 MW in operation, 810 of offshore wind projects with long-term revenue contracts in place and 2.5 GW that could potentially be developed in three awarded lease areas.
Orsted's other U.S. offshore wind development portfolio represents a 5.5GW capacity and includes development rights for 2 GW off the coast of Massachusetts in a joint venture with Eversource, and rights to 3.5 GW offshore New Jersey.
The Danish company said it will also build two 6 MW wind turbine positions for Dominion Energy's Coastal Virginia Offshore Wind Project.
Orsted used to be a coal generator consumer but a decade ago started a strategic plan to fully phase out coal consumption by 2023. So far it has reduced coal consumption by 73 percent.
The company claims 25 percent of global offshore wind production.
"We've built more offshore wind farms than any other developer in the world and we've only just begun. By 2020, we will expand our offshore wind capacity to 7.45GW, and will have offshore wind farms across Europe, in Denmark, Germany, the UK and The Netherlands," it said.
Orsted currently supplies power to 9.5 million people worldwide.
"Our ambition is to raise this number to 30 million by 2025," company officials said.
