US utility Eversource Energy (NYSE:ES) has closed the USD-625-million (EUR 583m) sale of an uncommitted federal lease area off the coast of Massachusetts to its joint venture partner Ørsted A/S (CPH:ORSTED).
The all-cash deal provides the Danish group with the full rights to some 175,000 acres (70,820 ha) of seabed areas located 25 miles (40.2 km) off the southern coast of Massachusetts. The acreage in Southern New England has the potential to accommodate up to 4 GW of offshore turbine capacity to serve Massachusetts, Rhode Island, Connecticut, and New York.
Eversource said that, meanwhile, it is progressing with the sale of its 50% stake in the three projects proposed to be built within the abovementioned site – the 132-MW South Fork Wind and 920-MW Sunrise Wind off New York, and the 704-MW Revolution Wind in the waters between Connecticut and Rhode Island. The utility expects to announce details of this transaction “soon.”
As previously agreed, Eversource will provide tax equity for South Fork Wind of around USD 545 million and will continue to be a managing member of the project along with Ørsted. The funding commitment will be covered with a portion of the proceeds from the lease area sale, with the deal seen to be completed in the current quarter.
South Fork Wind is currently under construction and is due to be commissioned late this year.
(USD 1.0 = EUR 0.933)