Ørsted awarded 1,148 MW offshore wind contract in New Jersey, fully utilizing its Ocean Wind lease area
The New Jersey Board of Public Utilities (BPU) has issued an order awarding Ocean Wind 2 a 20-year OREC (Offshore Renewable Energy Certificate) for its proposed offshore wind farm with a capacity of 1,148 MW. With today’s award, the Ocean Wind lease will be utilized to its maximum capacity of approx 2.3 GW. The 2029 OREC price is USD 84.03 per MWh with a 2% annual escalator.
Ocean Wind 2 is being developed by Ørsted, the world leader in offshore wind development. Ocean Wind 2 will be located adjacent to Ocean Wind (“Ocean Wind 1”), the company’s first New Jersey project which was awarded an 1,100 MW OREC order by the BPU in June 2019. Ocean Wind 1 is being developed by Ørsted in partnership with Public Service Enterprise Group (PSEG) who owns 25% equity in the project.
As part of its winning proposal, Ocean Wind 2 will deliver several landmark investments that will generate over USD 4.8 billion net benefit for New Jersey and bring the offshore wind supply chain to New Jersey and to the US.
With Ocean Wind 2, Ørsted is bringing a commitment from leading industry partner GE Renewables (GE) to locate what will be one of the country’s first offshore wind nacelle assembly facility in New Jersey. This facility will assemble the nacelles for Ocean Wind 2 and other offshore wind projects in the US.
In addition, Ocean Wind 2 will contribute to expanding the Paulsboro monopile foundation facility, which was announced as part of the Ocean Wind 1 project, to a full-scope manufacturing facility. The full-fledged Paulsboro facility, owned by EEW, will represent the single largest investment in the US offshore wind supply chain to date and will bring to New Jersey the full manufacture of primary steel monopiles, including bending, rolling, sand blasting, welding, and painting. With a USD 250 million investment and expected to create nearly 500 long-term jobs, this facility will become a cornerstone of the US offshore wind energy supply chain.
With this announcement, Ørsted has been awarded a total of over 4 GW offshore wind projects in the US, more than any other developer, which unlocks significant synergies in procurement, construction, and operations.
About Ørsted
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, and bioenergy plants, and provides energy products to its customers. Ørsted ranks as the world’s most sustainable energy company in Corporate Knights' 2021 index of the Global 100 most sustainable corporations in the world and is recognised on the CDP Climate Change A List as a global leader on climate action. Headquartered in Denmark, Ørsted employs 6,311 people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2020, the group's revenue was DKK 52.6 billion (EUR 7.1 billion).