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Released March 15, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Danish renewable energy company Ørsted A/S (Fredericia) is having a big week in the U.S. After announcing the sale of a stake in U.S. land-based windfarms representing more than 950 megawatts (MW) of capacity, the company also disclosed that construction of the South Fork offshore windfarm off the coast of Long Island has been completed.
Offshore Completion
The larger story relates to Ørsted's recently announced milestone in the nascent U.S. offshore wind sector. The company's South Fork Windfarm has become the first operational commercial-scale offshore windfarm in the U.S. While the milestone is something to be celebrated, the facility is much smaller than other planned U.S. offshore wind projects, consisting of 12 turbines that will generate a combined 132 MW of power. Ørsted installed the first turbine monopile in June last year and had all of the monopiles installed by August. Power from the first turbine reached the grid in December.
Now, all 12 of the 11-MW turbines are installed and generating power, and the project is in its final stage of commissioning. New York Governor Gretchen Hochul (D) said in a press release, "...South Fork Wind is now delivering clean energy to tens of thousands of homes and businesses on Long Island. With more projects in the pipeline, this is just the beginning of New York's offshore wind future and I look forward to continued partnership with the Biden Administration and local leaders to build a clean and resilient energy grid."
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for more information on the project.
Onshore Wind Divestment
News of South Fork's completion came quickly on the heels of another Ørsted announcement, this one regarding the divestment of stakes in four U.S. onshore windfarms with a combined generating capacity of 957 MW.
The windfarms involved in the transaction included:
The windfarm stakes will be bought by alternative investment firm Stonepeak (New York, New York) for $300 million. Ørsted had previously raised approximately $700 million in tax equity proceeds for the portfolio, bringing total proceeds from the facilities to about $1 billion. Ørsted will continue to operate the windfarms.
In a press release, Ørsted said, "[T]he transaction broadly corresponds to Ørsted's historical farm-down approach, in which ownership shares of existing operating assets are divested in order to recycle and redeploy capital for future value-creating projects."
Future Projects
And Ørsted has plenty of options for future investment in U.S. projects. While the company has a remaining offshore project in the form of the Revolution Windfarm (see project report), many of the company's onshore facilities are already under construction or are approaching their kickoff dates.
Expected to begin this year is construction on Ørsted's Armadillo solar farm near Corsicana, Texas. Construction could begin in the fourth quarter, putting the facility on track for completion by the end of 2025, when 600,000 monocrystalline solar panels will provide up to 200 MW of power. Subscribers can learn more by viewing the project report.
Wind projects with a future start date include Ørsted's Antelope Flats Windfarm near Post, Texas. Existing plans call for the installation of 74 turbines, each rated at 3.4 MW, to provide total generation of more than 250 MW. Construction could begin early next year, putting the windfarm on track for a possible completion by the end of 2025 or early 2026. Subscribers can click here to learn more about the project.
Subscribers to Industrial Info's GMI Power Database can click here to view reports for all of the projects discussed in this article and click here to see the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Offshore Completion
The larger story relates to Ørsted's recently announced milestone in the nascent U.S. offshore wind sector. The company's South Fork Windfarm has become the first operational commercial-scale offshore windfarm in the U.S. While the milestone is something to be celebrated, the facility is much smaller than other planned U.S. offshore wind projects, consisting of 12 turbines that will generate a combined 132 MW of power. Ørsted installed the first turbine monopile in June last year and had all of the monopiles installed by August. Power from the first turbine reached the grid in December.
Now, all 12 of the 11-MW turbines are installed and generating power, and the project is in its final stage of commissioning. New York Governor Gretchen Hochul (D) said in a press release, "...South Fork Wind is now delivering clean energy to tens of thousands of homes and businesses on Long Island. With more projects in the pipeline, this is just the beginning of New York's offshore wind future and I look forward to continued partnership with the Biden Administration and local leaders to build a clean and resilient energy grid."
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for more information on the project.
Onshore Wind Divestment
News of South Fork's completion came quickly on the heels of another Ørsted announcement, this one regarding the divestment of stakes in four U.S. onshore windfarms with a combined generating capacity of 957 MW.
The windfarms involved in the transaction included:
- the Helena wind project near Beeville, Texas
- the Western Trail Windfarm near Vernon, Texas
- the Sunflower Windfarm near Peabody, Kansas
- the Ford Ridge wind project in Ford County, Illinois
The windfarm stakes will be bought by alternative investment firm Stonepeak (New York, New York) for $300 million. Ørsted had previously raised approximately $700 million in tax equity proceeds for the portfolio, bringing total proceeds from the facilities to about $1 billion. Ørsted will continue to operate the windfarms.
In a press release, Ørsted said, "[T]he transaction broadly corresponds to Ørsted's historical farm-down approach, in which ownership shares of existing operating assets are divested in order to recycle and redeploy capital for future value-creating projects."
Future Projects
And Ørsted has plenty of options for future investment in U.S. projects. While the company has a remaining offshore project in the form of the Revolution Windfarm (see project report), many of the company's onshore facilities are already under construction or are approaching their kickoff dates.
Expected to begin this year is construction on Ørsted's Armadillo solar farm near Corsicana, Texas. Construction could begin in the fourth quarter, putting the facility on track for completion by the end of 2025, when 600,000 monocrystalline solar panels will provide up to 200 MW of power. Subscribers can learn more by viewing the project report.
Wind projects with a future start date include Ørsted's Antelope Flats Windfarm near Post, Texas. Existing plans call for the installation of 74 turbines, each rated at 3.4 MW, to provide total generation of more than 250 MW. Construction could begin early next year, putting the windfarm on track for a possible completion by the end of 2025 or early 2026. Subscribers can click here to learn more about the project.
Subscribers to Industrial Info's GMI Power Database can click here to view reports for all of the projects discussed in this article and click here to see the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
