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Researched by Industrial Info Resources (Sugar Land, Texas)--Citing high federal offshore lease prices, Eversource Energy (NYSE:ES) (Boston, Massachusetts) is considering the potential sale of its 50% stake in a joint venture with Ørsted (Gentofte, Denmark), which is developing offshore wind-energy projects in the northeast U.S.
Eversource, New England's largest energy company and transmission builder, could sell all or part of its interest in the joint venture, which was launched in 2019, the company announced last week in its first-quarter earnings release. Eversource expects to complete the review during 2022. The joint venture also includes 175,000 acres of open lease area, 25 miles off the Massachusetts South Coast.
"In light of the record-setting prices in the recent federal lease auction for tracts around the New York Bight and an evolving landscape, we are conducting a fulsome review of our interest in the joint venture," said Joe Nolan, the chief executive officer of Eversource. "Eversource remains committed to supporting offshore wind with advocacy, transmission investment solutions and clean energy resource integration."
In late February, the U.S. Bureau of Ocean Management (BOEM) auctioned off six lease areas in the New York Bight--an area of ocean off the coasts of New York and New Jersey--for a record total lease sale of $4.37 billion. The highest bid ($1.1 billion) belonged to Bight Wind Holdings LLC, a joint venture between RWE Renewables (Essen, Germany) and National Grid Plc (NYSE:NGG) (London, England).
Eversource reported first-quarter 2022 earnings of $443.4 million, up from $366.1 million in first-quarter 2021, with increased year-over-year earnings in its electric transmission and distribution, natural gas distribution and water distribution segments.
Through the joint venture, Eversource and Ørsted own three contracted windfarm projects in the Northeast region:
According to the latest earnings-related release, Eversource expects proceeds from a sale would be used "to support Eversource's regulated investments in strengthening, modernizing and decarbonizing its regulated energy and water delivery systems." It added, "In February 2022, Eversource identified more than $18 billion of regulated investments it plans to make in its systems from 2022 through 2026."
Industrial Info is tracking $1.9 billion worth of projects attributed to Eversource, including $800 million worth of wind-energy projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for a full list of detailed project reports.
The company is at work on a four-year, $200 million modernization of its liquefied natural gas (LNG) plant in Hopkinton, Massachusetts, which entered service in the late 1960s. The project entails adding new equipment to the plant, including an LNG peak shaver, which stores LNG so that it can be deployed during peak demand spikes. Completion is expected in December. Subscribers can click here for the project report.
Ørsted and its subsidiaries worldwide are responsible for $19.24 billion worth of projects that have a high and medium (70-99%) probability of moving forward as planned, including $7.3 billion in the U.S. Subscribers can click here for a full list.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Eversource, New England's largest energy company and transmission builder, could sell all or part of its interest in the joint venture, which was launched in 2019, the company announced last week in its first-quarter earnings release. Eversource expects to complete the review during 2022. The joint venture also includes 175,000 acres of open lease area, 25 miles off the Massachusetts South Coast.
"In light of the record-setting prices in the recent federal lease auction for tracts around the New York Bight and an evolving landscape, we are conducting a fulsome review of our interest in the joint venture," said Joe Nolan, the chief executive officer of Eversource. "Eversource remains committed to supporting offshore wind with advocacy, transmission investment solutions and clean energy resource integration."
In late February, the U.S. Bureau of Ocean Management (BOEM) auctioned off six lease areas in the New York Bight--an area of ocean off the coasts of New York and New Jersey--for a record total lease sale of $4.37 billion. The highest bid ($1.1 billion) belonged to Bight Wind Holdings LLC, a joint venture between RWE Renewables (Essen, Germany) and National Grid Plc (NYSE:NGG) (London, England).
Eversource reported first-quarter 2022 earnings of $443.4 million, up from $366.1 million in first-quarter 2021, with increased year-over-year earnings in its electric transmission and distribution, natural gas distribution and water distribution segments.
Through the joint venture, Eversource and Ørsted own three contracted windfarm projects in the Northeast region:
- South Fork Windfarm, near Montauk Point, New York, which would generate 130 megawatts (MW) for households in eastern Long Island under a power-purchase agreement with the Long Island Power Authority. Construction is underway, and the project is expected to be placed into service in late 2023. Subscribers can see the detailed project report.
- Revolution Windfarm, near Providence, Rhode Island, which would generate about 700 MW under long-term contracts to Rhode Island (400 MW) and Connecticut (300 MW). The in-service start date is expected in 2025. Click here for a list of related projects.
- Sunrise Windfarm, near Montauk Point, New York, which would provide more than 900 MW to New York State. Commissioning is expected in late 2025. Click here for a list of related projects.
According to the latest earnings-related release, Eversource expects proceeds from a sale would be used "to support Eversource's regulated investments in strengthening, modernizing and decarbonizing its regulated energy and water delivery systems." It added, "In February 2022, Eversource identified more than $18 billion of regulated investments it plans to make in its systems from 2022 through 2026."
Industrial Info is tracking $1.9 billion worth of projects attributed to Eversource, including $800 million worth of wind-energy projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for a full list of detailed project reports.
The company is at work on a four-year, $200 million modernization of its liquefied natural gas (LNG) plant in Hopkinton, Massachusetts, which entered service in the late 1960s. The project entails adding new equipment to the plant, including an LNG peak shaver, which stores LNG so that it can be deployed during peak demand spikes. Completion is expected in December. Subscribers can click here for the project report.
Ørsted and its subsidiaries worldwide are responsible for $19.24 billion worth of projects that have a high and medium (70-99%) probability of moving forward as planned, including $7.3 billion in the U.S. Subscribers can click here for a full list.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
