Skyborn Renewables has become Ørsted’s joint venture partner on the South Fork Wind and Revolution Wind offshore wind farms in the US as Skyborn’s parent company, Global Infrastructure Partners (GIP), acquired Eversource Energy’s 50 per cent ownership share in the two projects.
Eversource initiated a strategic review of its offshore wind investment portfolio that involves its 50 per cent interest in the joint venture with Ørsted back in 2022.
In 2023, Ørsted acquired 50 per cent interest in an uncontracted offshore wind lease area the two companies jointly owned. Eversource said it was also looking to sell its stake in the three contracted offshore wind projects: South Fork Wind, Revolution Wind and Sunrise Wind.
At the beginning of this year, Eversource executed a definitive agreement to sell its 50 per cent stake in South Fork Wind and Revolution Wind to GIP and in July, Ørsted acquired its now former partner’s stake in Sunrise Wind .
In February, Eversource valued the transaction at USD 1.1 billion (approximately EUR 989 million). However, announcing the completion of the sale to GIP on 30 September, the US company said adjusted gross proceeds from the transaction were USD 745 million (approx. EUR 670 million) .
The reduced purchase price is due to lower capital spending between announcing the transaction and closing, and the final terms of the sale transaction, primarily the delay of the commercial operations date of Revolution Wind.
With the completion of this sale, Eversource has now divested all its ownership interests in the offshore wind business but the company remains a contractor on the ongoing onshore construction scope for Revolution Wind and a tax equity investor in South Fork Wind.
South Fork Wind is located some 30 kilometres southeast of Block Island and some 56 kilometres east of Montauk Point and comprises twelve Siemens Gamesa 11 MW wind turbines. The offshore wind farm delivered its first power to New York’s power grid in December 2023 and went fully online in March 2024.
The Revolution Wind project site, located off the Connecticut coast, is adjacent to South Fork Wind and will have 65 Siemens Gamesa turbines, the same 11 MW turbine model used at South Fork Wind.
The 704 MW offshore wind farm is currently under construction with the first turbine now installed.