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Feb 8, 2019 2:45 PMPublication: The Southampton Press

Connecticut Energy Company Buys Half Of South Fork Wind Farm And Other Deepwater Wind Assets

Feb 12, 2019 3:21 PM

New England’s largest energy company, Connecticut-based Eversource Energy, has purchased a 50 percent stake in the bulk of Deepwater Wind’s offshore wind farm development potential in the waters south of Cape Cod—including the proposed South Fork Wind Farm off Montauk.

The energy company, which provides gas and electric service to 4 million New England households, paid $225 million for the rights to half of the wind farm and the much larger Revolution Wind, Deepwater’s planned 80-turbine, 700-megawatt wind farm that will feed power to Connecticut and Rhode Island.

Eversource also will become partners in the rest of Deepwater’s 257-square-mile federal lease area, which could eventually host hundreds of additional turbines feeding power to New England’s power grid.

Eversource was already partners with Ørsted US Offshore Wind, a subsidiary of the Danish wind energy giant Ørsted, in Bay State Wind, a 300-square-mile wind lease area adjacent to the Deepwater lease area.

Ørsted purchased Deepwater in October for $510 million. The takeover of Deepwater, which was founded and based in Rhode Island, by the foreign company was cited recently by State Assemblyman Fred W. Thiele Jr. as one of the reasons he was withdrawing his support for the wind farm.

In a statement on Friday morning, Deepwater representatives said the combined partnership now has the potential to eventually provide up to 4,000 megawatts from its offshore developments south of New England.

“We are excited to have Eversource join us as we embark on the creation of the strongest U.S. offshore wind platform,” said Thomas Brostrøm, the CEO of Ørsted U.S. Offshore Wind. “With their expansive knowledge of the energy market throughout the region, and by building on both companies’ community outreach programs, we are on track to ensure that the Northeast will be the North American hub for offshore wind energy.”

The company also emphasized that the new partnership would not affect the development plans for the South Fork Wind Farm. The company has a contract with the Long Island Power Authority to sell the power from the 15 turbines that will be built in the corner of Deepwater’s lease area that is closest to Long Island—about 30 nautical miles southeast of Montauk—for at least 20 years.

The wind farm is expected to be the first utility-scale offshore wind farm in the United States, with an anticipated completion date of 2022, although it will quickly be followed by a gaggle of larger projects already in the review pipeline up and down the East Coast.

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So far, this windfarm has made quite a bit of money...

Buying and selling the project. Why do I feel like this is a ponzi scheme?
By Draggerman (955), Southampton on Feb 9, 19 12:51 PM