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A stock photo of a vessel servicing an offshore wind farm at sunset

A stock photo of a vessel servicing an offshore wind farm at sunset. Photo: Eddytb Foto/Shutterstock

Eversource to Sell Stakes U.S. Offshore Wind Projects for $1.1 Billion

Mike Schuler
Total Views: 1880
February 14, 2024

Eversource Energy has announced a definitive agreement to sell its 50 percent ownership stake in two offshore wind projects off the U.S. Northeast to Global Infrastructure Partners (GIP).

The deal is expected to yield about $1.1 billion in cash for Eversource upon closing and will allow the company to withdraw from the South Fork Wind and Revolution Wind wind projects, which it jointly owns with offshore wind developer Ørsted, while retaining certain cost-sharing obligations for Revolution Wind’s construction.

Under the agreement, Eversource and GIP will share the burden of up to roughly $240 million of additional capital expenditure overruns. Any further costs will fall to Eversource according to the existing joint venture terms.

The deal encompasses Eversource’s 50 percent stake in the 132-megawatt South Fork Wind project, located 35 miles east of Montauk Point, and the 704-megawatt Revolution Wind project, located off Rhode Island. The sale is not expected to affect Ørsted’s 50 percent ownership interests in the projects. Eversource will also enter into a separate construction management agreement to complete the ongoing onshore work for Revolution Wind while maintaining its previously announced tax equity investment in South Fork Wind.

Eversource had previously announced in 2024 that it agreed to sell its 50 percent interest in the 924-megawatt Sunrise Wind project to Ørsted, subject to certain conditions.

Joe Nolan, Eversource Energy Chairman, President, and Chief Executive Officer, reiterated the company’s commitment to offshore wind as a major opportunity for decarbonizing New England’s electricity generation.

“Eversource will remain an integral player in this historic shift to a clean energy generation mix by focusing on our strengths as a regulated transmission builder and operator and bringing the benefits of these investments to our customers,” said Nolan.

Commenting on the acquisition, Bayo Ogunlesi, Global Infrastructure Partners’ Chairman and Chief Executive Officer, stated that the deal marks their fourth strategic joint venture with Ørsted and plays a significant role in meeting the growing demand for clean electricity.

“Global Infrastructure Partners is a longstanding global Ørsted partner that is committed to renewable energy development, and we’re pleased the U.S. industry continues to attract world-class investors,” said David Hardy, Group EVP and CEO Americas at Ørsted. “With GIP as a partner, we will further realize the value of offshore wind in Rhode Island, Connecticut, and New York, creating good-paying jobs and affordable clean energy.”

The sale to GIP is expected to close in mid-2024, subject to regulatory approvals from the Federal Energy Regulatory Commission, New York Public Service Commission, and customary antitrust filings.

Around the time of Revolution Wind’s commercial operation, expected in 2025, and South Fork Wind’s closing, Eversource’s financial exposure will be adjusted. South Fork Wind is projected to enter service prior to closing the deal, thereby mostly resolving Eversource’s financial connection to the project, except as a tax equity partner.

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