Ocean Wind 1

DONG Energy (now Ørsted) "has agreed to take over RES Americas Developments Inc.'s (RES) more than 1000MW newly assigned development project rights off the coast of New Jersey" — BOEM lease OCS-A 0498, which RES had won at the November 2015 New Jersey lease sale; "Following approval from BOEM, the lease will be taken over by DONG Energy" (DONG release, 9 Feb 2016). DONG's completion release (Business Wire, 19 May 2016, s2 — URL-only, the wire blocks the fetcher) names the project Ocean Wind and dates the legal takeover to May 2016. Price undisclosed.

Ørsted North America divested a 25% equity interest in Ocean Wind 1 (1,100 MW, OCS-A 0498, off the coast of southern New Jersey) to PSEG (Public Service Enterprise Group), New Jersey's largest electric utility. The deal was announced December 4, 2020. PSEG completed the acquisition on March 31, 2021, following approval from the New Jersey Board of Public Utilities. The transaction value was not publicly disclosed by either party. Ocean Wind 1 was awarded the first New Jersey OREC (offshore renewable energy certificate) contract in June 2019 under the NJ BPU offshore wind programme. PSEG's 25% stake was structured as a non-operating interest with Ørsted retaining operatorship. At deal close, the project had a Site Assessment Plan approved by BOEM and was progressing toward a Construction and Operations Plan. Post-transaction: Ørsted 75%, PSEG 25%.

PSEG agreed to sell its 25% equity stake in Ocean Wind 1 back to Ørsted North America, announced January 18, 2023. The transaction closed May 31, 2023. Ørsted reimbursed PSEG for all cumulative outlays/capital invested in the project; the purchase price was not publicly disclosed. PSEG cited the need to avoid further capital exposure to the project as rising costs, supply chain challenges, and increasing US interest rates deteriorated Ocean Wind 1's economics. Ørsted took 100% ownership of Ocean Wind 1, giving it full control ahead of anticipated final investment decisions. The project's BOEM COP received federal approval July 2023. However, Ørsted subsequently cancelled Ocean Wind 1 and Ocean Wind 2 in October 2023 (see cancellation record below). Post-transaction: Ørsted 100% — for a period of only ~5 months before cancellation.

Ørsted announced the cancellation of Ocean Wind 1 and Ocean Wind 2 on October 31, 2023, in its Q3 2023 interim financial results. This was not an equity transaction but is recorded here as the terminal event for Ocean Wind 1. The total impairments recognised in the Q3 2023 results amounted to DKK 28.4 billion (~USD 4 billion / EUR 3.7 billion), with approximately DKK 19.9 billion (~USD 2.8 billion / EUR 2.6 billion) attributable to Ocean Wind 1 specifically. An additional provision of DKK 8-11 billion for potential contract cancellation fees was recorded, bringing total US portfolio exposure to approximately USD 5.6 billion. Reasons given: supplier delays, updated tax credit monetisation assumptions, timing/likelihood of construction permits, and sharply higher US interest rates. The New Jersey BPU formally vacated the Ocean Wind 1 project approvals. Ørsted subsequently settled with the State of New Jersey for USD 125 million in July 2024 to cover both Ocean Wind 1 and Ocean Wind 2 cancellation obligations. BOEM lease OCS-A 0498 returned to the US government. Cancellation type recorded as 'divestment' (asset disposition) — no buyer; this is a project termination event.