The U.S. on March 26 said it has given final approval to the Sunrise Wind offshore project jointly developed by Ørsted and partner Eversource, marking a turn for a project once in danger of stalling due to economics.
Located offshore New York, the 924-megawatt (MW) project with up to 84 wind turbines is expected to provide enough energy to power approximately 320,000 homes. When complete in 2026, Sunrise Wind is expected to be the nation’s largest offshore wind project.
The approval by Bureau of Ocean Energy Management solidified Ørsted and Eversource’s commitment to the project, with both taking final investment decisions.
“New York is already home to the trailblazing South Fork Wind project, and with Sunrise Wind we’ll build on that foundation, broadening the economic benefits of offshore wind while delivering far more clean renewable power,” said David Hardy, executive vice president and CEO of Ørsted’s Americas region. “With the federal record of decision in hand and our final investment decision having been made, we can continue to create hundreds of local union jobs and stand up a vibrant supply chain.”
Word of the Sunrise Wind’s final approval came nearly one month after the project was named as one of the conditional winners of New York’s fourth offshore wind solicitation. The solicitation offered by the New York State Energy Research and Development Authority (NYSERDA) allowed companies to get out of their old contracts and enter new ones to lock in better prices. The opportunity was given after a failed attempt by Ørsted and other wind developers to renegotiate contracts.
Ørsted has said it plans to become the sole owner of Sunrise, acquiring Eversource’s 50% stake in the project, after signing the NYSERDA contract. Eversource will continue to lead onshore construction of the project, according to a news release.
The U.S. offshore wind industry faced challenging market conditions in the past year. Climbing interest rates, supply chain difficulties and inflation put projects, including Sunrise Wind, in jeopardy.
Recommended Reading
Seatrium Awarded Contract for FPSO Bound for Guyana’s Stabroek
2024-05-17 - The topsides fabrication and integration contract will be for the FPSO Jaguar, bound for the Whiptail Field in the Stabroek block offshore Guyana for Exxon Mobil.
Seadrill Sells Three Jackups for $338MM to Gulf Drilling International
2024-05-17 - Seadrill Ltd. is also selling its 50% equity interest in the joint venture that operates the rigs offshore Qatar.
Third Suriname Find for Petronas, Exxon Could Support 100,000 bbl/d FPSO
2024-05-17 - A recent find offshore Suriname in Block 52 by Petronas and Exxon Mobil could support a 100,000 bbl/d FPSO development, according to Wood Mackenzie.
US NatGas Flows to Freeport LNG in Texas Seen at Five-month High, LSEG Data Shows
2024-05-17 - The startup and shutdown of Freeport and other U.S. LNG export plants often has a major impact on global gas prices.
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks: Baker Hughes
2024-05-17 - The oil and gas rig count rose by one to 604 in the week to May 17.