Ørsted expands US wind foothold with $510mn investment
Danish energy company Ørsted has announced an agreement with a US based wind developer.
is purchasing 100% equity interest in DE Shaw Group’s offshore wind developer business, Deepwater Wind. The company has stated the deal was worth a total of $510mn.
Deepwater Wind currently owns the 30MW Block Island offshore wind facility, and its total portfolio has a 3.3GW potential capacity, with offshore wind development projects in Rhode Island, Connecticut, Maryland and New York.
Meanwhile, Ørsted has a total offshore wind portfolio in the US amounting to 5.5GW capacity. Its expansion of this portfolio has been reported as a sign of how attractive the US is becoming for offshore wind, as well as cementing Ørsted’s international foothold which now spans Europe, North America and Asia Pacific.
Martin Neubert, Chief Executive for offshore wind at Ørsted, said of the project: “With this transaction we’re creating the number one offshore wind platform in North America, merging the best of two worlds: Deepwater Wind’s longstanding expertise in originating, developing and permitting offshore wind projects in the US, and Ørsted’s unparalleled track-record in engineering, constructing and operating large-scale offshore wind farms.”
Bryan R Martin, Managing Director at DE Shaw & Co, added: “I’m excited to see what the largest and most innovative offshore wind company in the US can do when it’s merged with the largest and most successful offshore wind company in the world.”
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.