The parties will restructure their 50/50 joint venture which owns several US offshore wind projects with a combined capacity of 5.3 GW for each party to focus on its further expansion in US offshore wind.
Vineyard Wind 1 will remain a 50/50 joint venture between the parties
The OCS-A 534 rental area containing Park City Wind and Commonwealth Wind will be owned by Avangrid Renewables; OCS-A 522 rental area will be owned by Copenhagen Infrastructure Partners
Restructuring will allow efficient development of future offshore wind projects
ORANGE, Connecticut & COPENHAGEN, Denmark, September 21, 2021– (COMMERCIAL THREAD) – Avangrid Renewables, a subsidiary of AVANGRID, Inc. (NYSE: AGR), and Copenhagen Infrastructure Partners (CIP), today announced a restructuring of their joint venture Vineyard Wind that will allow the two companies to leverage their strengths and expertise to further develop the US offshore wind industry.
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Avangrid Renewables and Copenhagen Infrastructure Partners restructure joint venture with Vineyard Wind 1 remaining a 50/50 joint venture between the parties, rental area OCS-A 534 containing Park City Wind and Commonwealth Wind which will be owned by Avangrid Renewables and rental area OCS -A 522 will be owned by Copenhagen Infrastructure Partners. (Graphic: Business Wire)
The Vineyard Wind joint venture, a pioneer in offshore wind power in the United States, has successfully built a portfolio that includes Vineyard Wind 1, the first commercial-scale offshore wind project in US waters. Vineyard Wind 1, an 800 megawatt (MW) project that will provide clean power to Massachusetts from 2023, reached financial close last week and begins construction this month.
Vineyard Wind 1 will continue to be developed as a 50/50 joint venture between the partners and Avangrid Renewables will have the option to take operational control once the project reaches commercial operation. Avangrid Renewables will take full ownership of the OCS-A 0534 lease area which includes Park City Wind, an 804 MW project that will provide clean power to Connecticut, and Commonwealth Wind, which last week submitted a bid for up to 1,200 MW in the third Massachusetts. competitive offshore wind tender.
Copenhagen Infrastructure Partners will take full ownership of Lease Area OCS-A 0522, the easternmost offshore wind area, which has the potential to provide more than 2,500 MW of clean energy in New England and New England. York.
“With Avangrid Renewables, over the past week we have reached the most important milestone for offshore wind in the United States, and together with our partner, we are delighted to lead Vineyard Wind 1 through the phase of construction and complete this pioneering project, ”said Christian T. Skakkebæk, CIP Senior Associate. “Rental Area 522 has the highest wind speed of any rental area in the Northeast and will be a very competitive site for New York, Massachusetts loadings. By continuing to function with our core management team and existing local staff, we can build on the strong relationships and early engagement with all stakeholders that have always been at the core of our development philosophy as We move forward.”
“We are proud of the extraordinary achievements made in partnership with CIP, including the first commercial scale offshore wind farm in the United States,” said Dennis V. Arriola, CEO of AVANGRID. “We look forward to continuing our partnership with CIP for Vineyard Wind 1 as well as leading Park City Wind and Commonwealth Wind to deliver economic opportunities and clean energy to New England. This restructuring is aligned with our long-term growth strategy and our aspiration to be the premier sustainable energy company in the United States. “
Once the restructuring is complete, Avangrid Renewables will make a net payment of $ 167.5 million to acquire 100% of OCS-A 534 containing Park City Wind and Commonwealth Wind. In exchange, CIP will acquire 100% of OCS-A 522. The transaction is subject to consents from key players and regulators, including the Bureau of Ocean Energy Management (BOEM) and Connecticut power utilities. The transaction is expected to close in about six months during which the parties will agree on a transition plan.
CIP is a pioneer in the US offshore wind industry, entering the market in 2016. CIP, through its infrastructure Copenhagen II K / S and Copenhagen Infrastructure III K / S, will continue to lead the offshore wind industry by co-leading the construction of the first commercial scale offshore wind project in the United States, the 800 MW Vineyard Wind 1. At the same time, CIP, through its Copenhagen IV K / S infrastructure, will focus on the development of the OCS-A 522, highlighting the continued interest and presence of CIP in the US wind market. offshore.
Avangrid Renewables is a leading clean energy developer in the United States with extensive experience in owning and operating renewable energy assets with an experienced offshore wind team based in the United States. The company also benefits from the support of Iberdrola, a major European offshore wind developer and 81.5% shareholder of AVANGRID.
About AVANGRID: AVANGRID, Inc. (NYSE: AGR) aspires to become the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $ 39 billion in assets and operations in 24 US states, AVANGRID has two main lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable power generation facilities across the United States. AVANGRID employs approximately 7,000 people and has been recognized by Forbes and Just Capital as one of the 2021 JUST 100 companies – a list of America’s Best Corporate Citizens – and has been ranked number one in the utilities industry for its commitment to l environment and the communities it serves. The company supports the UN Sustainable Development Goals and was named one of the World’s Most Ethical Companies in 2021 for the third year in a row by the Ethisphere Institute. For more information visit www.avangrid.com.
About Copenhagen infrastructure partners: Copenhagen Infrastructure Partners P / S (CIP) is a fund management company focused on energy infrastructure including offshore wind, onshore wind, solar PV, biomass and waste power, transportation and distribution, reserve capacity and storage, and other energy assets such as Power-to-X. CIP is one of the largest financial sponsors of offshore wind in the world and a forerunner in the US offshore wind market. In the United States, CIP has been involved in the development, construction and operation of more than 12 GW of renewable energy projects.
CIP manages eight funds and manages around 16 billion euros. PensionDanmark was the founder and sole investor of CI I and CI A I. Today, CIP funds have around 100 international institutional investors from Nordic countries, Continental Europe, UK, Israel, Asia, Australia and North America and multilateral organizations such as the EIB.
CIP was founded in 2012 by senior executives from the energy sector in cooperation with PensionDanmark. CIP has around 250 employees and offices in Copenhagen, Hamburg, New York, Tokyo, Utrecht and London.
For more information visit www.cip.dk
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