An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
Avangrid Renewables and Copenhagen Infrastructure Partners Announce Strategic Transaction to Advance Offshore Wind Development
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Positive)
Tags
Rhea-AI Summary
Avangrid Renewables and Copenhagen Infrastructure Partners have announced a restructuring of their Vineyard Wind joint venture to enhance U.S. offshore wind development. The joint venture will continue to own Vineyard Wind 1, an 800 MW project set to supply energy to Massachusetts starting in 2023, while Avangrid will take ownership of lease area OCS-A 534, including Park City Wind and Commonwealth Wind. The restructuring is expected to streamline project development and includes a $167.5 million payment from Avangrid for full ownership of OCS-A 534.
Positive
Restructuring enables efficient development of future offshore wind projects.
Vineyard Wind 1, the first commercial offshore wind project, set to begin construction.
Avangrid to acquire significant lease areas enhancing its renewable energy portfolio.
Negative
Transaction requires consents from stakeholders, potentially delaying progress.
The parties’ will restructure their 50/50 joint venture which owns several U.S. offshore wind projects with a combined capacity of 5.3 GW for each party to focus on its further expansion within US offshore wind
Vineyard Wind 1 to remain a 50/50 joint venture between the parties
Lease Area OCS-A 534 containing Park City Wind and Commonwealth Wind to be owned by Avangrid Renewables; Lease Area OCS-A 522 to be owned by Copenhagen Infrastructure Partners
Restructuring will enable efficient development of future offshore wind projects
ORANGE, Conn. & COPENHAGEN, Denmark--(BUSINESS WIRE)--
Avangrid Renewables, a subsidiary of AVANGRID, Inc. (NYSE: AGR), and Copenhagen Infrastructure Partners (CIP), today announced a restructuring of their Vineyard Wind joint venture which will enable both companies to leverage their strengths and expertise to continue to grow the U.S. offshore wind industry.
Avangrid Renewables and Copenhagen Infrastructure Partners restructures joint venture with Vineyard Wind 1 remaining a 50/50 joint venture between the parties, Lease Area OCS-A 534 containing Park City Wind and Commonwealth Wind to be owned by Avangrid Renewables and Lease Area OCS-A 522 to be owned by Copenhagen Infrastructure Partners. (Graphic: Business Wire)
The Vineyard Wind joint venture, which pioneered offshore wind in the United States, has successfully built a portfolio that includes Vineyard Wind 1, the first commercial scale offshore wind project in U.S. waters. Vineyard Wind 1, an 800-megawatt (MW) project that will deliver clean energy to Massachusetts beginning in 2023, reached financial close last week and is beginning 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 an option to gain operational control once the project reaches commercial operation. Avangrid Renewables will take full ownership of lease area OCS-A 0534 which includes Park City Wind, an 804 MW project which will deliver clean energy to Connecticut, and Commonwealth Wind, which last week submitted a bid for up to 1,200 MW to the third Massachusetts offshore wind competitive solicitation.
Copenhagen Infrastructure Partners will take full ownership of lease area OCS-A 0522, the easternmost offshore wind area, which has the potential to deliver over 2,500 MW of clean energy into New England and New York.
“Along with Avangrid Renewables, we have during the previous week achieved the most important milestone for offshore wind in the U.S., and with our partner are excited to lead Vineyard Wind 1 through the construction phase and complete this trailblazing project,” said Christian T. Skakkebæk, Senior Partner in CIP. “Lease area 522 has the highest wind speed of any lease area in the northeast and will be a very competitive site for solicitations from New York to Massachusetts. Continuing to operate with our core leadership team and local staff in place, we can build on the strong relationships and early engagement with all stakeholders that has always been at the core of our development philosophy as we move forward.”
“We are proud of the extraordinary accomplishments achieved 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 opportunity and clean energy to New England. This restructuring is aligned with our long-term growth strategy and our aspiration to be the leading sustainable energy company in the U.S.”
Once the restructuring is finalized, Avangrid Renewables will make a net payment of $167.5 million in order 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 stakeholders and regulators, which include the Bureau of Ocean Energy Management (BOEM) as well as the Connecticut electric distribution companies. The transaction is expected to close in approximately six months during which the parties have agreed on a transition plan.
CIP is a first mover in the U.S. offshore wind industry, entering the market in 2016. CIP will, through its Copenhagen Infrastructure II K/S and Copenhagen Infrastructure III K/S, continue leading the offshore wind industry by co-leading the construction of the first commercial scale offshore wind project in the U.S., Vineyard Wind 1 of 800 MW. At the same time, CIP will, through its Copenhagen Infrastructure IV K/S, focus on developing OCS-A 522, highlighting CIP’s continued strong interest and presence in the U.S. offshore wind market.
Avangrid Renewables is a leading U.S. clean energy developer with a strong track record of owning and operating renewable energy assets with an experienced, U.S. based, offshore wind team. The company further benefits from the backing of Iberdrola, a major European offshore wind developer and an 81.5% shareholder of AVANGRID.
About AVANGRID: AVANGRID, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $39 billion in assets and operations in 24 U.S. states, AVANGRID has two primary 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 energy 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 was ranked number one within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2021 for the third consecutive year 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 energy-from-waste, transmission and distribution, reserve capacity and storage, and other energy assets like Power-to-X. CIP is one of the largest financial sponsors in offshore wind globally, and a first mover in the US offshore wind market. In the US, CIP has been involved in the development, construction and operations of more than 12 GW of renewable energy projects.
CIP manages eight funds and has approximately EUR 16 billion under management. PensionDanmark was founding and sole investor in CI I and CI A I. Today CIP’s funds have approximately 100 international institutional investors from the Nordics, Continental Europe, the UK, Israel, Asia, Australia, and North America and multi-lateral organizations e.g. EIB.
CIP was founded in 2012 by senior executives from the energy industry in cooperation with PensionDanmark. CIP has approximately 250 employees and offices in Copenhagen, Hamburg, New York, Tokyo, Utrecht, and London.
What are the details of the Avangrid and Copenhagen Infrastructure Partners joint venture restructuring?
The restructuring allows both companies to focus on their strengths in U.S. offshore wind, with Avangrid acquiring lease area OCS-A 534 for $167.5 million.
When will Vineyard Wind 1 begin supplying energy to Massachusetts?
Vineyard Wind 1, an 800 MW project, is expected to start delivering energy in 2023.
What is the capacity of the offshore wind projects involved in the restructuring?
The joint venture encompasses offshore wind projects with a combined capacity of 5.3 GW.
What are the implications of the joint venture restructuring for stock symbol AGR?
The restructuring positions Avangrid Renewables to expand its portfolio, potentially leading to increased investor confidence in AGR.
How much will Avangrid pay to acquire lease area OCS-A 534?
Avangrid will make a net payment of $167.5 million to acquire full ownership of lease area OCS-A 534.
