DONG Energy has completed two agreements this week that serve to solidify the Danish wind energy giants’ position as the leading global offshore wind developer.
DONG Energy Takes Over 1,000 MW New Jersey Lease
On Tuesday, DONG Energy announced that it had agreed to take over RES Americas Development Inc’s more than 1,000 MW newly assigned development project rights, located off the coast of New Jersey, USA. RES Americas acquired the rights in an offshore auction held by the US Department of Interior’s Bureau of Ocean Energy Management (BOEM) on November 9, 2015 — a lease which encompasses an area that could potentially accommodate up to 1,000 MW of offshore wind.
DONG Energy’s decision to take over the lease falls under an existing agreement made by the two companies back in 2014 to cooperate on developing offshore wind projects in New Jersey and Massachusetts.
“The US is an interesting market for offshore wind with the potential to become a significant area for future development,” said Samuel Leupold, Executive Vice President of Wind Power. “With the transfer of the offshore wind development projects in the US, we are broadening our international scope. The site conditions are quite similar to those we currently work with in North-Western Europe which means that the project could be developed using well-known technology.”
RES Americas will continue to support the development of the lease area, providing project development services.
“We are excited to be continuing our close relationship with DONG Energy through this major project as they increase their participation in the US market,” added Glen Davis, CEO of RES Americas. “Leveraging our development expertise, along with DONG Energy’s experience in offshore wind, we look forward to helping the BOEM with their goal to create jobs, develop clean energy resources, and reduce carbon emissions.”
DONG Energy Divests 50% Of Burbo Bank Wind Farm
A day later, DONG Energy announced that it had signed and completed an agreement to divest 50% of the 258 MW Burbo Bank Extension offshore wind farm in UK waters to Danish pension provider PKA and KIRKBI A/S, parent company of the LEGO Group.
DONG Energy announced that it would construct the 258 MW Burbo Bank Extension alongside the original 90 MW Burbo Bank Offshore Wind Farm towards the end of 2014. Construction is expected to commence this spring, and to be fully commissioned in the first half of 2017.
Joining DONG Energy will now be PKA and KIRKBI A/S, who will pay £660 million, or DKK 6.6 billion, over the period of 2016-2017. DONG Energy will remain to provide operation and maintenance service to the project under a long-term O&M agreement, and will also be responsible for the sale and delivery to the market of the whole.
“I am delighted to welcome the LEGO Group and PKA to a new partnership with DONG Energy,” said Henrik Poulsen. “Both of them are already trusted partners in other DONG Energy offshore wind projects and we are proud to be able to build on these existing, successful partnerships. Our partners’ commitment to the green transition is well known, and I am pleased that they continue to find our market-leading partnership model attractive.”
”I am proud to announce our investment in the Burbo Bank Extension together with our partners DONG Energy and PKA,” added Jørgen Vig Knudstorp, President and Chief Executive Officer of the LEGO Group (PDF). “This investment is another substantial step for the LEGO Group towards balancing our global energy consumption with renewable energy capacity. Our goal is to fulfil this by 2020 and beyond as we want to make a positive impact on the planet our children will inherit – primarily by providing great play experiences that inspire and develop children, but also through our commitment to the environment.”