US greenlights Orsted’s Sunrise Wind offshore wind farm to supply electricity for New York residences, Reuters reports

US greenlights Orsted’s Sunrise Wind offshore wind farm to supply electricity for New York residences, Reuters reports

(Reuters) – The Biden administration on Tuesday gave final approval to Orsted (CSE:) and Eversource’s Sunrise Wind offshore wind farm, which is expected to provide electricity to more than 320,000 homes in New York.

The announcement is the latest positive development for the project, which months ago warned Denmark’s Orsted that it could fail without a new contract covering soaring equipment and financing costs.

Orsted and Eversource separately said they have made a final investment decision on the project in conjunction with federal approval and will begin onshore construction.

Sunrise Wind is the seventh offshore wind project approved by President Joe Biden’s Interior Department, which aims to authorize 30 gigawatts of offshore wind capacity by 2030 as part of the president’s climate change agenda.

Sunrise Wind, which is expected to become the nation’s largest offshore wind project when completed in 2026, was awarded a conditional contract last month by New York state officials as part of a program intended to support the industry in difficulty.

In a statement, the Interior Ministry said the project would have a total capacity of 924 megawatts. It will create approximately 800 jobs during construction and 300 during operation.

Interior’s Bureau of Ocean Energy Management, responsible for permitting offshore wind installations, approved fewer wind turbines than the developer had proposed to reduce impacts on seabed habitats and Atlantic cod.

Sunrise Wind will be located approximately 16 nautical miles south of Martha’s Vineyard, Massachusetts, and 27 nautical miles east of Montauk, New York.

Orsted is negotiating the final terms of the project’s 25-year contract. The company plans to acquire Eversource’s 50% stake in Sunrise Wind, but the utility will lead onshore construction of the project.

Orsted suffered a financial hit to its US offshore wind portfolio last year and canceled development of two projects in New Jersey.



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