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, September 21, 2021--(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.
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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.
For further information, visit www.cip.dk
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Copenhagen Infrastructure Partners
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