Ørsted has put into escrow $100 million to guarantee it will complete New Jersey’s first offshore wind project by December 2025.
If the 1.1-GW Ocean Wind 1 is not online by that date, Ørsted will forfeit the money. If the project fails to receive final state approvals to build and operate, Ørsted will get the money back. The New Jersey Board of Public Utilities approved the agreement last week.
“[The] action by the New Jersey Board of Public Utilities continues the process of complying with the statutory requirements outlined in legislation signed by Governor Phil Murphy in July,” said Ørsted in a statement.
Murphy signed a law in July that required the guarantee. According to the law, Ørsted was also allowed to retain federal tax credits for the wind farm. The developer had previously agreed to return the tax credits to consumers.
Ørsted has also earmarked an additional $200 million into a third-party escrow account to develop a facility at the port of Paulsboro for making wind turbine foundations, to be built by a subsidiary of Germany-based EEW Group. The developer was required to put the sum aside but will not forfeit the money if the project fails to be completed on time.