RES to transfer New Jersey offshore wind power lease to DONG Energy

offshore wind england elp

RES America Developments, a unit of Renewable Energy Systems Americas Inc., has reached an agreement to transfer a U.S. offshore wind development lease off the coast of New Jersey to DONG Energy.

On November 9, 2015, the Bureau of Ocean Energy Management held a commercial auction for two offshore wind power leases on the Outer Continental Shelf off the coast of New Jersey with a capacity of about 2,000 MW.

RES, with more than 16 years of European offshore wind experience through its parent company, participated in the auction and secured the lease for Area OCS-A 0498 (South Area), an area which could accommodate more than 1,000 MW to be built after 2020. RES has applied to the BOEM to transfer its rights to this area to DONG Energy.

In 2014, RES and DONG Energy agreed to cooperate on offshore wind projects in New Jersey (and Massachusetts). Under that agreement, and subject to the approval of the BOEM, DONG Energy will take over the lease and RES will provide support through project development services. In 2015 RES struck a similar agreement transferring to DONG Energy its Massachusetts OCS Lease.

Glen Davis, CEO of RES, Americas, stated, "We are excited to be continuing our close relationship with DONG Energy through this major project as they increase their participation in the U.S. market. 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."

Samuel Leupold, Executive Vice President of Wind Power, said, "The U.S. is an interesting market for offshore wind with the potential to become a significant area for future development. With the transfer of the offshore wind development projects in the U.S., 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."

The Lease Area to be transferred is 160,480 acres, and is located between 7-21 nautical miles from shore with water depths around 24 meters.

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