DONG Energy has agreed to take over the newly assigned development rights from RES Americas for a potential 1 gigawatt plus US offshore wind farm off the coast of Massachusetts.
Located 55 miles south of Martha's Vineyard, with wind and seabed conditions similar to those found in North West Europe, DONG believes the project has strong development potential.
RES Americas secured the rights to develop the project when it won one of the two leases awarded at the offshore wind auction held by the Bureau of Ocean Energy Management (BOEM) in January this year.
Following approval from BOEM, the lease will be taken over by DONG Energy, the global market leader in developing, building and operating offshore wind farms. RES Americas will continue to support development of the lease area as agreed with DONG Energy.
Samuel Leupold, Executive Vice President of DONG Energy Wind Power, said: "The US is an interesting new market for offshore wind with the potential to become a significant area for future development. We have constructed around one third of the offshore wind capacity in the world and we are looking forward to bringing our skills and experience to this new market."
During recent years, the cost of offshore wind has been significantly reduced for projects in Europe. DONG Energy believes the same trend is possible in the US. Cost reductions have been achieved through technology improvements as well as a maturing supply chain, which is the result of a sizable roll-out of offshore wind in North-Western Europe that was enabled by stable and predictable policy frameworks.
A draft policy bill to support the regulatory conditions for offshore wind has been introduced with the Massachusetts government aiming to provide a stable framework that will enable the build out of projects and the creation of new jobs.
Samuel Leupold said: "Building large scale energy infrastructure projects, such as offshore wind farms, requires stable framework conditions and dedicated political support. We have more than 20 years of experience in developing and building offshore wind farms in Europe. We are excited to work constructively with regulators, potential suppliers and contractors as all other stakeholders to establish a successful offshore wind industry in Massachusetts."