AVANGRID Acquires Major Stake in Massachusetts Off-Shore Wind Project with Vineyard Wind
Partnership combines global experience, strategic expertise, and
deep financial backing
Avangrid Renewables and Vineyard Wind, announced today that they have
formed a strategic partnership to jointly develop a large
scale wind energy project off the coast of Massachusetts. Avangrid
Renewables is acquiring a 50 percent ownership interest in Vineyard
Wind, the offshore wind energy developer that is part of the Copenhagen
Infrastructure Partners (CIP) portfolio.
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Avangrid Renewables is a subsidiary of AVANGRID Inc. (NYSE:AGR),
Iberdrola S.A. (Madrid:IBE), a worldwide leader in the energy industry
with significant offshore wind holdings in Europe, owns 81.5% of the
outstanding shares of AVANGRID common stock.
The partnership of the two companies will bring extensive offshore wind
expertise and substantial financial firepower to the Commonwealth’s
initiative to build offshore wind projects in Massachusetts.
Last summer, Massachusetts required utilities to procure 1,600 megawatts
(MW) of clean, offshore wind energy within the next decade, setting off
an intense competition among offshore wind developers in the region.
When the 1,600 MW of generation capacity are completed, they will
generate enough clean, homegrown energy to power the equivalent of more
than 750,000 Massachusetts homes every year.
Three companies to date have acquired lease rights to build projects off
the coast, including Vineyard Wind. Vineyard Wind’s project area is
about 15 miles south of Martha’s Vineyard.
“This is a major strategic partnership that combines Avangrid
Renewables’ US onshore wind development capabilities with Copenhagen
Infrastructure Partners and Iberdrola’s European offshore wind expertise
to give Vineyard Wind a significant advantage in building Massachusetts’
first offshore wind project,” said Lars Thaaning Pedersen, co-CEO of
Copenhagen Offshore Partners, CIP’s offshore wind development company.
Iberdrola holds offshore wind projects under development or construction
in England, Germany & France. Avangrid Renewables recently won its first
offshore wind lease auction in the US off the coast of North Carolina.
Copenhagen Infrastructure Partners is providing investment and
management for projects under construction in Germany and Scotland.
Executives with extensive offshore wind experience from these European
projects will now be joining Vineyard Wind’s local development team,
based in New Bedford, Mass.
“This partnership allows Vineyard Wind to leverage the financial
firepower that both CIP and AVANGRID can bring to bear to develop and
build this project,” Pedersen added. “AVANGRID’s interest in this
project demonstrates that they recognize the strength of the local team,
the local support we have, and the exciting potential for offshore wind
in Massachusetts.”
CIP and its executives have developed or invested in some of the biggest
offshore wind projects in the world, including the 402 MW Veja Mate
project off of Germany and the 588 MW Beatrice project off the coast of
Scotland. CIP manages more than $4 billion in assets. It acquired
Vineyard Wind in August 2016.
“Our equal partnership in this effort demonstrates the strong commitment
we’ve made to execute our growth strategy and expand our wind portfolio
across the US,” said James P. Torgerson, AVANGRID, CEO. “When you look
at our longer term position with the Kitty Hawk off-shore lease in NC
and factor in this more immediate off-shore opportunity in
Massachusetts, combined with our family of company’s extensive
experience and knowledge, you recognize we are well positioned to grow
this sector in the US.”
Vineyard Wind plans to begin construction of its project in early 2020,
in order to bring the economic development and clean energy benefits of
offshore wind to Massachusetts as soon as possible. Vineyard Wind has
also worked hard to establish long-term relationships and partnerships
with the local community that will provide significant benefit to the
project.
About AVANGRID
AVANGRID, Inc. (NYSE:AGR) is a diversified energy and utility company
with more than $31 billion in assets and operations in 27 states. The
company owns regulated utilities and electricity generation assets
through two primary lines of business, Avangrid Networks and Avangrid
Renewables. Avangrid Networks is comprised of eight electric and natural
gas utilities, serving approximately 3.2 million customers in New York
and New England. Avangrid Renewables operates 6.5 gigawatts of
electricity capacity, primarily through wind power, in 22 states across
the United States. AVANGRID employs approximately 6,800 people. For more
information, visit www.avangrid.com.
About Avangrid Renewables
Avangrid Renewables, LLC is a subsidiary of AVANGRID, Inc. (NYSE:AGR)
and part of the IBERDROLA Group. IBERDROLA, S.A., an energy pioneer with
the largest renewable asset base of any company in the world, owns 81.5%
of the outstanding shares of AVANGRID common stock. Avangrid Renewables,
LLC is headquartered in Portland, Ore., and has more than $10 billion of
operating assets totaling more than 6,000 MW of owned and controlled
wind and solar generation in 22 U.S. states. Avangrid Renewables
recently changed its legal name from Iberdrola Renewables, LLC. For more
information, visit www.avangridren.com.
About Vineyard Wind
Vineyard Wind, a portfolio company of funds of Copenhagen Infrastructure
Partners (CIP), is an offshore wind development company, based in New
Bedford, Mass., that is seeking to build the first large-scale offshore
wind energy project in the US.
About Copenhagen Infrastructure Partners
Copenhagen Infrastructure Partners K/S (CIP) is a fund management
company founded in 2012 by senior executives from the energy industry.
CIP and its executives have developed some of the biggest offshore wind
projects in the world, and CIP manages more than $4 billion in assets.
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