(Reuters) - Denmark's Orsted (CSE:ORSTED) said on Thursday it had submitted a new proposal with Eversource for Sunrise Wind in response to New York's latest offshore wind solicitation.
Sunrise Wind is a 924 MW offshore wind farm which would deliver power to New York and is expected to be completed by 2026, Orsted said.
Under the updated proposal, Orsted reached an agreement to acquire Eversource's 50% share in the Sunrise Wind project if awarded a contract in New York's fourth offshore wind solicitation
If Orsted wins the bid, it would become the sole owner of Sunrise Wind, while Eversource would lead the project's onshore construction, the Danish renewable energy firm said.
Additionally, Orsted said it would pay 50% percent of the negotiated purchase price upon closing the sales transaction, with the remaining 50% to be paid when onshore construction is completed.
The 50-50 joint venture for Sunrise Wind will remain in place if the approval is not granted.
Orsted did not provide financial details for the acquisition of Eversource's stake in Sunrise Wind.
New York State last year launched a new accelerated offshore wind solicitation in a bit to revive troubled projects and keep the state on track to meet its renewable energy goals.
The Danish wind farm developer said in a separate statement it has withdrawn from the Maryland Public Service Commission orders approving Skipjack 1 and 2 projects as they are no longer commercially viable due to high interest rates and supply chain constraints.
The company said it intends to continue advancing development for the combined project, and will reposition Skipjack Wind, a combined 966 megawatt project.