Invenergy buys 3.6GW New Jersey offshore wind power line project from Blackstone

Developer sees Jersey Link as an “innovative, scalable, and comprehensive HVDC transmission solution” to power millions of homes

. New Jersey Governor Phil Murphy.
. New Jersey Governor Phil Murphy.Foto: Phil Murphy campaign

Invenergy has acquired the early-stage Atlantic Power Transmission project from Blackstone Infrastructure Partners, renaming it Jersey Link, which proposes to integrate up to 3.6GW of new offshore wind capacity into the US state of New Jersey’s electric grid.

Transaction financial terms were not made public. Blackstone will continue to support the early-stage high-voltage direct current (HVDC) transmission project moving forward, according to both companies.

"This announcement underscores Invenergy's continued commitment to building the critical infrastructure required to advance the offshore wind and transmission goals of New Jersey, and the US at large," said Robert Taylor, senior project director for Jersey Link.

"Invenergy's deeply experienced team will ensure Jersey Link cost-effectively delivers offshore wind power to shore, invests in coastal and inland communities, and advances workforce development opportunities throughout the state," he claimed.

In September 2022, Governor Phil Murphy signed executive order 307, increasing the state’s offshore wind goal from 7.5GW by 2035 to 11GW by 2040. The directive also instructs the New Jersey Board of Public Utilities to study the feasibility of raising the target further.

Invenergy describes Jersey Link as an “innovative, scalable, and comprehensive HVDC transmission solution” that will deliver power for millions of New Jersey homes.

New Jersey pioneered planned offshore wind transmission development through its State Agreement Approach (SAA) federally approved process that weighs public policy as an equal factor to reliability, cost, and need when proposing grid upgrades.

The state selected the Larrabee Tri-Collector Solution submitted by Mid-Atlantic Offshore Development (MAOD), a joint venture between the two energy majors behind Atlantic Shores project – Shell and EDF – and Jersey Central Power & Light (JCP&L). The award is expected to save ratepayers $3bn in grid-upgrade costs.

The solicitation only covered New Jersey’s earlier 7.5GW by 2035 offshore wind goal, and the state is considering a SAA 2.0 request for proposals to cover the remaining 3.5GW.

“Investment in transmission is essential to meet America's growing electricity needs and will catalyze significant economic growth - directing investment and new skilled jobs into the local economy through coastal community revitalisation and new workforce opportunities,” the Chicago-based developer said.

On Monday, co-developer enegyRe announced it had raised $1.2bn in capital from Danish investors including Glentra Capital, Novo Holdings, and pension fund PKA to advance its varied projects across the clean energy spectrum.
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Published 7 December 2023, 01:53Updated 7 December 2023, 01:53
USAmericasInvenergyNew JerseyBlackstone Group