NJEDA board approves Ørsted sublease at New Jersey Wind Port

The sublease is for up to 34 acres of land at the NJWP. Ørsted will be the NJWP’s inaugural tenant and expects to create up to 200 jobs over its lease term. Orsted’s Ocean Wind 1 project is expected to create more than 15,000 jobs over its 25-year operational life.

NJEDA chief executive Tim Sullivan said, “The Board’s approval serves as another major step forward in achieving Governor Murphy’s 11-GW offshore wind target and cements New Jersey’s reputation as a national leader in offshore wind.

“Ørsted’s decision to marshal its Ocean Wind 1 project from NJWP will create 200 jobs that would otherwise have gone to other states and is the first of many projects that will use the port in the years and decades ahead.”

State Senator Bob Smith said, “There are immense economic, workforce development, and clean energy benefits anticipated to come with offshore wind development. Every step forward we make validates the hard work that the Legislature and the Murphy administration have undertaken to make the State an attractive partner for offshore wind developers.”

Ørsted will sublease up to 34 acres of property at the port for up to two years. Assuming a 24-month sublease term, total rent paid by Ørsted is estimated at over US$25M.

The agreement with Ørsted includes a mechanism for shared berth use, preserving NJWP’s ability to attract manufacturing tenants who require access to purpose-built wharves to ship out completed components.

The NJWP, once complete, will be the first and largest facility of its kind in the US. It is expected to support offshore wind projects up and down the US East Coast including serving as a regional hub for turbine component manufacturing. At more than 220 acres, the port can accommodate multiple Tier 1 component manufacturers, such as blades, nacelles, towers and cables.

The NJEDA first issued a notice to sublease in November 2020 and Ørsted submitted a non-binding offer in December of that year. The two parties executed a letter of intent in April 2022 and have since been negotiating final terms.  

The property being subleased to Orsted is owned by PSEG Nuclear and is being leased by NJEDA from PSEG Nuclear on a 78-year basis.