Public Service Enterprise Group ( NYSE: PEG ) said Wednesday it agreed to sell its 25% equity stake in the Ocean Wind 1 wind energy project offshore New Jersey to Ørsted ( OTCPK:DNNGY ) for an undisclosed sum.
Ørsted ( OTCPK:DNNGY ) will gain 100% ownership of the project and proceed with development while PSEG ( PEG ) supports onshore infrastructure construction.
"It has become clear that it is best for the project for PSEG to step aside and allow for a better positioned tax investor to join the project so that it can proceed with an optimized tax structure," PSEG ( PEG ) said.
The initial delivery of power from Ocean Wind 1 is scheduled for the end of 2024, with full commissioning expected in 2025.
With an investment in Public Service Enterprise Group ( PEG ), "your returns will at best be flat or 1%-3% annually for the next three years," Wolf Report writes in an analysis posted on Seeking Alpha .
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PSEG to sell its 25% equity stake in Ocean Wind 1 project to Ørsted