Business & Tech
    Next Score View the next score

    With Deepwater Wind’s takeover, there’ll be less competition for offshore projects in Mass.

    FILE - In this Aug. 15, 2016 file photo, three of Deepwater Wind's five turbines stand in the water off Block Island, R.I, the nation's first offshore wind farm. Deepwater Wind said Wednesday, May 30, 2018, it will create a new 400-megawatt wind farm south of Martha's Vineyard that will be 10 times the size of its Block Island project. (AP Photo/Michael Dwyer, File)
    Associated Press
    Three of Deepwater Wind's five turbines are seen off Block Island, R.I.

    The Danish energy company Orsted has reached a $510 million deal to take over Deepwater Wind, a rival wind farm developer, from the investment firm D.E. Shaw & Co.

    For Massachusetts, that means one less competitor on the scene when the next offshore wind contracts go out to bid.

    Both companies competed in the first round of bidding on offshore projects. But a third competitor, Vineyard Wind, beat out both of them in May, in part by showing it would be able to more cheaply build a wind farm with as many as 100 turbines, generating up to 800 megawatts, south of Martha’s Vineyard. (Other companies have also expressed an interest in leasing federal waters off of New England for wind farms.)

    Advertisement

    Orsted, whose North American operations are based in Boston, is much larger and has more experience than Deepwater Wind, with a history of developing offshore projects in Europe. (Orsted used to be called DONG Energy, an acronym that translated to Danish Oil and Natural Gas but also prompted more than a few jokes in English.)

    Get Talking Points in your inbox:
    An afternoon recap of the day’s most important business news, delivered weekdays.
    Thank you for signing up! Sign up for more newsletters here

    Despite Orsted’s size advantage, Deepwater so far seems to have had better luck landing contracts for US projects.

    The Providence company built the only operational offshore wind farm the United States, a 30-megawatt project off Block Island, in operation since 2016. And Deepwater has contracts in place — or pending finalization — for projects that would together total 810 megawatts off the coasts of New England, New York, and Maryland.

    Orsted, meanwhile, is building two 6-megawatt wind turbines for Dominion off Virginia’s coast.

    Both Orsted and Deepwater have vast development rights beyond these projects for waters off the East Coast. Orsted also recently reached a deal to acquire Lincoln Clean Energy, a US developer of onshore wind farms.

    Advertisement

    Martin Neubert, Orsted’s offshore wind chief executive, said the Deepwater deal will enable Orsted to combine its track record in building and operating large-scale offshore wind farms with Deepwater’s expertise in developing wind farm projects in the United States.

    The deal is expected to close this year, pending federal antitrust approval. The merged organization would be called Orsted US Offshore Wind, led by executives from both companies, including Thomas Brostrom from Orsted and Jeff Grybowski from Deepwater Wind. The company would maintain existing offices in Boston and Providence.

    Jon Chesto can be reached at jon.chesto@globe.com. Follow him on Twitter @jonchesto.