Irish energy company ESB and Denmark-based Ørsted have signed an agreement to jointly develop a 5GW offshore wind portfolio in Ireland. Through the deal, the two companies have become 50-50 partners in offshore wind development projects off the coast of Ireland.

ESB and Ørsted will also provide complementary renewable hydrogen projects, the companies said. According to the partners, the first offshore wind project in the portfolio will take part in ORESS 2.1, the next Irish offshore wind auction.

Jim Dollard, executive director of power generation and trading at ESB, said ESB was developing a large renewable energy pipeline and as part of that he had developed a strong portfolio of offshore wind projects off the coast of Ireland. We are delighted to be working with Ørsted, a global leader in the offshore wind industry, to develop this portfolio in Ireland.

The partnership between ESB and Ørsted also involves working on long-term opportunities for renewable hydrogen generated by research projects. In addition, the partnership aims to support the Irish government's target of installing 7GW of offshore wind power by 2030. In addition, both companies are committed to contributing to the country's transition to net zero.

Duncan Clark, head and senior vice president of Ørsted UK and Ireland, said the partnership combines complementary strengths associated with the development of this market and creates an ideal platform for Ørsted to bring its global expertise in offshore wind delivery to Ireland.

Last month, Ørsted agreed to acquire a 50 percent stake in the OCS-A 500, an uncontracted federal offshore wind leasing area in the United States, from its partner Eversource Energy in an all-cash deal valued at $625 million. Offshore wind power has a potential capacity of up to 4GW under the sea.Editor/XingWentao