BOSTON–(BUSINESS WIRE)–Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, today announced an agreement for the sale of the Kitty Hawk North offshore wind lease area to Dominion Energy. The agreement, which includes the Kitty Hawk North offshore wind lease area and associated assets, is for a sale of approximately $160 million, inclusive of a payment of about $3,000 per acre for the nearly 40,000-acre lease. The sale price consists of a lease acquisition payment of $117 million and associated development cost reimbursement to Avangrid.
“As Avangrid continues the construction of our nation-leading Vineyard Wind 1 project and the development of our diverse portfolio of offshore and onshore renewable projects, this transaction advances our strategic priorities by providing significant capital infusion for reinvestment,” said Avangrid CEO Pedro Azagra. “Executing this agreement allows us to move forward with our long-term plans for the development of Kitty Hawk South, further demonstrating our commitment to accelerating the clean energy transition in the United States.”
Avangrid retains the ownership and associated rights to the Kitty Hawk South lease, and will continue the development of the area, which has the potential to deliver up to 2.4 Gigawatts of power to North Carolina, Virginia, or other states or private companies.
As one of the largest renewable energy developers in the nation, Avangrid has an 8.8 Gigawatt portfolio of more than 75 wind and solar facilities in 25 states, generating enough energy to power over 2.8 million homes across the country.
Avangrid is building the nation’s first large-scale offshore wind project, Vineyard Wind 1, currently under construction 15 miles south of Martha’s Vineyard. On June 26, 2024, Avangrid announced that it has placed 10 turbines into production for the project, making Vineyard Wind 1 the largest operating offshore wind farm in the U.S.
Avangrid is also developing the New England Wind lease area, which received a favorable Record of Decision from the Department of the Interior in April 2024, followed by the approval of its Construction and Operations Plan in July 2024.
In March 2024, Avangrid submitted multiple proposals for the New England Wind projects to the Massachusetts-Rhode Island-Connecticut Multi-State Procurement for Offshore Wind. The states are anticipated to announce selected projects from the competitive procurement in August 2024.
About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $45 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: networks and renewables. Through its networks business, Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewables business, Avangrid owns and operates a portfolio of renewable energy generation facilities across the United States. Avangrid employs approximately 8,000 people and has been recognized by JUST Capital as one of the JUST 100 companies – a ranking of America’s best corporate citizens – in 2024 for the fourth consecutive year. In 2024, Avangrid ranked first among utilities and 12 overall. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2024 for the sixth consecutive year by the Ethisphere Institute. Avangrid is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit www.avangrid.com.
