Ørsted buys 64 acres of land near Harbeson for $5.2 million

Under the name Skipjack Offshore Energy LLC, Danish-based power company Ørsted has purchased a 64-acre piece of property near Harbeson for $5.2 million.

Located at the intersection of Walker and Diamond Farm roads, the piece of property encompasses the open field from Diamond Farm Road to the Anthem development. According to Sussex County sales records the sale was finalized Jan. 31.

Ørsted’s offshore wind competitor US Wind has been in the news recently as that company makes its way through the federal, state and county approval process, but this is the first time there’s been an Ørsted development locally in more than a year.

Ørsted has the development rights for an offshore wind farm on two federal lease sites in federal ocean waters off the coast of Delaware. Combined, the contiguous sites stretch from Rehoboth Beach south to Bethany Beach, and if fully built out, could produce 966 megawatts.

In January 2024, Ørsted announced it was still moving forward with development plans for the project, but withdrawing from a deal with the Maryland Public Service Commission to find better terms.

Maddy Cronin, Ørsted spokesperson, said Feb. 19 the company entered into an agreement in October 2023 to purchase this property. The agreement was struck prior to the company’s decision to reposition and, pursuant to that agreement, the transaction was finalized this month, she said.

Ørsted is advancing development of Skipjack Wind and is monitoring offshore wind procurement opportunities in the region, said Cronin.

Ørsted declined to comment on the future use of the land. However, the property is close to a Delmarva Power substation off Route 9 in Harbeson. As part of its construction and operations plan submitted to the Bureau of Ocean Energy Management, US Wind had this substation as one of three substations that could be used to connect its offshore wind farm to the power grid on land. Ultimately, US Wind chose to pursue that land-based connection near a substation at the Indian River power plant in Dagsboro. The third substation connection option in the US Wind plan is near Milford.

Ørsted also declined to comment on what local ocean dune the offshore cables would go under on their way to any substation connection. In the US Wind application, the cables for the Harbeson option go under the dune near Tower Road.

Chip Guy, Sussex County spokesperson, said nothing had been filed with the county’s building and zoning department as of Feb. 20.

In 2023, the state’s Preliminary Land Use Service reviewed a proposed subdivision on the property. At the time, the plan called for 128 single-family home lots. The project did not come to fruition.