Denmark-based Ørsted has acquired the 150 MW / 600 MWh Salzburg Battery Energy Storage System (BESS) project in Midland Township, Michigan, from U.S. developer ESA Solar Energy LLC, in a cross-border transaction that underscores growing European utility appetite for policy-backed U.S. storage assets. The deal was announced on May 7, 2026, with Ascend Analytics serving as exclusive advisor to ESA through its Ascend Energy Exchange (AEX) platform, providing asset valuation, financial modeling, market outlook, and end-to-end transaction advisory.
Background
The Salzburg project secured a landmark permitting approval in early 2025, becoming one of the first utility-scale standalone BESS assets to navigate Michigan's new permitting framework established under Public Act 233 of 2023. The project is designed to deliver peak shaving, load shifting, and grid regulation services, with a dedicated substation providing direct transmission-level interconnection-a structural advantage for utility offtake contracting. It is currently progressing through the MISO 2023 Interconnection Study Cycle, with the study process expected to complete in 2026.
Michigan has emerged as a priority storage market, underpinned by the state's 60% renewable portfolio standard (RPS) target by 2035 and a 100% clean energy mandate by 2040. Those mandated procurement timelines are creating a structured utility offtake case that increasingly attracts capitalized international buyers seeking de-risked, permitted assets over greenfield exposure.
For Ørsted, the Salzburg acquisition is the latest step in a deliberate build-out of its standalone U.S. storage portfolio. In August 2024, Ørsted partnered with Mission Clean Energy to develop 1 GW of standalone BESS projects across MISO's Central and North regions, with commissioning targeted around 2030. In March 2025, Ørsted made a $55 million strategic equity investment in Mission Clean Energy to expand the shared project pipeline. The company also holds co-located storage assets, including a 300 MW / 1,200 MWh installation at Eleven Mile Solar Center in Arizona.
Details
The Salzburg BESS is a standalone asset sited on a 15-acre parcel in northwest Midland Township, targeting a commercial operation date between 2029 and 2030. ESA will retain a local presence to provide post-close development services, maintaining continuity through the remaining interconnection and EPC contracting phases.
"Acquiring this energy storage project fits well within our strategic growth ambitions, adding to our development pipeline and strengthening Ørsted's expanding U.S. storage portfolio with a strategically located asset," said James Giamarino, Chief Commercial Officer of Ørsted Americas, according to the official press release.
ESA CEO Lindsay Latre described the transaction as consistent with the company's model of advancing projects through early-phase development and permitting before transferring ownership to capitalized operators. ESA has transacted over 8 GW of solar and storage developments over the past decade and maintains a presence across 24 U.S. states. Ascend Analytics' Rahm Orenstein, Managing Director of AEX, noted that ESA's "track record of partnering with tier one renewables and storage firms" was a key factor in positioning the asset for a strategic acquirer.
The transaction structure-where a specialized domestic developer completes permitting and advances interconnection before selling to a balance-sheet-strong international IPP-reflects a wider shift in U.S. BESS M&A. According to Megaproject analysis, U.S. BESS M&A activity has been moving from purely merchant ERCOT exposure toward policy-backed MISO storage, with buyers prioritizing interconnection progress and near-term revenue visibility over raw capacity.
The backdrop for Ørsted includes financial pressure: the company reported a 46% decline in Q1 2026 profit, from DKK 4.9 billion (approximately US$771 million) in Q1 2025 to approximately US$409 million. CEO Rasmus Errboe has stated the company's primary focus "going forward will be on offshore wind in Europe and select markets in APAC," according to Energy-Storage.News-making selective, permitted U.S. storage acquisitions a capital-efficient path to maintaining its North American pipeline.
Outlook
The Salzburg project's interconnection study through MISO is expected to complete in 2026, after which EPC contracting and financial close will represent the critical path to the 2029-2030 commercial energization target. Ascend Analytics has also launched a separate sales process on behalf of ESA for a portfolio of 36 early-stage BESS projects spanning Michigan, Wisconsin, Minnesota, and Iowa, representing approximately 6 GW of potential storage capacity, suggesting further cross-border transactions in MISO may follow. Whether Ørsted participates in that broader portfolio process-or focuses capital on advancing its existing Michigan and Midwest pipeline-will signal how aggressively the Danish IPP pursues standalone U.S. storage amid its stated capital discipline.
