Biden officials give key OK to US Wind multi-gigawatt Maryland offshore array
Project advances off ambitious MidAtlantic state despite low priced offtake contract, with full federal approval expected later this year
Coastal energy regulator Bureau of Ocean Energy Management (BOEM) announced its greenlight for US Wind’s environmental impact statement (EIS) for its up to 2.2GW array in Maryland coastal waters, its tenth such approval so far.
Total capacity includes two projects under contract to the MidAtlantic state, the 270MW MarWin and 808MW Momentum wind arrays, with the remaining capacity to be bid into further rounds.
“Our environmental review carefully considered the best available science and information provided by Tribes, other government agencies, local communities, industry, ocean users, and environmental organisations,” said BOEM director Elizabeth Klein.
“This vital collaboration with all our government partners and stakeholders will continue through the subsequent phases of the project.”
US Wind, majority owned by Italy’s Renexia, proposes in its construction and operations plan (COP) to install up to 114 turbines, four at-sea substations, and four export cable corridors in its lease area 10 miles (16 km) off Maryland and neighbouring Delaware.
Maryland has some of the US’ most ambitious sector targets, with a law requiring 8.5GW by 2031 signed by governor Wes Moore last year.
“We are well on our way to putting Maryland’s offshore wind goals that much closer to reality,” said Jeff Grybowski, US Wind CEO.
“We are now one step closer to securing all of our federal permits by the end of this year and look forward to the day we can get steel in the water,” Grybowski added.
US Wind is a major investor into Maryland's offshore wind supply chain and is developing a monopile manufacturing facility at Sparrows Point, formerly the site of the nation's largest steelworks.
“Along with US Wind’s direct investment in Sparrows Point Steel, this offshore wind project will contribute to new, well-paying jobs across Maryland and throughout the supply chain,” said Liz Burdock, CEO of industry group Oceantic Network.
“While more projects are needed to meet Maryland’s offshore wind energy targets, today’s action is an important step forward,” she added.
EIS approval will likely be followed by full COP go-ahead in the coming months. Once approved, the nation would have 15GW of offshore wind teed up for construction.
BOEM has ramped offshore wind project approvals and leasing as it nears the election in November that could halt the sector in its tracks.
Maryland's challenged sector rollout
Despite being a sector pioneer, the MidAtlantic state's path to development has been rocky.
Orsted has said that the projects could be revived in future bidding rounds.
Orsted's Skipjack 1 and US Wind's MarWin were both awarded in 2017 with offshore wind renewable energy credits (ORECs) of $132/MWh.
Skipjack 2 and Momentum Wind were awarded in 2021 at the levelised nominal price of $71.6/MWh for over 20 years, which currently stands as the lowest for a commercial US project.
Despite Skipjack's withdrawal, US Wind has made no public moves towards renegotiating its offtake contracts.
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