'Clean energy and good jobs to Delmarva' | Feds run rule over US Wind's 2GW offshore plan

Project envelope for development off Maryland includes contracted offtake with state for more than 1GW of capacity

Cove Point liquefied natural gas terminal, Maryland, US
Cove Point liquefied natural gas terminal, Maryland, USFoto: Upstream

The US government is set to begin its environmental review of up-to-2GW of offshore wind power capacity being developed by Baltimore-based US Wind off the coast of Maryland that includes two separate projects with contracted offtake exceeding 1GW.

“President Biden has set the bar high for a clean energy future with ambitious offshore wind goals that will lower costs for families, create nearly 80,000 good-paying jobs and make substantive progress as we work to confront the climate crisis,” said Secretary of the Interior Deb Haaland.

The Bureau of Ocean Energy Management (BOEM), the agency within the Department of the Interior charged with regulating energy development in federal waters, announced that it would publish its notice of intent (NOI) to conduct an environmental impact statement (EIS) on the offshore wind capacity being developed by US Wind on 8 June.

US Wind, majority owned by Italian energy firm Renexia, submitted it’s a construction and operations plan (COP) to BOEM in August 2020 and has since updated it several times, most recently last month. The COP calls for up to 121 turbines, four offshore substation platforms, and four offshore export cable corridors on the almost 80,000-acre (323km2) lease in waters 10 miles (16km) from Ocean City.

The NOI publication will initiate a 30-day commenting period ending on 8 July which is aimed at helping BOEM focus the activities of the EIS. During this time, the agency will hold three virtual public meetings and accept comments.

“If approved, this project will represent another step forward to creating a robust offshore wind industry here in the US, all while creating good-paying, family-supporting jobs,” said BOEM director Amanda Lefton.

The COP encompasses the 1.07GW of offshore wind offtake that US Wind has already contracted with the state of Maryland in two separate offshore wind renewable energy credit (OREC) tenders as well as nearly another 1GW of potential capacity for future offtake rounds.

Maryland was an early mover in offshore wind, holding its first tender for OREC capacity in 2017, with US Wind’s MarWin project winning 270MW, while Danish offshore wind developer Orsted took 120MW.

Last December, US Wind was awarded another 808.5MW of ORECs by the Maryland Public Service Commission (PSC) for its Momentum Wind bid 2 proposal, while Orsted won 846MW for its Skipjack 2.1 project. The awards together eclipse the state’s original maximum goal of 1.2GW for the round 2 tender and meets its total offshore wind goal of 2GW by 2030, as stated in its Clean Energy Jobs Act.

“Today’s announcement marks a significant milestone in US Wind’s efforts to deliver clean energy and good jobs to the Delmarva [Delaware, Maryland, and Virginia] region,” said Jeff Grybowski, US Wind CEO. “BOEM’s decision is a vote of confidence that our project is ready to advance to the next stage in the federal permitting process.”

The EIS will involve multiple government agencies, including the National Marine Fisheries Service, the Army Corps of Engineers, the US Coast Guard, and others, and is expected to run for at least two years.

As part of its Maryland award, US Wind, has pledged to invest in a monopile manufacturing facility at logistic hub Tradepoint Atlantic in Baltimore County, Maryland, the site of the former Sparrows Point steel making plant, which when operating at full capacity will be able to deliver 100 monopiles annually. The developer is committing at least 19% of total procurement instate that will exceed $570m.
“Advancing US Wind’s project helps cement Maryland as a manufacturing hub for this new industry and crucially adds more capabilities to the emerging domestic supply chain,” Sam Salustro, director of coalitions & strategic partnerships at the Business Network for Offshore Wind, told Recharge.

Josh Kaplowitz, vice president for offshore wind for renewable energy advocacy group American Clean Power Association, said: “US Wind’s investment in the former Bethlehem Steel Sparrow’s Point site for offshore wind development will lead to thousands of jobs being created in the region. We look forward to the American offshore wind industry continuing to invest billions of dollars into the economy and creating tens of thousands of jobs across the country.”

This is the tenth COP review initiated by BOEM, in line with pledges to review at least 16 COPs by 2025 towards meeting the Biden administration’s goal of 30GW of offshore wind capacity by 2030.
The announcement follows the release of the preliminary sales notice for lease acreage holding an estimated 4.5GW of offshore wind capacity off the coasts of California, as well as the successful lease auction in the Carolina Long Bay that saw acreage with 1.5GW of potential capacity go for $315m to two bidders, French oil major TotalEnergies and Charlotte, North Carolina-based Duke Energy.
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Published 7 June 2022, 05:54Updated 8 June 2022, 21:21
AmericasBOEMUSUS WindDeb Haaland