Massachusetts ramps offshore wind investment with Salem Harbour-Crowley port deal
Redevelopment of former coal power plant and coastal site positions state for current portfolio as well as future floating opportunities
Massachusetts and maritime contractor Crowley Marine Services moved forward with plans to redevelop the site of a shuttered 750MW coal fired power plant at Salem Harbour into the state’s second purpose-built offshore wind port with transfer of ownership.
Massachusetts Clean Energy Centre (MassCEC) officially purchased the 42-acre (17-ha) parcel B at Salem Harbour from Crowley, which had acquired it last year for $30m.
Infrastructure investment firm Castleton Commodities owns the 674MW gas-fired power plant on the remaining 21 acres at the harbour.
Included in the transaction, MassCEC transferred 5 acres, including a deep-water berth, to the City of Salem.
“Like many other US port terminals, public ownership of the location assists in various aspects of development and operations by private companies,” said David DeCamp, head of corporate communications for Crowley.
The project is currently in permitting and expected to be built and commissioned by the end of 2026.
MassCEC spearheaded development of the New Bedford Marine Commerce Terminal, the nation’s first purpose-built offshore wind port currently in operation for Vineyard Wind’s installation.
“MassCEC’s offshore wind infrastructure has given Massachusetts our competitive edge in this growing industry,” said Governor Maura Healey.
Adding the Salem Harbour to its portfolio “will further elevate Massachusetts as a global leader in the offshore wind industry,” said Healey.
When completed the facility will provide the heavy lift infrastructure and shoreside equipment for marine operations related to offshore wind installations, Crowley confirmed.
Offshore wind pioneer
The state has been a key driver of US offshore wind development. It was the site for the nation’s first and ultimately failed attempt with Cape Wind and the 800MW Vineyard project, the first commercial scale project to begin powering the grid.
It saw major setbacks last year to its aspirations for 5.6GW of contracted capacity by 2027 when two developers, Iberdrola’s Avangrid and SouthCoast Wind, a joint venture of Shell and Ocean Winds (Engie and EDPR), cancelled offtake contracts totalling 2.4GW, leaving the state with only Vineyard.
Floating wind future
Currently, 100% of the facility is allocated to near-term build out of bottom fixed offshore wind, DeCamp confirmed. He said Crowley “will expect to pivot Salem to also support floating wind as the floating projects in the Gulf of Maine come online.”
Funding for the Salem Offshore Wind Terminal includes a federal grant for $33m from the Department of Transportation’s Maritime Administration (Marad), with the state chipping in another $80m.