New York's US offshore wind supply chain gains on Equinor and Orsted's revived Round 4 arrays
Projects re-procured by state key to unlocking hundreds of millions in port and manufacturing investment and generating union jobs
Orsted marked completion of half the foundation components for its 920MW Sunrise Wind array at an upstate New York manufacturing site in the Port of Coeymans, a milestone for the state offshore wind industry that has struggled to advance despite ambitious mandates.
Sunrise as well as Equinor's 810MW Empire Wind 1 were both originally awarded in the state's first round procurement in 2019 with offtake contracts that were later rendered financially unviable due to mounting inflation and financing costs.
Empire’s offtake rose to $155/MWh from its previous $83.3/MWh, while Orsted's contract reached $146/MWh from the same base.
The re-awarded projects have enabled several hundred million dollars investment into port and supply chain investments including Orsted's manufacturing site near the capital of Albany.
The Port of Coeymans “is now among the first ports in the country to be mobilised for the construction of advanced foundation components for an offshore wind farm by US workers,” said Doreen Harris, CEO of the New York State Energy Research and Development Authority (Nyserda) that oversees the state's energy transition.
The facility employs 120 union workers, delivering on the promise made by President Joe Biden's administration that sector development would drive employment in organised labour.
Orsted has invested over $300m in New York's supply chain, including $86m for the Port of Coeymans facility 14 miles (22 km) south of the state capital, Albany.
New York-based Riggs Distler & Company was contracted to build the prefabricated components at the port, which will then be shipped down the Hudson River and out to the Sunrise Wind site in federal waters roughly 30 miles east of Montauk, Long Island.
Equinor SBMT
Infrastructure developer Skanska has been awarded a $861m for redevelopment of the onshore dimensions of the terminal, including demolition of existing buildings, improvements to support the staging of the wind turbine components, installation of underground utilities, and two new heavy-lift crane pads.
When completed in 2026, SBMT will initially serve as marshalling and O&M hub for the 810MW Empire Wind 1 project as well as staging for future projects as the state progresses towards its 9GW by 2035 mandate.
“This construction will result in union jobs and local economic benefits while supporting a project that will deliver homegrown power to New Yorkers and position the state as a leader in the advancing offshore wind industry,” said Molly Morris, head of Equinor Americas at the groundbreaking last June.
Sector struggles
New York's offshore wind ambitions have been tested by inflationary headwinds, surging financing costs, and supply chain turmoil that saw over 8GW of capacity contracted and then voided over the last year.
The state's now closed Round 5 attracted all three developers in the voided procurement to rebid, including Copenhagen Infrastructure Partners, RWE-National grid joint venture, and a consortium including TotalEnergies, Corio, and Rise Light & Power.
Orsted has likewise joined in with its 1.4GW Starboard Wind proposal.
(Copyright)