Orsted-led gigascale US Atlantic wind flagship passes key milestone on way to construction
Flagship up-to-1.4GW project being developed by Dane and New Jersey state utility PSEG could get final go-ahead by March, opening door for 20GW of plant approval in 2023
Danish developer Orsted and US utility PSEG have taken a key step forward in their plans to build up-to-1.4GW of wind plant off New Jersey, with the start of public consultation on the environmental impact statement (EIS) for the Ocean Wind 1 project, the state’s flagship industrial-scale sector development.
Publication of the EIS’ so-called notice of availability by the Bureau of Ocean Energy Management (BOEM), the regulator in charge of energy development in US federal waters, kicks off a public comment period that is part of the process necessary to move the project toward a ROD (record of decision) next February, after which construction could begin.
“BOEM remains committed to an environmental review process that establishes a strong foundation for offshore wind projects in the US while promoting ocean co-use and avoiding or reducing potential conflicts,” said BOEM director Amanda Lefton.
“The feedback provided by ocean users and our many stakeholders will help inform the final EIS and provide invaluable insight to decision makers.”
Maddy Urbish, head of government affairs & policy in New Jersey for Orsted, said: “The release of the draft EIS marks a critical and exciting permitting milestone for the project in BOEM’s review… and signifies one more step forward to contributing to New Jersey’s renewable energy goals.”
The Orsted-PSEG joint venture (JV) first handed in the Ocean Wind 1 COP on 15 August 2019, but has since updated it, most recently last week (14 June), as the basis for the draft EIS.
Ocean Wind 1’s COP is built around almost 100 ultra-large-scale wind turbines and up to three offshore substations within the lease area, with export cables making landfall in Ocean and Cape May counties in New Jersey.
BOEM noted in the draft EIS that Ocean Wind 1, which is expected to generate $1.17bn in economic benefits in New Jersey while creating some 15,000 jobs over its operating life, could come online with a capacity of up to 1.4GW. But Orsted has separately announced GE as its preferred supplier, with its 13MW Haliade-X, which would give the development a nameplate of 1.2GW.
The American Clean Power Association (ACP) noted that this is the first DEIS issued under the Biden administration, and stated: “Offshore wind farms are some of the most carefully scrutinized infrastructure projects in the country, not just in terms of environmental and socio-economic effects, but also in terms of the substantial climate and jobs benefits that their construction and operation bring.” ACP urged timely review of the project to help “meet our nation’s clean energy and emissions reductions goals”.
The project was awarded 1.1GW of offshore wind renewable energy credits (OREC) by the New Jersey Board of Public Utilities in 2019 at $98/MWh, the first step towards realising the state’s legal mandate of 7.5GW of offshore wind capacity by 2035.
The state is likewise pioneering planned transmission for the offshore wind sector as the first state to incorporate public policy goals into transmission planning under new federal guidelines and by agreement with regional transmission operator PJM.
New Jersey is currently evaluating 81 proposals for offshore wind transmission, including multiple bids submitted by the Orsted-PSEG JV.