Total-Corio team and Invenergy win bumper New Jersey offshore wind round
Giant awards nearly max out 4GW offer and will replace Orsted's 2.25GW of withdrawn capacity
French oil major and offshore wind heavyweight TotalEnergies with partner Corio and leading independent US renewables firm Invenergy with energyRE were winners in the New Jersey round 3 tender, the state utility regulator announced today (Wednesday).
The TotalEnergies-led joint venture (JV) won an offtake contract from the New Jersey Board of Public Utilities (NJBPU) for its 1.34GW Attentive Energy 2 project at $131/MWh.
The Invenergy-energyRE JV walked away with $112/MWh for its 2.4GW Leading Light project, among the largest awarded in the Western Hemisphere, catapulting the partners to the top tier of US developers.
The awards are “undeniable proof that the future of offshore wind in New Jersey is as strong as ever,” said governor Phil Murphy, a staunch industry supporter.
“In addition to bringing good-paying jobs and environmental benefits to the Garden State, these projects will significantly advance our pursuit of a 100% clean energy economy by 2035,” he added.
New Jersey is targeting 11GW of offshore wind by 2040, which it procures through offshore renewable energy credits (OREC), each of which represents the environmental attributes of one MWh.
“New Jersey’s selection of an American-led project is a tremendous step forward for the growth of the domestic offshore wind industry,” Leading Light said in a statement.
Both projects are in the New York Bight wind energy leasing area auctioned off by federal regulator Bureau of Ocean Energy Management in 2022. The contracts include up to 15% inflation adjustment mechanisms.
Under Murphy's leadership, the state has invested billions in port and supply chain infrastructure, including the $685m New Jersey Wind Port.
Leadership threatened
Orsted's 1.1GW Ocean Wind was awarded in 2019 at $116/MWh, while its 1.15GW Ocean Wind 2 won its contract in 2021 at $42/MWh.
Orsted’s abandonment of its projects left significant supply chain investments in limbo, including German steel fabricator EEW’s monopile factor in Paulsboro, and today's awards include $164m in investment by both developers in the facility.
Liz Burdock, CEO of offshore energy trade group Oceantic said: “New Jersey reasserts its leadership in the US offshore wind sector with today's 3.7GW commitment and securing new supply chain investments.”
The awards offer some $2.5bn in direct spending and $6.8bn in total economic benefits for the state while creating some 27,000 direct and induced jobs.
“Offshore wind will bring huge economic benefits to the state and region, creating jobs and new investment opportunities for manufacturing,” said Anne Reynolds, vice president for offshore wind for renewables advocate American Clean Power Association.
Price tags came in well below the New York round 3 where OREC contracts averaged $146/MWh. A NJBPU representative noted that the lower price seen in Leading Light is due to its larger size and greater economies of scale.
The projects are expected to raise monthly residential rates by $6.84, while commercial customers will see $58 hikes and industrial users $513, according to NJBPU.
Ratepayer impacts won’t be seen until the developments reach commercial operations early next decade.
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