US Atlantic floating wind setback as Maine Searsport terminal fails to win $456m grant

Secretary of Transportation Pete Buttigieg announced $4.2bn in funding for infrastructure projects, none of them related to offshore wind

Pete Buttigieg, US Secretary of Transportation.
Pete Buttigieg, US Secretary of Transportation.Photo: Gage Skidmore/Creative Commons 2.0

Floating wind development in the Gulf of Maine was set back this week with news the federal government had turned down the state's request for a $456m port grant.

The request was through the Department of Transportation (DoT)’s Multimodal Project Discretionary Grant (MPDG) programme funded by the Infrastructure Investment and Jobs Act of 2021.

On Monday, DoT secretary Pete Buttigieg announced $4.2bn in grant awards through MPDG, with none going to the offshore wind sector. Last year, Humboldt Bay floating wind port project was awarded $427m by DoT.

“We believe the result is a reflection of the fiercely competitive nature of this program and that it does not reflect, or undermine, the widely recognised need for this port, the strong merit of Maine’s plan or the vast economic and environmental benefits associated with port development,” Maine transportation commissioner Bruce Van Note said.

Van Note said the state “knew the grant program would be extremely competitive and that our application was ambitious.”

The state is seeking another $130 million from a separate federal programme to help get the project moving forward, Van Note added. The port had been set for deployment in 2029.

Federal regulator Bureau of Ocean Energy Management (BOEM) is poised to hold its largest offshore wind leasing round ever for some 13GW of capacity on 29 October in the Gulf of Maine.

Gulf of Maine development

Development in Gulf of Maine deep waters hinges on access to a floating wind terminal.

Maritime contractor Crowley and Massachusetts are partnered on upgrading Salem Harbour on the state’s North Coast for both the fixed and floating wind sectors, but its capacity will likely be insufficient amid surging demand in New England.

The six states of the North Atlantic region have ambitious emissions and climate targets but lack area for largescale onshore renewables deployment, prompting demand for offshore wind.

Massachusetts mandates 5.6GW of capacity under contract and may eventually seek 20GW to meet its emissions targets. The Bay State and Rhode Island partnered on 2.8GW of procurement last month.

Searsport is also vital for development of the 144MW Maine Research Array (MeRA), an ambitious pilot to test run floating wind development in the Gulf of Maine.

BOEM granted the research array a 15,000-acre (6,070-ha) lease in August, a first for the US floating wind sector.

MeRA is being developed by Mitsubishi’s Diamond Offshore Wind (DOW) in collaboration with the state and technology partner University of Maine (UMaine).

UMaine has taken the lead in US floating wind platform technology with its patented VolturnUS concrete hull.

“A port is the keystone for Maine to capture the economic opportunities of offshore wind,” said DOW spokesman Dave Wilby.

“Diamond Offshore Wind believes a finalised power purchase agreement for the MeRA would boost Maine DOT's case as it pursues federal funding in future rounds. Such a significant step in the development of MeRA, which will be the anchor tenant of the port, will strengthen the demonstrated need for port investment,” he added.

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Published 22 October 2024, 17:56Updated 23 October 2024, 20:24
AmericasUSGulf of MaineMaineMitsubishi