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Big ships and big dollars lie ahead for wind energy developers looking to cash in on East Coast waters

By Kirk Moore in WorkBoat

Norway-based Fred.Olsen Windcarrier provided its construction vessel Brave Turn to build the Block Island Wind Farm alongside Montco Offshore liftboats. Deepwater Wind photo

Off the New Jersey coast, the bright red hull of the Fugro Enterprise has become a familiar sight to commercial fishermen who pull shellfish dredges and tend gillnets.

Plodding along at around 4 knots, the 170’x40’x11′ survey vessel is making detailed geotechnical surveys for the Ocean Wind energy project, planned by Ørsted to accommodate towering wind turbines that would supply New Jersey with its first 1,100 megawatts of renewable energy generated by offshore wind.

The CTV Atlantic Pioneer has serviced the Block Island Wind Farm since spring 2016. Blount Boats photo

To New Jersey’s renewable power advocates and Democratic Gov. Phil Murphy, the work is a welcome sight. It’s the first step toward building what they hope will be 3,500 MW of offshore power by 2030.

For people in the state’s seafood industry — including the long-established and profitable scallop and surf clam fleets — the big red boat portends a new struggle to stay in business.

“The impact to New Jersey will be devastating if the commercial fishing industry is displaced at all,” warned Brick Wenzel, a captain who fishes out of Point Pleasant Beach, N.J., as state utility regulators prepared measure so Ørsted and other companies could bid for power contracts.

The U.S. Bureau of Ocean Energy Management (BOEM) and Coast Guard have put wind developers on notice that they will need to plan for wide, safe vessel traffic lanes through future turbine arrays.

But that’s just one challenge ahead for an industry, born in the waters of northern Europe that now looks to develop potentially the richest wind energy market in the world.

In U.S. waters, offshore wind developers face hurdles of finding enough heavy-lift construction vessels, and even physical space in U.S. ports to accommodate the coming generation of giant wind turbines.

LOTS OF WIND, RIGHT SPOT

The East Coast between southern New England and the Carolinas is so attractive for offshore energy development because it has consistent year-round wind close to “load centers” — Boston, New York and other cities of the eastern megapolis, said James Bennett, who heads BOEM’s renewable energy program.

The pioneer was Deepwater Wind (now part of Ørsted) with its five-turbine, 30-MW Block Island Wind Farm of Rhode Island that went online in 2016. The same year Equinor (then known as Statoil) won a 79,350-acre lease for its Empire Wind project, tucked between shipping lanes into New York Harbor.

Two years later companies bid almost double what Equinor spent per acre to secure three more leases south of Martha’s Vineyard, Mass., for $135 million each in December 2018.

“I think what you’ll see with these leases in place is tremendous acceleration down to Virginia,” said Bennett.

An offshore wind turbine under construction. Siemens photo

With that market signal, U.S. shipbuilders and other would-be suppliers have been stepping up with their offerings. Two major trade shows, the International Partnering Forum 2019 presented by the Business Network for Offshore Wind in New York City in April, and the U.S. Offshore Wind conference in Boston in June, both counted packed houses with around 1,400 attendees each.

In May Ørsted and partner WindServe Marine LLC, an affiliate of New York-based Reinauer Group, announced plans to build a pair of crew transfer vessels (CTVs). The BMT Group-designed catamarans will be the second and third U.S.-flag CTVs since Blount Boats, Warren, R.I., built the CTV Atlantic Pioneer to service the Block Island turbines.

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After eight years in the wings, offshore wind energy is moving to center stage in New Jersey

Offshore wind
Credit: Zoltan Tasi/Unsplash

Tom Johnson reports for NJ Spotlight:

With Friday’s largest ever award for offshore-wind capacity to Ørsted’s Ocean Wind project, New Jersey signaled it will be a major, if not dominant, player in the sector rapidly developing along the Eastern Seaboard.

The selection of the $1.6 billion, 1,100-megawatt project about 15 miles off the coast of Atlantic City is significant in not only being the largest single offshore-wind project ever awarded in this country, but also its cost came in lower than many expected.

Ørsted’s Ocean Wind project established a first-year price of $98.10 per megawatt hour for the subsidy provided by ratepayers, dubbed an OREC (offshore renewable energy certificate). That compares with an OREC offered in Maryland, priced at $170 for a wind project there, and less expensive than a project in Massachusetts.

For New Jersey ratepayers, however, the actual cost paid will be far less — $46.46 MWh — when the energy and capacity revenue produced by the wind farm is refunded to utility customers. It means the estimated monthly impact will be an increase of $1.46 for residential, $13.05 for commercial, and $110.10 for industrial customers, according to the state Board of Public Utilities, which approved the project on Friday.

Cost is less than anticipated

“That is very low; I am surprised,’’ said Lyle Rawlings, founder of Advanced Solar Products, a firm that has been involved in setting New Jersey’s agenda to have 100 percent clean energy by 2050. “It’s excellent for ratepayers in moving toward a renewable energy future.

It also could be important in moving forward on other solicitations for offshore wind in New Jersey with the next one involving 1,200 MW scheduled for next year, and then another 1,200 MW in 2022. Gov. Phil Murphy has set a goal of 3,500 MW of offshore-wind capacity by 2030.

“Today’s historic announcement will revolutionize the offshore wind industry here in New Jersey and along the entire East Coast,’’ said Murphy in an announcement from his press office. “This award is a monumental step in making New Jersey a global leader in offshore wind development and deployment.’’

Liz Burdock, CEO and president of the Business Network for Offshore Wind, said the action by New Jersey will accelerate the development of the supply chain and begin the process of bringing offshore-wind manufacturing to New Jersey and the rest of the country.

Thomas Brostrom

Thomas Brostrøm, CEO of Ørsted US Offshore Wind

Thomas Brostrøm, CEO of Ørsted US Offshore Wind, agreed. “Wind will ensure that the state and its residents not only benefit from clean renewable power, but that they reap the rewards of being an early mover at scale in the offshore wind industry as it grows in the U.S.,’’ he said.

The Ocean Wind project, being developed with support from PSEG, the owner of the state’s largest utility, is projected to create 15,000 jobs and generate $1.17 billion in economic development for New Jersey, according to BPU president Joseph Fiordaliso. “I think New Jersey wound up in a very good place as far as price is concerned,’’ he said, following the unanimous vote.

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A big question: Who will get offshore wind energy to New Jersey customers?

As state BPU mulls three wind-farm projects, feds move to gauge industry interest in building a regional transmission system

Offshore wind
Photo credit Shaun Dakin/Unsplash

Tom Johnson reports for NJ Spotlight

The federal government wants to gauge the level of interest in developing a regional wind-power transmission system off the coasts of New Jersey and New York, a proposal kicked around in the past but never seriously pursued.

The U.S. Bureau of Ocean Energy Management announced late Monday it will publish a “request for competitive interest’’ in building a transmission line after a company, Anbaric Development Partners, LLC, requested a right-of-way to build a 185-nautical mile submarine version of such a system offshore.

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The announcement comes as the New Jersey Board of Public Utilities is scheduled Friday to decide which of three developers, or a combination thereof, will build up to 1,100 megawatts — and possibly more — of wind farms off the Jersey coast.

The action by the state board is significant in that it would mark the first approval of any offshore-wind capacity in New Jersey, a top priority of the administration of Gov. Phil Murphy, which aims to develop 3,500 megawatts of offshore-wind energy by 2030. The BPU expects to award additional contracts of 1,200 megawatts of capacity in additional solicitations in 2020 and 2022.

The three developers vying to build offshore wind farms are: Ørsted North America, a Danish developer proposing a project 15 miles off of Atlantic City; EDF Renewables/Shell New Energies, a French company seeking to develop a wind farm about eight miles north of there; and Equinor, a Norwegian firm pushing to build wind turbines 20 miles off the coast of Monmouth County.

Interest in future of wind power grows

There is intense interest in the BPU’s decision for many reasons, including whether it signals a major step forward in the governor’s goal to establish New Jersey as the pioneering hub of an emerging offshore-wind sector as states along the eastern seaboard race to develop wind farms. Only one small project is currently operating off Block Island in Rhode Island.

In recent days, the anticipation over which projects will be selected has led to speculation among clean-energy advocates that the state may expand the solicitation beyond 1,100 megawatts — a move that would allow the agency to award projects to more than a single developer.

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Rhode Island regulators approve 400-MW Revolution Wind power contract

By Michelle Froese reports for Windpower | May 29, 2019

Rhode Island regulators approved a 20-year power-purchase agreement with DWW Rev I, LLC – a joint venture of Ørsted U.S. Offshore Wind and Eversource – for the offshore wind energy that the Revolution Wind project will deliver to the state.

The Rhode Island Public Utilities Commission has unanimously approved Ørsted and Eversource’s long-term power contract with National Grid for 400 MW of clean energy from Revolution Wind.

Revolution Wind, Rhode Island’s second offshore wind farm, will generate enough clean energy to power more than 270,000 average Ocean State homes each year, about a quarter of the total electricity used by Rhode Islanders annually.

The project will save Rhode Island electricity customers millions of dollars in energy costs over the life of the project.

Revolution Wind, located in federal waters roughly halfway between Montauk, N.Y., and Martha’s Vineyard, Mass., is designed to serve as a regional energy center. Connecticut separately selected 300 MW from Revolution Wind to power that state.

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PSEG yet to decide about equity stake in offshore wind project

The BPU is reviewing applications for approval of plans to build an initial cluster of wind farms, to generate as much as 1.1 gigawatts of electricity

Tom Johnson reports for NJ Spotlight:

Offshore wind
Credit: Creative Commons

Public Service Enterprise Group appears to be keeping its options open on how much it will invest in the state’s ambitious efforts to be a leader in the offshore-wind industry that’s developing up and down the Eastern Seaboard.

In a filing with the Securities and Exchange Commission yesterday, the Newark company said it would decide by the second half of this year whether it would exercise an option to acquire an equity interest in Ocean Wind, one of three projects bidding for state approval to build up to 1,100 megawatts of offshore wind off the Jersey coast.

PSEG already has entered into an energy-management agreement with Ocean Wind LLC, a wholly owned subsidiary of Ørsted US Offshore Wind.

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The New Jersey Board of Public Utilities is currently reviewing the applications and expects to decide by July what projects will be selected to build the state’s initial cluster of offshore-wind farms. Besides Ørsted, the other developers include Equinor, which has a project off of Sandy Hook, and EDF Renewables, pushing an offshore-wind farm off of Atlantic County.

The BPU has given the developers the flexibility to build between 400 MW and all 1,100 MW of the power to be generated. Ørsted has indicated a preference for building all 1,100 MW, citing the benefits of economy of scale in driving down the overall cost. None of the applications, however, have been made public because the BPU says they contain proprietary information.

The energy management services presumably involve PSEG helping Ørsted connect the offshore wind farm, located about 15 miles off Atlantic City, to the land. PSEG has a potential lease of land for use in the project development, according to the filing.

Many irons in the fire

The Murphy administration is banking on building 3,500 MW of wind capacity off the coast by 2030, a key component of its overall goal of having 100 percent of New Jersey’s power needs delivered by clean energy by 2050.

Public Service Electric & Gas, a subsidiary of PSEG, has been the most aggressive utility in New Jersey in seeking to align itself with Murphy’s clean-energy goals. It has a $2.5 billion energy efficiency filing now being reviewed by the BPU.

Other PSE&G filings yet to be looked at by the agency are to install smart meters in homes ($900 million); to build out the infrastructure for electric vehicles ($364 million); and for energy storage ($130 million). The utility also is seeking $2.5 billion to strengthen its gas and electric grids.

PSEG has been more circumspect about its intentions on offshore wind, likely to be the most expensive of the state’s clean-energy ventures, leading to billions of dollars of investments, much of it subsidized by utility customers.

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Danish wind company wants closed N.J. power plants

B.L. England generating station


By 
The Associated Press

There may be new life yet for two New Jersey power plants set to be decommissioned.
The Press of Atlantic City reports offshore wind company Orsted is eying B.L. England and the Oyster Creek Generating Station as part of a plan to connect its turbines to the energy grid.
Orsted says the project could produce up to 1,100 megawatts of energy and bring 100 permanent jobs during the wind farm’s expected 25-year life cycle. An Orsted vessel will study the coast to see if interconnection is possible.
The Oyster Creek nuclear plant shut down in September, and the coal-fired B.L. England is set to close in May.
B.L. England is also part of a proposed natural gas pipeline. Environmental groups say they hope the wind project prevails over the pipeline.
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Three offshore energy vendors competing for NY contract

© Dawid S Swierczek / Adobe Stock
                                                                                           © Dawid S Swierczek / Adobe Stock
Eric Haun is editor of Offshore Engineer
Equinor, Vineyard Wind and Ørsted are among the offshore wind players who have submitted separate bids to supply New York with power from planned projects off the coast of Long Island.
The bids come in response to New York’s 800 MW procurement, its first formal solicitation targeted the developing U.S. offshore wind industry. New York is expected to announce the chosen supplier(s) later this spring.
Equinor’s 80,000-acre Empire Wind project site is located between 14 and 35 miles south of Long Island in the New York Bight, with a potential capacity of up to 2,000 MW of renewable power.
Vineyard Wind’s Liberty Wind proposal includes 400, 800 and 1,200 MW project size options and would be located in federal waters 85 miles away from the nearest New York shore.
Ørsted, alongside partner Eversource Energy, has submitted a proposal for the Sunrise Wind project which would be built more than 30 miles east of Montauk.
New York Governor Andrew Cuomo has stated it is his objective to eventually develop 9,000 MW of offshore wind energy to supply New York.

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NJ in sweet spot for offshore energy investments

At NJ Spotlight offshore-wind roundtable, advocates help chart a path to administration’s aggressive goal — 3,500 megawatts of capacity by 2030

liz burdock

Liz Burdock, president and CEO of the Business Network for Offshore Wind
Tom Johnson reports
for NJ Spotlight:
By 2030, more than 10,000 megawatts of electricity could be produced from wind turbines located along the Eastern Seaboard, with New Jersey well-positioned to reap the economic benefits associated with this emerging industry, according to offshore wind advocates.
The Murphy administration’s aggressive goals to build more than one-third of that projected capacity make it an attractive place to invest and grow the sector, proponents said at an NJ Spotlight event on the state’s energy future in Hamilton on Friday.
Offshore wind is viewed as a key component of Gov. Phil Murphy’s plan to have 100 percent of New Jersey’s power come from renewable energy by 2050. By 2030, the state hopes to develop 3,500 megawatts of offshore wind capacity; it plans to decide next spring who will build an initial 1,100 megawatts, followed by two additional solicitations of 1,200 megawatts each in 2020 and 2022, respectively. Only one offshore wind farm in Rhode Island is currently operating in the United States.

Delivering transparency and a timeline

“You’ve done everything right to attract the industry to the state,’’ said Liz Burdock, president and CEO of the Business Network for Offshore Wind, a panelist at the roundtable.
“You have given them scale; you have given them transparency, and you’ve given them a timeline. What I think you will see is an enormous amount of job growth and investment in the state.’’
Thomas Brostrøm, president of Ørsted North America, a leading offshore wind developer with projects in six states, said his company is excited about developments in New Jersey and the wider Eastern Seaboard relative to renewables and offshore wind. “We basically can see 10,000 milliwatts built essentially over the next 10 years, and that is very, very big,’’ he said.
If all those projects get built, it could create 96,000 jobs in the region, Burdock said. “It’s a big pie — there is a lot to go around,’’ she added, especially if states cooperate in growing the sector instead of competing against one another.

High cost of doing nothing

Board of Public Utilities President Joseph Fiordaliso

Joseph Fiordaliso, president, New Jersey Board of Public Utilities
But Board of Public Utilities president Joseph Fiordaliso, whose agency is overseeing the state’s offshore wind plan, noted that prices are going down in a keynote to kick off the event. “Can we afford not to spend the money?’’ he asked, referring to offshore wind’s importance to mitigating the effects of climate change.
Others argued the costs for offshore wind, much like those for solar, have declined dramatically in the past few years. “The U.S. and New Jersey has hit the timing absolutely perfect,’’ Brostrøm said, noting costs have dropped by more than 60 percent.
The state has long been targeted as one of the best places to locate offshore wind farms, largely because of bountiful wind resources off the coast and a relatively shallow continental shelf. The ocean off New Jersey also has the most variable temperatures from summer to winter in the world, a big factor in its wind resources, according to Josh Kohut, an associate professor at the Center of Ocean Observing Leadership at Rutgers University.



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NJ to solicit off-shore wind energy applications as developers play beat-the-clock on federal subsidies

Offshore wind

Credit: Creative Commons
Tom Johnson reports for NJ Spotlight:



The Murphy administration will solicit applications for offshore-wind farms this fall, an important step that could help developers qualify for lucrative tax credits to defray the cost to consumers.



The New Jersey Board of Public Utilities is expected to open a window to begin accepting applications at its monthly meeting Monday to build up to 1,100 megawatts of offshore-wind farms off the Jersey coast.



The move could mark the most significant step the administration has taken to implement its ambitious goal to develop 3,500 MW of offshore-wind capacity in the state — the most aggressive target in the nation.



The initial solicitation is critical because offshore-wind developers have spent months pressing the administration to speed up its review process, so they could qualify for federal tax credits to reduce project costs by 10 percent. The credits expire at the end of 2019.



“What the administration has demonstrated is a commitment by action to get the results they want,’’ said Scott Weiner, an attorney representing Deepwater Wind, which is seeking to build an offshore wind farm off Cape May.



Developers are happy



Fred Zalcman, head of government affairs for Ørsted, which has leases off South Jersey, agreed. “We’re pretty pleased with it. It’s a workable formula.’’



Precise details about the process, however, were not forthcoming. Peter Peretzman, a spokesman for the BPU, said only “I can’t go beyond the press release,’’ when asked when the solicitation would occur.



In Gov. Phil Murphy’s announcement, delivered in a press release at the Global Action Climate Summit in San Francisco, he called on the BPU to issue two additional 1,200-MW solicitations in 2020 and 2022, to achieve his 3,500-MW capacity target.



“Every day that we don’t act to reverse the effects of climate change is another day that we abandon our economic, social and moral obligation to create a safe, clean environment for future generations,’’ Murphy said in the statement.



Environmentalists welcomed the governor’s move to set a time frame for achieving the 3,500-MW goal by 2030.



“Gov. Murphy is moving to make New Jersey a national leader in offshore wind,’’ said Doug O’Malley, director of Environment New Jersey. “This is a change from the Christie era.’’



Electric customers to bear most of the costs



Still, business interests are concerned about the projected costs of offshore wind, which largely will be borne by electric customers in New Jersey — already saddled with some of the highest energy bills in the nation.



The BPU is simultaneously moving to adopt a new rule that would establish a funding mechanism to funnel ratepayer funds to the offshore-wind farms to help make them economically viable. By most estimates, those projects will cost more than $1 billion.



Consumers in the state are facing huge increases in utility bills as companies move to upgrade aging power grids and make systems more resilient to extreme storm events from climate change.



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As Christie blows away, wind energy may re-emerge in NJ

Dino Grandoni reports for the Washington Post:
For years, New Jersey’s blustery Republican governor, Chris Christie, has slowed efforts to cultivate wind farms off the state’s coast, wind developers say.
 
In 2010, during his first term, Christie signed a landmark wind energy law designed to encourage development of the renewable resource off the state’s gusty shore. But the public utility board controlled by Christie appointees never fully implemented a plan meant to incentivize that development. In New Jersey, turbines off the seaside horizon remained a mirage that never materialized.
New Jersey residents just elected a Democrat to replace Christie — one with an ambitious alternative energy plan. 
One of the biggest energy-related consequences of the 2017 election is the gust of life breathed into offshore wind development in the densely populated and energy-hungry Garden State.
Gov.-elect Phil Murphy wants New Jersey to get all its energy from “clean” sources by the middle of the century.
To do so, Murphy promised to rejoin the Regional Greenhouse Gas Initiative, under which nine East Coast states cap and trade carbon dioxide to reduce climate-warming emissions from the power sector. And he set what his campaign calls “the most ambitious offshore wind target in the country” by promising to bring 3,500 megawatts of offshore wind power online by 2030.
Wind companies itching to build off the Jersey Shore are pleased with the prospect.
Murphy’s “got a really good handle on this industry, not only from an economic perspective but from an environmental one as well,” said Paul Rich, director of project development at US Wind. “I think he’s poised to be bold where others have gotten cold feet.”
“We are hopeful that a Murphy administration will continue to move New Jersey forward in the development of a robust offshore wind industry,” said Thomas Brostrom, the North American president of Orsted (formerly DONG Energy).
Although land-based wind energy has taken off in the United States — pushing wind-generating capacity above that of hydropower by the end of 2016, more than any other renewable source — the nation has built only one commercial offshore wind farm, off the coast of Rhode Island’s Block Island, despite the federal government awarding nearly a dozen commercial offshore wind leases for locations off the coasts of Massachusetts, Maryland and Virginia.
With Christie leaving office, New Jersey could be next. Orsted, a Danish firm, along with US Wind, a subsidy of the Italian energy company Renexia, each hold federal leases to build off New Jersey. Another firm, Fisherman Energy, has proposed to build a wind farm in state waters near Atlantic City, as well.
While declining worldwide, the upfront costs of offshore wind are still much higher than onshore, and require more subsidization from federal and local governments to make financial sense to investors.
Until it expires in 2019, offshore wind developers can take advantage of an investment tax credit from the federal government. For seven years, New Jersey has had a law requiring the state to grant its own subsidy, too.
“We’re going to work to make New Jersey No. 1 in offshore wind production,” Christie said in 2011, not long after signing that measure.
But the New Jersey Board of Public Utilities (BPU), whose chairman is chosen by the governor, never finalized rules for that subsidy.
Christie “realized that he needed to jettison anything that looked moderate” in order to win over conservatives nationwide “when people started looking at him as president timber,” said Jim Lanard, chief executive of ‎‎Magellan Wind.
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