Investments in Connecticut, Rhode Island, and New York advance region as industry hub.
Wind energy is about to take off in a big way in the northeast United States, and owners and operators of port assets are readying their facilities to participate in the operations of this growing industry in ways that go beyond handling cargo and logistics. A trio of ports in New England and New York are poised to function as hubs for the wind energy industry—and that means assembling components and providing other operational support, and not just processing freight.
The growth of this new industry is likely to spread its benefit widely across the region and beyond, but three smaller harbors—New London, Connecticut; Davisville, Rhode Island; and Port Jefferson, New York—are pushing to get their piece of the action.
Wind energy is not new to the region, but the latest developments—which involve, among other things, a joint venture between an experienced Danish offshore operator and a major New England power company plus aggressive plans among state governments to increase reliance on wind energy—indicate that wind energy installations will be upscaled in a big way regionally in the near future. New York State has a goal to generate 9,000 megawatts from offshore wind power by 2035. Proposals in Connecticut call for anywhere from 1,000 to 2,000 megawatts of electricity from offshore wind farms in the next decade. Rhode Island’s governor has a clean energy goal of 1,000 megawatts by 2020.
The first commercial offshore wind farm in the United States—the Block Island Wind Farm, which opened for operation in December 2017—is in the northeast, three miles off Block Island, Rhode Island, and equidistant between Narragansett, Rhode Island, and Montauk, New York. The private project, developed by Deepwater Wind with an investment of $300 million, includes five turbines with a capacity of 30 megawatts.
In February of this year, Ørsted, a global leader in offshore wind based in Denmark, and Eversource, New England’s largest energy company, announced a 50-50 partnership for several regional offshore wind assets. Eversource paid $225 million for its half interest in Ørsted’s Revolution Wind and South Fork Wind Farm projects, as well as a 257-square-mile tract off the coasts of Massachusetts and Rhode Island. The first two projects are subject to permitting and final investment decisions but, if approved, could enter operation in 2022 and 2023.
A key challenge for the U.S. offshore wind industry is to develop efficient supply chain networks and port infrastructures to accommodate the challenging cargo requirements of these projects. A 2017 report from the University of Delaware’s College of Earth, Ocean, and Environment, concluded that it’s cheaper and quicker to install an offshore wind farm by building it at port than at sea—especially with the development of the bigger and more powerful wind turbines that will soon be deployed. It’s likely this is the approach that’s going to be taken by Ørsted-Eversource, making the robustness of port and associated infrastructures that much more important.
In New London, the State Pier is the likely focus of wind energy activity but it needs major investments to make that happen. The State of Connecticut recently committed $30 million for renovations, including upgrades to cargo-handling capabilities, while the wind power industry has pledged $22.5 million. Ultimately, $100 million will be needed for a complete upgrade, according to the Connecticut Port Authority. Gateway Terminal, Connecticut’s largest port terminal operator, reached a 20-year agreement with the CPA at the beginning of 2019 and started overseeing operations at State Pier on May 1, after outbidding the Montreal-based Logistec, which ran the pier for the past 20 years.
“We are looking at New London State Pier as being a world-class installation harbor for offshore wind projects coming down the pike,” said Ryan Chaytors, an Ørsted project development manager. “We’re not talking about a two- or three-year period. This could be 15 to 20 years.”
“When you look at the proximity where much of offshore wind will be developed,” added Lee Olivier, an Eversource executive vice president, “it’s a good opportunity to bring the future into New London.” The State Pier offers a deepwater port with “easy in, easy out access,” Olivier added.
Ørsted and Eversource have pitched a project that would bring an operational facility to Port Jefferson, New York, on Long Island’s north shore, to support Sunrise Wind, located 30 miles east of Montauk Point, and part of their joint venture. The idea is to build an operation and maintenance hub that would include wharfage for a 250-foot service operation vessel, as well as a warehouse and an office facility. The vessel would house workers as they take extended trips out to the wind farm and would return to shore periodically to resupply and swap out personnel. Sunrise Wind has yet to receive the go-ahead from the New York State Energy Research and Development Authority for the 800-megawatt offshore project.
Quonset Business Park and its Port of Davisville in North Kingstown, Rhode Island, played a key role in the development of the Block Island project. Wind turbine components arrived at the port, including steel jackets and 28 miles of cable.
Steven King, Quonset Development Corp.’s managing director expects to get more wind business as additional offshore wind tracts are developed. “The ongoing renovations at Pier 2 will be instrumental in creating the necessary infrastructure for continued offshore wind efforts,” he said.
The state is executing a $90-million modernization plan for Pier 2, which will increase the port’s capacity with a third berth. These updates, according to King, will enable Davisville to expand its role in the wind industry.
“With several offshore wind projects in the late stages of approval,” he said, “Quonset is positioned to be the state’s leader in clean energy by facilitating the construction of these multi-billion dollar projects. Access to our world-class infrastructure, qualified workers and the Port of Davisville streamline the process for wind energy companies looking to expand to the northeast.”
And, with words that should resonate with facilities around the country, King added: “Modern ports are the key to growing the industry.”
