Sunday, September 12, 2021

New $350M N.J. port touted as next step for state to lead in wind-power production

Updated: Sep. 10, 2021


U.S. Secretary of Labor, Marty Walsh, and NJ Governor Phil Murphy stand near the site of the New Jersey Wind Port in Lower Alloways Creek, NJ on Thursday, September 9, 2021
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Dave Hernandez | For NJ Advance Media for NJ.com

By Bill Duhart | For NJ.com

Gov. Phil Murphy leaned in as he shook hands with state Senate President Steve Sweeney on Thursday morning and said, “Big win for the home team.”

Sweeney returned the grin and moments later the two readied themselves for their real “grip and grin” moment.

They were at a groundbreaking for the New Jersey Wind Port in Lower Alloways Creek, Salem County. The pair touted the project as a way to position the state as a major offshore wind hub and staging place for assembly and transport of 900-foot structures needed for each ocean wind turbine. The state Economic Development Authority has estimated the total cost of construction would be between $300 and $400 million.

New Jersey has already approved the Ocean Wind I development of nearly 100 of these giant wind turbines to be installed 15 miles off the coast of Ocean City, Cape May County. At least two more wind farm projects are in development and moving through the legislature, and other states along the East Coast are also following suit.

The Lower Alloways site is slated to be an assembly point for the windmill tower, which also includes rotor, nacelle and blade. The structures are moved in a vertical position, are too heavy for land transport and must be able to clear power lines and bridges. That was one reason the remote site in Lower Alloways Creek, at the mouth of the Delaware Bay, was selected, Murphy and Sweeney said.



Governor Phil Murphy speaks with Senator Steve Sweeney, (D), in Lower Alloways Creek, NJ on Thursday, September 9, 2021. Officials gathered to break ground on the New Jersey Wind Port in Salem County.
Dave Hernandez | For NJ Advance Media for NJ.com

But Assemblyman John Burzichelli, who represents the 3rd legislative district, along with Assemblyman Adam Taliaferro and Sweeney in the Senate, all Democrats, provided some extra insight into just how hard fought the battle to open the port was.

“We didn’t get here by accident,” Burzichelli said to an assembled crowd of about 100 outside of the PSEG Nuclear’s Hope Creek Generating Station where the port will be built. “This didn’t just fall out of the sky. It came together almost in a fist fight at times.

“But it came together. Some of those meetings were uncomfortable. And some of the words that were exchanged didn’t have more than four letters. But they were effective. It was a language that broke down international barriers.”


Assemblyman, John J. Burzichelli (D), thanked other officials for their perseverance in creating the New Jersey Wind Port in Lower Alloways Creek, NJ on Thursday, September 9, 2021.
Dave Hernandez | For NJ Advance Media for NJ.com

The Danish power company Orsted has won approvals to build Ocean Winds I and II and another company has approval for a project called Atlantic Shores. Ocean Wind II and Atlantic Shores were approved by the state Board of Public Utilities in July. The projects are expected to produce 2,658 megawatts of clean power by 2029. The approvals were the single largest award of offshore wind capacity in the nation to date, and it more than triples the Garden State’s commitment to the budding industry.


Ocean Winds I was approved in 2019 and will generate 1,100 megawatts of electricity when it becomes operational in 2024.

All of the projects have committed to using the New Jersey Wind Port and the Port of Paulsboro, which will assemble the monopile poles for the turbines. That port, just up the Delaware River from Lower Alloways Creek, also in Sweeney, Burzichelli and Taliaferro’s district, began renovations several years ago to build reinforced piers to handle heavy break bulk cargo like this.

“People from different parts of the world understood that when you said something in New Jersey, it meant a little something different than somewhere other than New Jersey,” Burzichelli told the crowd which responded with a laugh.

Federal Department of Labor Sec. Marty Walsh was also on hand Thursday for the groundbreaking. He hailed a project labor agreement to use union labor at the port and said President Joe Biden supports the alternative energy push in New Jersey, and an infrastructure bill making its way through Congress will help fund more projects like this.

The state has locked in more than 3,700 megawatts of future power from offshore wind, enough to power roughly 1.5 million homes according to the BPU. The two projects are expected to create 7,000 new jobs, and bring $3.5 billion in benefits to New Jersey’s economy.

Construction on the wind port is expected to begin this year and start operations no later than early 2024, a state news release said.

Background Information previously reported by NJ.com is included in this report.

America’s First Offshore Wind Port Breaks Ground

September 10, 2021, by Adnan Durakovic

Construction has started on the New Jersey Wind Port, the first facility purpose-built for staging, assembly, and manufacturing activities related to offshore wind projects on the US East Coast

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Source: Governor Phil Murphy/Twitter

Earthworks will begin on-site in the coming weeks and major construction is due to start in December 2021 with the goal of opening the port in winter 2023/2024.

The New Jersey Wind Port will be located on an artificial island on the eastern shores of the Delaware River, southwest of the City of Salem. The site was selected in June 2020 after a 22-month assessment process, including engagement with industry, government, and environmental stakeholders and the NJEDA has been preparing site and finalizing design since summer 2020.

The groundbreaking marks the next step in developing the New Jersey Wind Port as a hub for offshore wind. In June, New Jersey’s Governor Phil Murphy signed the Fiscal Year 2022 state budget, which included USD 200 million allocated for the development of the New Jersey Wind Port; this is in addition to USD 13 million from the New Jersey Board of Public Utilities and USD 44 million in partnership with New Jersey Department of Transportation for dredging. In July, the NJEDA announced AECOM-Tishman as the Construction Manager (CM) for the project.

In addition to the groundbreaking ceremony, the event also included the signing of a project labor agreement (PLA) for the project between AECOM-Tishman and the United Building Trades Council of Southern New Jersey AFL-CIO.

The New Jersey Wind Port has the potential to create up to 1,500 manufacturing, assembly, and operations jobs, as well as hundreds of union construction jobs in New Jersey. Manufacturing and marshalling projects supported by the Wind Port are expected to drive economic growth in Salem County, in South Jersey, and throughout the state.

Offshore wind is a central component of New Jersey’s Energy Master Plan to achieve 100 per cent clean energy by 2050. As part of that plan, New Jersey has committed to producing 7,500 megawatts of offshore wind energy by 2035.

“Investing in offshore wind is vital to building a stronger, greener economy that creates high-paying jobs to support a robust recovery from the economic impacts of the COVID-19 pandemic and paves the way for long-term, equitable growth,” said Governor Murphy.

“The New Jersey Wind Port will create thousands of high-quality jobs, bring millions of investment dollars to our state, and establish New Jersey as the national capital of offshore wind.”

Offshore wind projects slated for development along the US East Coast are expected to require more than USD 150 billion of capital investment by 2035, and the American offshore wind industry is projected to create more than 83,000 jobs, mostly along the Northeast corridor.

Long term, the New Jersey Wind Port has the potential for over 150 acres of manufacturing parcels and hundreds of manufacturing jobs. Several potential tenants have already expressed interest in the site, including Ørsted and Atlantic Shores through their winning bids in NJBPU’s recent offshore wind power solicitation.

“We are pleased to partner with New Jersey to help deliver its clean energy goals, both to fight climate change and to create good-paying union jobs for workers today,” said Madeline Urbish, Head of New Jersey Government Affairs and Policy for Ørsted.

“The New Jersey Wind Port is a powerful example of how offshore wind is helping to build a new U.S. manufacturing industry that will support clean energy development throughout the region and establish the Garden State as a leader.”

Both offshore wind developers indicated they intend to build their projects at the Wind Port. The winning bids also included proposals to partner with turbine manufactures GE and Vestas to build nacelle assembly facilities at the port. The NJEDA will be launching an additional tenant selection process in the coming weeks to negotiate agreements with these potential tenants.

“Offshore wind is the energy source of the future and Atlantic Shores is excited to work with Governor Murphy to grow the industry in New Jersey,” said Atlantic Shores Development Manager Doug Copeland.

“The New Jersey Wind Port is a much-needed infrastructure asset that will play a key role in achieving our upcoming 1,500 MW project and will pave the way for the long-term growth of offshore wind up and down the East Coast.”

The NJEDA is also working with AECOM-Tishman to ensure at least 25 per cent of subcontractors for the port construction are small businesses and at least 15 percent are women-, minority-, or veteran- owned. The project also includes worker diversity goals of 18 per cent people of color and 6.9 per cent women.

“With increasing frequency, New Jerseyans are feeling the horrendous impacts of climate change and extreme weather,” PSEG Chief Operating Officer Ralph LaRossa said.

“To protect our homes, businesses and the environment, ramping up clean energy generation, reducing carbon emissions and storm-hardening our infrastructure are imperative and there’s more that can be done. PSEG is proud to be a partner in Ocean Wind 1, and we’re especially honored to be a part of the development of the New Jersey Wind Port, providing a foundation for the formation and expansion of offshore wind in the mid-Atlantic region. With today’s groundbreaking, New Jersey is taking a giant step toward bringing new industry to the region, creating jobs and supporting the economy.”

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