Rhode Island Wind Farm Proposal Links Port and Shipbuilding Investment
As the competition continues among the major developers of offshore wind projects to win approval for new projects, the companies are seeking to sweeten the offering by highlighting the broader financial impact and with promises of investments in ports, shipbuilding, and manufacturing if they are selected. In the latest example, Ørsted and Eversource, which already have a partnership developing two wind farms off the Rhode Island coast, are seeking to sweeten their offer to win the state’s latest wind solicitation.
“We’re answering Rhode Island’s call for more offshore wind energy with a proposal that builds upon the groundwork we’ve laid in the Ocean State with our significant investments in port infrastructure, workforce training, and the local supply chain,” said Joe Nolan, Chairman, President and CEO of Eversource Energy. “Our latest proposal harnesses the unmatched combination of our onshore, regional transmission expertise together with Ørsted’s considerable offshore capabilities.”
The companies’ joint venture is proposing an 884-megawatt Revolution Wind 2 project that would be an additional wind farm within their existing federal lease which is being used to develop Revolution Wind 1. The companies hold a lease for an area about 15 miles south of Rhode Island which will provide a total of 704 MW of wind energy from the project that is already underway. Construction is expected to start later this year and when completed in 2025 approximately 400 MW will be supplied to Rhode Island with the remaining 300 MW going to neighboring Connecticut.
Revolution 1 will be the state’s first utility-scale offshore wind farm and the companies are already investing in the state to support the development of this project as well as South Fork Wind, which is also south of Rhode Island. Due to start operations this year, the 132 MW project which has 12 turbines however will supply New York with power.
Ørsted and Eversource are promising more than $2 billion in direct economic impact to Rhode Island if the state approves the second phase project. Including further investments in port improvements and shipbuilding. They are saying if they are selected for Revolution Wind 2 they will invest $35 million to realize Quonset Development Corporation’s vision for a Regional Offshore Wind Logistics and Operations Hub at Quonset Point. Revolution Wind 2 they report would enable the construction of two new crew transfer vessels in Rhode Island to serve Ørsted’s U.S. portfolio, on top of the five already being built by Blount Boats and Senesco Marine as part of the Revolution Wind investments while also saying they are “planning other shipbuilding investments in Rhode Island to support the industry.”
Ørsted says it will open a new U.S. Engineering Hub in Rhode Island, creating roughly 75 new local engineering jobs in a state-of-the-art facility that will serve as an Ørsted engineering center of excellence in the U.S. This would be in addition to $1 million invested in a training partnership and the development of the regional offshore wind foundation component manufacturing facility at ProvPort, which is building the foundation components for South Fork Wind.
The companies point to all of their efforts saying they are ready to help Rhode Island continue to develop its homegrown offshore wind supply chain. They point to the state’s heritage of having in 2016 commissioned the first five 6 MW offshore wind turbines to replace the five diesel generations on Block Island. That project powers 17,000 homes with 10 percent of its power meeting Block Island’s needs and the remainder going onshore in Rhode Island.
If chosen for the new project, the joint venture which was established in 2016, says it would help to continue to build the American offshore wind supply chain and support well-paying jobs and industry for Rhode Island.
Shell Funds Offshore Wind Research at Former Avondale Shipyard Site
Louisiana-based company Gulf Wind Technology has secured funding from Shell to set up a wind power research and training facility at the former Avondale Shipyard site, a storied location which is ready for redevelopment.
With $10 million in backing from Shell, Gulf Wind plans to hire 30 people and found a new hub for offshore wind R&D in the region.
Gulf Wind has experience in improving the economic performance of operational wind farms and conducting research on rotor technology, primarily for onshore applications. It is headquartered at Avondale, with 30,000 square feet of workspace and access to 1.5 million additional square feet for fabrication. The new R&D program will be an expansion of its activities.
The company says that an investment in R&D for designing custom rotors - its primary area off experience - will be useful when it comes to adapting offshore turbines to the unique conditions in the Gulf.
“Wind resources in the Gulf region are more variable than what you find on the east coast where most of U.S. offshore wind development activity is currently happening,” said James Martin, GWT's CEO. “Seasonal hurricane conditions and moderate average wind speeds create a situation that requires a novel approach to the application of technology and the framework in which it is both developed and demonstrated. The Shell Gulf Wind Technology Accelerator program has been specifically created to address and fulfill this need."
The first demonstrator turbine at the site is expected to be ready as early as next year. In addition to its R&D work, the program weill also house an offshore wind workforce education and training initiative.
To get the project built in Avondale, the state of Louisiana offered Gulf Wind Technology a workforce development incentive package, including a $375,000 award to support site infrastructure improvements. The company is also expected to participate in two state tax exemption programs.
The news is a big boost for the former Avondale Shipyard, renamed Avondale Global Gateway under the ownership of terminal operator and stevedoring company T. Parker Host.
"When we took the risk of transforming Avondale shipyards, this is exactly the type of progress and partnership we envisioned. With hundreds of acres of laydown space for equipment like offshore wind blades, our site is the ideal location for this type of groundbreaking investment," said T. Parker Host CEO and President Adam Anderson. "We had a vision of Avondale Global Gateway becoming the first offshore wind hub on the Gulf Coast and with the launch of this partnership, we are quickly making this a reality."
Last month, the Port of South Louisiana agreed to buy and further redevelop the Avondale site, and the port's management welcomed the news that Gulf Wind will be expanding.
"Today’s announcement from Gulf Wind Technology and Shell is confirmation that Avondale is open for business and attracting commerce and investment from the world’s most recognizable organizations," said Port of South Louisiana CEO Paul Matthews. "This is just the beginning. We look forward to fostering more development and job creation as Avondale Global Gateway’s new owner."
T. Parker Host purchased Avondale from Huntington Ingalls in 2018 for $60 million and invested over $100 million more in its redevelopment. It has agreed to sell the site to the Port of South Louisiana for $445 million, reflecting upgraded expectations of the complex's future business opportunities.
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