June 30, 2021
the EDF / Shell Atlantic Shores Offshore Wind and a second phase of Ørsted Project Ocean Wind was awarded a combined capacity of 2,658 megawatts on Wednesday by utility regulators in New Jersey, what state officials are calling the largest US combined award to date.
State Board of Public Utilities vote brings the state’s total planned capacity to over 3,700 MW, nearly half of Governor Phil Murphy’s target of 7,500 MW by 2035 .
The board has allocated 1,510 MW to Atlantic Shores and 1,148 MW to Ocean Wind II for their neighboring federal leases off Long Beach Island and Atlantic City, NJ.
The two developers will build new manufacturing facilities at the planned New Jersey wind port at the mouth of the Delaware River in Salem County, and use a foundation fabrication facility upstream from the Port of Paulsboro, officials said. of State. These projects are expected to be commissioned from 2027 to 2029.
“Combined, the two projects are expected to create 7,000 full-time or part-time jobs throughout the development, construction and operation phases of the projects. This gives about 56,000 full-time equivalent job-years, as some jobs will be of shorter duration and others will last for many years, ”according to a BPU statement. “They will also generate $ 3.5 billion in economic benefits and supply 1.15 million homes with clean energy. “
The BPU deal requires developers to contribute $ 10,000 per megawatt of capacity – about $ 26 million in total – to fund environmental research initiatives and the monitoring of wildlife and fisheries in the region, with the money. administered by BPU and State Department of Environmental Protection.
Pressure from the Murphy administration to advance offshore wind sparks deep skepticism in the state’s commercial fishing industry and seaside communities over concerns over potential effects on fishing and tourism coastal.
After the state legislature passed a bill giving the BPU final authority to approve onshore wind power cable routes, the Ocean City Council passed a resolution on June 24 protesting the move, complaining about the bill if enacted by Murphy “would seriously affect the ability of local governments to exercise rule of origin over the offshore wind farm project by eliminating good faith negotiations, which clearly positions Ørsted,” a foreign entity, in an advantageous negotiating position at the expense of coastal municipalities.
State officials highlight the potential of the project to make the southern counties of the state a mid-Atlantic center for the wind industry.
The two developers will use the New Jersey wind port to assemble nacelles – the generator housings atop turbine towers that convert mechanical energy from rotating turbine blades into electrical energy. Atlantic Shores to work with turbine maker MHI Vestas while Ocean Wind will collaborate with GE.
“GE’s nacelle assembly plant will attract contractors to the state and therefore more manufacturing jobs,” according to a statement from Ørsted. “Nacelles are one of the most complex parts of a wind turbine, including the generator, transmission and brake assembly, controllers, transformer and switchgear. “
Both projects will use the Port of Paulsboro foundation fabrication plant, in conjunction with a steelmaker EEW.
In early June, the Business Network for Offshore Wind announced its partnership with Atlantic Shores to use the Direct connection, an exclusive new platform that enables businesses to find location-specific supply chain suppliers. This gives developers “access to hundreds of New Jersey-based suppliers for the construction of its offshore wind project,” according to the network.
Direct Connect provides users with information on nearly 2,000 companies interested and able to provide goods and services to the US offshore wind industry. Subscribers can create unique searches for businesses based on the type of services or products they provide, their location, and even the types of certifications a business holds.
“The expansion of New Jersey’s offshore wind industry is a major component in achieving our goal of 100% clean energy by 2050, while providing significant economic opportunities and benefits for our state,” said Murphy. “By leveraging a whole-of-government approach and the strengths of our state, this award ensures that our investment in clean energy is also an investment in our communities, and will generate well-paying union jobs and bring valuable investments to New Jersey. . .
“We have a unique opportunity to establish New Jersey as the epicenter of a new industry that will provide tens of thousands of jobs and billions of dollars in economic benefits when we need them most,” said BPU President Joseph L. Fiordaliso.