California’s Port San Luis eyes its offshore wind options

The Port San Luis Harbor District has entering into a project evaluation agreement with offshore wind port developer Clean Energy Terminals (CET) to explore the feasibility of an offshore wind operations and maintenance (O&M) port facility in California’s San Luis Obispo Bay.

The facility could be utilized by multiple wind projects located in federal waters off California’s Central Coast. If an O&M facility is found to be feasible, the agreement sets out a pathway for the parties to negotiate a lease option and subsequent long-term lease for the project’s development and operations.

Project evaluation is expected to take between six and 18 months, with development of an O&M facility taking six-to-eight years in total, subject to permitting and the timing of California’s offshore wind projects.

Offshore wind is a multi-billion-dollar maritime energy industry that has experienced significant growth internationally and on the U.S. East Coast. It is now set to emerge off the California coast as part of the state’s effort to transition to zero-emission electricity generation by 2045.

According to the harbor district and CET, recent port studies and public feedback have suggested that larger offshore wind-related port facilities, such as the staging and integration ports under development in Humboldt Bay and Long Beach, are not well-suited to the Central Coast. Instead, smaller facilities such as O&M ports, which are typically no more than 5 acres in size and support vessels that come into port approximately once every other week, could be a good fit for the region.

“The harbor district’s mission is to support commercial, recreational, and coastal-related activities, and to this end, offshore wind represents a once-in-a-generation opportunity for San Luis Obispo Bay that we simply cannot overlook,” said Suzy Watkins, harbor director of the Port San Luis Harbor District.

Port San Luis has a long history as a commercial and energy port, including goods and passenger movement through Harford Pier, petroleum product export through the facility now known as Cal Poly Pier, and more recently offloading components for Diablo Canyon power plant.

“The commercial and energy-related activities of the last century led to infrastructure investments that harbor users still enjoy today, including Harford Pier and the federal breakwater. Offshore wind represents this century’s opportunity to invest in local maritime projects that will ensure the Harbor’s role as a critical economic engine in SLO County for generations to come,” Watkins continued.

“Today’s announcement is Day 1 of a thoughtful and thorough evaluation of the feasibility of an O&M port in San Luis Obispo Bay, and if feasible, what a facility could look and feel like. This process will include meaningful engagement with local communities, including residents of Avila Beach, local Tribal governments which have a deep historic association with the Bay, local advisory groups such as the Avila Valley Advisory Council, the commercial fishing community here in Port San Luis and in the region more broadly, and other local ocean users like the Surfrider Foundation,” said Port San Luis Harbor Commission president, Bob Vessely.

“We welcome the partnership with Clean Energy Terminals and are excited by the potential for Port San Luis to participate in this new economic opportunity for our County,” Vessely continued. “Entirely new maritime industries don’t come around often, and when they do it’s incumbent on us, as custodians of the harbor, to look at them seriously and, if viable, to enable our community to access those opportunities.”

“We believe that, at its core, infrastructure development is economic development. Ports are the pivot-point where investments in offshore wind generation are transformed into family sustaining clean energy careers, new supply chain investments for Californian communities, and growth opportunities for small and diverse Central Coast businesses,” said Brian Sabina, chief executive of CET.

“CET is committed to developing projects the right way,” he continued. “To us that means projects that reflect the values of host communities and are environmentally responsible. It also means delivering projects in a way that puts safety first and ensures long-term sustainability. In partnership with the Port San Luis Harbor District, we are evaluating whether an O&M facility is technically feasible and, if so, how it can be most responsibly delivered.”

According to an Oceantic Network report released in 2023, the U.S. needs to invest at least $36 billion in new and upgraded offshore wind port infrastructure over the next ten years across approximately 100 port facilities. The Californian Energy Commission estimates that $11-12 billion is required to upgrade port infrastructure across California to meet the state’s 25 GW by 2045 offshore wind goal. Port San Luis has been identified by multiple independent studies as a high-potential location for O&M facilities.