New Jersey makes two major offshore wind awards

Image: Siemens Gamesa

The New Jersey Board of Public Utilities (NJBPU) today awarded a combined 2,658 MW of offshore wind capacity to EDF/Shell’s Atlantic Shores Offshore Wind and Ørsted’s Ocean Wind II, bringing the state’s total planned capacity to over 3,700 MW and moving New Jersey closer to Gov. Phil Murphy’s goal of 7,500 MW of offshore wind by 2035 and 100 percent clean energy by 2050.

The board says that today’s award is America’s largest combined award to date.

In a unanimous vote, the board awarded 1,510 MW of capacity to Atlantic Shores Offshore Wind and 1,148 MW to Ocean Wind II. In addition to strong environmental and fisheries protection plans, each project has committed to investing in New Jersey’s burgeoning offshore wind industry by building new manufacturing facilities at the New Jersey Wind Port, utilizing the foundation manufacturing facility at the Port of Paulsboro, creating tens of thousands of jobs, and injecting billions of dollars in economic benefits into the state.

LARGEST COMBINED WIND AWARD TO DATE

“Expanding New Jersey’s offshore wind industry is a major component of achieving our goal of 100 percent clean energy by 2050, while providing significant opportunities and economic benefits for our state,” said Gov. 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 good-paying, union jobs and bring valuable investments to New Jersey. Today’s award, which is the nation’s largest combined award to date, further solidifies New Jersey as an offshore wind supply chain hub and leader in the offshore wind industry in the United States.”

“Offshore wind is a central component of Governor Murphy’s efforts to build a stronger, fairer, and greener economy in New Jersey,” said NJEDA Chief Executive Officer Tim Sullivan. “Establishing New Jersey as a hub of the rapidly-growing American offshore wind industry will bring billions of dollars of investment into the state and create thousands of family-sustaining jobs for residents throughout the state. The solicitation award announced today is another exciting step forward that will help to cement New Jersey’s leadership in this emerging industry.”

Combined, the two projects are estimated to create 7,000 full and or part time jobs across the development, construction and operational phases of the projects. This yields approximately 56,000 full time equivalent job years, as some jobs will be shorter term and others will last for many years. They will also generate $3.5 billion in economic benefits and power 1.15 million homes with clean energy. As required by the solicitation, the project developers will also contribute $10,000 per MW to fund research initiatives and wildlife and fishery monitoring in the region – totaling $26 million that will be administered by NJBPU and the New Jersey Department of Environmental Protection through a robust stakeholder process.

Each project includes a commitment to build a nacelle assembly facility at the New Jersey Wind Port. The nacelle houses the components that convert the mechanical energy of the rotating blades into electrical energy, and is the highest value add offshore wind component. Atlantic Shores plans to partner with MHI Vestas for this facility while Ocean Wind will collaborate with GE. Both projects will utilize the foundation manufacturing facility at the Port of Paulsboro. Additional benefits to the region include a green hydrogen pilot facility from Atlantic Shores and a truck electrification pilot project at Port Newark from Ocean Wind.

In an effort to identify the most efficient, cost-effective, and environmentally sensitive ways of bringing offshore energy ashore, NJBPU is also engaged in a first-of-its-kind transmission solicitation managed by regional grid operator PJM Interconnection. The solicitation seeks ready-to-build options for an open access transmission solution that can deliver offshore wind energy to the existing grid.

“Thank you to the Board of Public Utilities for their thorough and well-run process. We are thrilled to be moving forward with our project and cementing our commitment to deliver clean, renewable power and well-paid jobs to the Garden State for years to come,” said Joris Veldhoven, Commercial and Finance Director at Atlantic Shores. “As offshore wind prepares to take off in the United States, this is a critical moment to lay the groundwork for workforce training and supply chain development. Our robust project includes a number of essential initiatives to train local workers and bring manufacturing jobs to the state that will ensure New Jersey workers and the local economy reap tremendous benefits.”

“With the selection of Ocean Wind 2, New Jersey is now firmly at the heart of the American offshore wind industry,” said David Hardy, CEO Ørsted Offshore North America. “We thank the BPU and Governor Murphy for having the confidence in Ørsted to deliver over 2,000 MW of offshore wind energy, and for further strengthening the partnership between our company and the Garden State. We’re thrilled to grow this global industry alongside the State of New Jersey, as well as help all communities in the State benefit from the offshore wind indust