Crowley breaks ground for Salem Offshore Wind Terminal

Massachusetts Gov. Maura Healey and Lieutenant Gov. Kim Driscoll and Salem Mayor Dominick Pangallo joined Crowley Wind Services president and CEO Bob Karl and other leaders to pick up shovels for the ground breaking ceremony. [Phpto: Crowley]

Crowley Wind Services yesterday marked a milestone with the ceremonial groundbreaking of the Salem Offshore Wind Terminal. This project involves transforming a former oil- and coal-fired power plant into Massachusetts’ second wind port, which will propel the state toward its clean energy goals and expedite the construction of next-generation wind farms. The terminal is being built to support the construction of offshore wind farms in New England and future floating turbines in the Gulf of Maine.

Massachusetts Gov. Maura Healey, Lieutenant Gov. Kim Driscoll and Salem Mayor Dominick Pangallo joined Crowley Wind Services president and CEO Bob Karl and other leaders to pick up shovels for the ceremony.

Crowley also announced that Massachusetts-based joint venture DW White JF White is to be the project’s general contractor and has executed a project labor agreement with the North Shore Building and Construction Trades and the North Atlantic States Regional Council of Carpenters (NASRCC).

“Coming on the heels of $389 million in federal funds for offshore wind transmission in Somerset, the expansion of the port in New Bedford, and now the groundbreaking in Salem, Massachusetts is well-positioned to support the growing offshore wind industry,” said Gov. Healey. “These investments in infrastructure are boosting the local economy, creating union jobs, and transforming the way we power our homes and businesses. Credit to Lieutenant Governor Driscoll for her vision, Mayor Pangallo for securing a strong Community Benefits Agreement, and to the many other stakeholders who are making the pivot to offshore wind.”

“I’m thrilled to be able to finally see the Salem Offshore Wind Terminal go from idea to reality. During my time in office, it was clear that Salem, with its rich maritime heritage and vibrant community, was the natural choice to become a major offshore wind hub,” said Lieutenant Governor Driscoll. “Now, as we tackle pressing environmental challenges and drive local economic growth, it’s inspiring to see Salem leading the way. This is a proud moment for our city, and I’m honored to witness our vision come to life.”

In February 2023, the Massachusetts Clean Energy Center (MassCEC), Crowley Wind Services and the City of Salem announced a significant agreement for the transfer of ownership, site improvements and ongoing operations at the Salem Offshore Wind Port Terminal. This terminal will be one of the few locations capable of supporting the construction and installation of fixed and floating offshore wind projects. The Commonwealth of Massachusetts, MassCEC and MARAD have partnered with Crowley and the City of Salem on the terminal.

“The Salem Wind Terminal will be a historic achievement, and we appreciate the trust and partnership by the City of Salem, Commonwealth of Massachusetts and the U.S. Maritime Administration to create a world-class wind terminal that reliably and safely serves the supply chain needs of the wind energy industry,” said Crowley Corporation chairman and CEO Tom Crowley. “This public-private partnership in Salem can be a model for communities and the industry to follow to achieve our commitments to create renewable, sustainable power.”

The terminal will provide opportunities for jobs and prioritize hiring local residents, especially those from underserved backgrounds. This will include about 150 jobs during construction and at least eight long-term Crowley employees to manage the terminal during operations, with an additional 20-30 jobs operating and maintaining the facility during busier periods. When projects are underway, 60 to 150 jobs, from engineers to building trades, will also be available through our tenants and their contractors. Because building the workforce for this new industry is critical, Crowley has already partnered with the Massachusetts Maritime Academy and Salem High School to provide career training.

“We appreciate the trust and collaboration by many local, state and federal stakeholders placed in Crowley Wind Services to develop and operate the Salem Offshore Wind Terminal as a leading hub for maritime and logistics services to help Massachusetts and New England reach their clean energy goals,” said Karl, who is president and CEO of Crowley Wind Services Holdings LLC, a joint venture between Crowley and Morgan Stanley Infrastructure Partners that is focused on repurposing and operating existing U.S. port facilities to support wind energy.

“The terminal will provide an essential nexus that supports our customers and the broader supply chain in our journey to deliver low-cost, renewable energy,“ Karl continued. “The partnerships we have established across the industry will provide critical investments and jobs in Salem and the North Shore for a generation to come.”

Crowley will be responsible for redeveloping and operating the terminal. It has signed a lease with MassCEC to use the site as an offshore wind marshaling port, with a focus on projects for Massachusetts. The City of Salem has also leased a berth and surrounding land for this purpose. Crowley Wind Services will improve the site by adding infrastructure for heavy equipment, constructing a new ship berth, upgrading the city’s existing berth, and dredging the harbor channel. The wind port is expected to begin operating in 2026.

“Turning this site from a dirty oil- and coal-fired plant into a cutting-edge offshore wind terminal proves what we can achieve when government, industry, and communities work together,” said Massachusetts Energy and Environmental Affairs (EEA) Secretary Rebecca Tepper. “Instead of hosting facilities that pollute the air, Salem will soon host a port that brings good jobs and an exciting new industry to its shores. Offshore wind is essential for decarbonizing our grid and meeting our ambitious climate goals, and port infrastructure is an important part of that effort.”

“Salem, with its rich coastal heritage, is the perfect place for MassCEC to meaningfully invest. By supporting the Salem Offshore Wind Terminal, we’re not only revitalizing Salem’s waterfront but also advancing Massachusetts’ clean energy future,” said Massachusetts Clean Energy Center CEO Dr. Emily Reichert. “This project reflects our dedication to building the essential infrastructure, strengthening our regional supply chain, nurturing the talent that will elevate our state as a national leader in offshore wind.”

“For centuries, when Salem looked to the future, we’ve looked to the sea and what’s possible on its distant horizons,” said Salem Mayor Dominick Pangallo. “And, as a coastal city, we know full well the cost of inaction when it comes to fighting our climate crisis. Now, on the site where there was once one of the dirtiest coal power plants in America, we’re ready to do our part to achieve a clean energy transition that will power our nation’s future, create green jobs, and strengthen our community for generations to come. We’re grateful to the Healey-Driscoll administration, Crowley, MassCEC, and our community partners and officials who all made this day possible.”