Equinor and unions sign labour accord for construction of New York City offshore wind hub

Project agreement will set wage and safety standards for South Brooklyn Marine Terminal in support of 810MW Empire Wind array

. Molly Morris.
. Molly Morris.Foto: Equinor

Norwegian state energy firm Equinor announced a major labour agreement with New York-based unions for redevelopment of the South Brooklyn Marine Terminal into an offshore wind hub in support of the 810MW Empire Wind array.

The developer and Building & Construction Trades Council of Greater New York and Vicinity today (Wednesday) signed a Project Labor Agreement (PLA) to establish working standards and safety practices in the construction of the terminal that they say will create 1,000 union jobs and “as well as thousands of indirect jobs in manufacturing, shipping and logistics”.

The PLA “ensures that SBMT’s construction will provide union jobs with family-sustaining wages, industry-leading safety standards, and robust and equitable training programs to help communities from across New York City enter this new industry,” said Molly Morris, president of Equinor Renewables Americas.

New York City Economic Development Corporation chief strategy officer Cecilia Kushner said the PLA would ensure “diversity in waterfront construction by increasing access for New Yorkers of all backgrounds to benefit from these high-quality, green-collar jobs.”

The $861m revitalisation of SBMT in New York City had been under threat as Equinor and its former partner BP cancelled two out of three projects that were to be staged there due to skyrocketing inflation and interest rates that made them no longer economically viable.
The terminal project was rescued by the re-contracting of Empire Wind 1 in the state’s quickly arranged round 4 last month that raised its offtake strike price to $150/MWh from the previous $83/MWh.

The PLA “represents New York’s advancement of an equitable transition to clean energy that brings good paying job opportunities and benefits to the residents who live and work in the communities hosting renewable energy projects,” said Doreen Harris, CEO of the New York State Energy Research and Development Authority (Nyserda), the agency charged with overseeing the state’s energy transition.

Construction at SBMT is expected to begin next week, starting with the demolition of existing outbuildings, excavation of the site, and bulkhead preparation work. Contracts covered by the agreement include Skanska, GE, and Nexans.

PLAs “are an important way to build stakeholder partnerships and advance offshore wind projects” said American Clean Power Association vice president of offshore wind Anne Reynolds.

PLAs signed between developers and unions have proliferated in US offshore wind, spearheaded by flagship Vineyard Wind's agreement with the Southeastern Massachusetts Building Trades Council signed in 2021.

The administration of President Joe Biden has prioritised union hiring in offshore wind and the energy transition generally by including labour standards in federal incentives.

(Copyright)
Published 27 March 2024, 23:54Updated 11 June 2024, 00:10
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