Wind

Key US federal permit at last for $235m Connecticut State Pier offshore wind revamp

Final approval clears New London port to press ahead with redevelopment to become major manufacturing and marshalling hub

US feds greenlight CT State Pier. Artists rendering of the redeveloped State Pier in New London, CT.
US feds greenlight CT State Pier. Artists rendering of the redeveloped State Pier in New London, CT.Foto: Connecticut Port Authority
  • Tim Ferry

The $235m Connecticut State Pier offshore wind redevelopment finally received a key federal permit after lengthy delays that strained relations with backers including global development giant Orsted.

The US Army Corps of Engineers (ACE) – which has jurisdiction over all activities in US inland and coastal waters – issued its permit on 16 December, enabling the Connecticut Port Authority (CPA) to authorise the project to proceed.

The redevelopment – a collaboration between Orsted and its local utility partner Eversource with the state – will position the 35-acre (14-hectare) port in New London as a major offshore wind manufacturing and marshalling hub.

“We applaud the decision by the ACE to approve the project's federal permit,” said CPA executive director John Henshaw in a statement. “Paired with the state permit approved by DEEP [Department of Energy and Environmental Projection] in August, the project has achieved all regulatory approvals for in-water work. This major milestone caps two comprehensive state and federal permitting processes that began more than two years ago.”

The State Pier port redevelopment is being built to service multiple projects owned by the Orsted-Eversource JV, including the 704MW Revolution Wind, split between Connecticut and Rhode Island, as well as the 880MW Sunrise Wind and the 130MW South Fork Wind, both to be channelled to New York.
The project was expected to have its ACE permits in hand by the end of August, and the delays brought the project’s viability into question, with Orsted demanding inclusion of a clause in the contract that would enable it to renegotiate terms or withdraw entirely if permitting continued to be held up.

The developer issued a series of ultimatums requiring that the permit be issued by 31 August, then 15 September, and again by 15 October, each of which was missed without Orsted exercising its opt-out clause. Orsted-Eversource have committed $77.5m to the project which when completed by 31 January 2023 will have an annual capacity to marshal 324MW.

“Orsted and Eversource... appreciate the US Army Corps of Engineers’ thorough review of the Connecticut Port Authority’s permit application and congratulate the CPA on this significant milestone,” Orsted offshore communications head Tory Mazzola told Recharge on behalf of the Orsted-Eversource joint venture. “We look forward to continuing our work with the State of Connecticut, the CPA, and Gateway Terminal to bring the State Pier project to life.” Gateway Terminal is the operator of State Pier on behalf of the CPA.

Port infrastructure a bottleneck

Lack of port infrastructure capable of handling the burgeoning offshore wind sector is a key bottleneck facing the industry in the race to meet the national goal of 30GW by 2030, and State Pier is one of multiple port projects aimed at capitalising on the expanding market in the US northeast Atlantic coast.

New Jersey recently broke ground on a $460m greenfield wind port development in the state's south , while the Massachusetts’ $113m Marine Commerce Terminal in New Bedford is preparing to stage the installation of the 800MW Vineyard Wind 1, the nation’s first utility-scale offshore wind farm which just announced its financial close and is preparing to enter construction.

“This project positions New London to become the premier commercial east coast hub for the offshore wind sector,” Connecticut Governor Lamont said in a statement. “Connecticut remains a leader in the transition to renewable energy and the fight against climate change… [and] the local investment, job growth, and development opportunities associated with this project are real.”

The redevelopment project is expected to generate 460 construction jobs involved in dredging, fill-placement, and marine construction, including the creation of a new Central Wharf area and heavy lift pad capable of handling massive offshore wind components. The site will include pre-assembly of offshore wind components expected to create 400 full-time jobs.

The American Clean Power Association sees the US offshore wind sector generating some $120bn in investment and economic activities, but key bottlenecks, including vessel and manpower shortages, inadequate transmission capacity, and lack of supply chain and port infrastructure may throttle growth.

The $1tn Bipartisan Infrastructure act passed last month includes $17bn for port upgrades that will help enable the offshore wind rollout.

Along with offshore wind, State Pier will continue to support other existing long-term breakbulk operations for steel, coil steel, lumber, copper billets, as well as other cargo.

(Copyright)
Published 22 December 2021, 20:14Updated 22 December 2021, 20:14
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