US clears New York offshore wind power flagship South Fork to put steel in the water

Federal Bureau of Ocean Energy Management approves developer Orsted-Eversource's construction and operations plan for 132MW project in Atlantic

CGI of South Fork offshore wind farm substation being delivered by Kiewit
CGI of South Fork offshore wind farm substation being delivered by KiewitFoto: Orsted/Eversource

The construction and operations plan (COP) for the South Fork offshore wind farm off the US state of New York has been given the go-ahead by the federal government, paving the way for the development of the country’s second commercial scale project at sea.

The Bureau of Ocean Energy Management (BOEM), the agency under the US Department of the Interior charged with managing development on the outer continental shelf (OCS), issued its final approval for the 132MW project, being developed by a joint venture between Danish renewables giant Orsted and New England utility Eversource.

The COP approval for South Fork, New York state’s flagship offshore wind project, follows the record of decision (ROD) published by BOEM in November rubber-stamping the development’s environmental impact statement and clearing the way for construction.
“This milestone underscores the tremendous opportunity we have to create a new industry from the ground up to drive our green energy economy, deliver clean power to millions of homes and create good jobs across the state,” said New York governor Kathy Hochul.

“As we tackle climate change head on and transition to a clean economy, these are the projects that will power our future.”

New York state leads the US with over 9GW of offshore wind plant planned by 2035, forming a substantial component of its net-zero power goals by 2040. The state has over 4.3GW of capacity currently under development, and earlier this month Hochul announced over $500m investment into port and supply chain capacity.
BOEM last week announced a lease auction for acreage with up to 7GW of potential offshore wind capacity in the New York Bight south of Long Island and east of New Jersey, a portion of which will feed the New York grid.

David Hardy, chief executive of Orsted Offshore North America, said in a statement: “As New York’s first offshore wind farm, South Fork Wind is already contributing to a new state-wide and US manufacturing era and maritime industry, including good-paying union jobs through our labour partnerships and vision for the industry.”

Orsted and Eversource expect to begin construction, including the onshore transmission cable, within weeks, with offshore installation of the wind farm’s dozen 11MW Siemens Gamesa SG11.0-200DD turbines beginning in mid-2023. Orsted expects to see the project commissioned in late 2023.

Turbines at South Fork will channel power to what will the US’ first offshore substation, which is being constructed by Kiewit Offshore Services, then via a 138kV export cable manufactured at Nexans’ new South Carolina cable factory on to the land grid.

The project will also employ the US’ first Jones Act compliant service operations vessel being constructed by Edison Chouest Offshore’s shipyards in Louisiana, Florida, and Mississippi.

“Today’s federal approval of South Fork further solidifies the US as a major market and will boost needed supply chain investments,” said Ross Gould, vice president of supply chain development at business advocacy body the Business Network for Offshore Wind.

The federal approval is the culmination of years of development for the project, beginning in July 2013 when Deepwater Wind New England, bought by Orsted in 2018, won control of the 13,700-acre (5,544ha) lease area in a competitive auction.
Orsted was granted a power purchase agreement by the Long Island Power Authority (LIPA) in 2017 of $160.33/MWh for the initial 90MW of capacity and $86.25/MWh for the balance. Both prices escalate at an average of 2% per year for 20 years. The project will cost an average residential customer between $1.39 and $1.57 per month, according to LIPA.

Located 19 miles (30km) south of Block Island, Rhode Island, and 35 miles east of Montauk Point, Long Island, the project will make interconnection into the LIPA grid at Cove Hollow Road in East Hampton, Long Island, and will be serviced through an operations and maintenance base at Montauk Point.

The project has stirred controversy during its long development, however, and a lawsuit is pending in Suffolk County Supreme Court filed by the Government Justice Centre on behalf of a private citizen alleging that the project’s award violated LIPA’s own procurement process and mandates.

Further lawsuits filed on behalf of local impacted fisheries are also to be expected. When contacted about these lawsuits by Recharge, Orsted declined to comment.
The US offshore wind sector is aiming to reach the Biden administration’s goal of having 30GW of capacity by 2030, underpinning development of a supply chain expected to by American Clean Power Association to grow to a market value of $120bn.
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Published 20 January 2022, 01:09Updated 20 January 2022, 01:09
USNew YorkOrstedEversourceUS Atlantic