US offshore wind sails swell as New York's South Fork wins government go-ahead

The Bureau of Ocean Energy Management (BOEM), the agency under the Department of the Interior charged with managing development in US federal waters, issued its record of decision (ROD) approving the 132MW project’s final environmental impact statement (FEIS) , clearing the way for the first steel in the water next year off New York state.

“Just one year ago, there were no large-scale offshore wind projects approved in the federal waters of the US. Today there are two, with several more on the horizon. This is one of many actions we are taking in pursuit of the President’s goal to open the doors of economic opportunity to more Americans.”

“With the achievement of this critical federal permitting milestone, construction of this historic wind farm is expected to begin in the weeks and months ahead,” David Hardy, CEO of Orsted Offshore North America.

“South Fork Wind will not only boost the economy with family-sustaining jobs, but it will also help combat climate change and reduce air pollution as a clean energy resource for many Long Island residents.”

The state of New York leads the nation with over 9GW of offshore wind capacity planned for by 2035, forming a substantial component of its net-zero power goals by 2040. The state has over 4.3GW of capacity currently underdevelopment.

“With today’s permitting milestone, South Fork Wind is set to be New York’s historic first offshore wind farm providing clean energy where it is needed most," said New York governor Kathy Hochul.

“Our nation-leading climate and offshore wind goals demand bold action and moving South Fork Wind forward brings us closer to a cleaner and greener future.”

South Fork will feed into the Long Island Power Authority (LIPA) on Long Island, New York at the East Hampton Substation and provide power for 70,000 homes.

“This historic milestone for New York’s first offshore wind farm is an achievement that will help deliver clean energy and good-paying jobs, while combating climate change and reducing air pollution,” stated Tory Mazzola, head of communications for Orsted North America.

Orsted and Eversource expect to begin onshore construction, including the onshore transmission cable as early as January 2022, with offshore installation of the wind farm’s dozen 11MW SG11.0-200DD Siemens-Gamesa turbines beginning in mid-2023.

South Fork is expected to generate hundreds of jobs in New York and around the country, including 350 jobs in Texas and neighbouring states for the manufacturing of the first offshore substation built in the US by Kiewit Offshore Services.

“BOEM’s RoD on the South Fork Wind farm is a significant milestone on the journey to establishing family-sustaining careers with good pay and benefits in a new industry,” said Roger Clayman, executive director of the Long Island Federation of Labor.

“The Long Island Federation of Labor congratulates Orsted and Eversource for their exhaustive efforts to engage communities and their commitment to high-road economic development.”

Orsted was granted a power purchase agreement by 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 south of Block Island and 35 miles east of Montauk Point, Long Island, the project will be serviced through an O&M facility out of Montauk Point.

“The issuance of the South Fork Wind RoD, and forthcoming expected final approval in January 2022, creates a highly visible development pipeline which will lead to the project’s financial close and trigger investments in the US domestic offshore wind supply chain.”