US Wind’s 2GW offshore array to Maryland gets final federal go-ahead
COP greenlight allows at-sea construction as Biden ramps sector approvals in waning days of administration
Federal regulators approved US Wind’s construction and operations plan (COP) for 2GW of offshore wind capacity to Maryland, the final go-ahead that allows the project to begin at-sea installation.
The greenlight comes as the Bureau of Ocean Energy Management (BOEM) ramps its project approvals in face of the 20 January transfer of power to President-elect Donald Trump, who is expected to slow roll the sector in his second and final term.
“The Biden-Harris administration has been at the forefront of responsible offshore wind development. Our achievements are helping us drive job creation and foster economic growth while tackling the climate crisis,” said BOEM director Elizabeth Klein.
The project is among the closest to shore of any in the nation, prompting vociferous opposition from tourist hotspot Ocean City over viewshed concerns.
“After more than four years of rigorous and robust analysis, we are thrilled to have secured this final BOEM approval,” said Jeff Grybowski, US Wind CEO.
“US Wind’s projects will produce massive amounts of homegrown energy and will help satisfy the region’s critical need for more electricity, all while supporting good local jobs.”
Anne Reynolds, vice president for offshore wind for industry group American Clean Power Association, said: “This approval enables Maryland to meet growing demand for electricity, drive economic growth and job creation, and bolster American energy security.
“The project will generate substantial economic investment in the state, including the establishment of a new domestic manufacturing facility at Sparrows Point, paired with new, high-quality American jobs, to produce critical steel components for the projects.”
Liz Burdock, CEO of Oceantic Network, said: “The first project for the State of Maryland, it will deliver a host of economic benefits while helping to meet our nation's growing energy demand.”
So far, only 1GW of the total capacity has been contracted by Maryland.
The 270MW MarWin array was awarded offshore wind renewable energy credit (ORECs) contracts in 2017, among the earliest in the nation, at a levelised nominal price of $131/MWh, according to figures from industry group American Clean Power Association (ACP).OREC is the equivalent to the environmental benefits of 1MW of offshore wind power.
The 880MW Momentum Wind array received its offtake contract in 2021 at a rate of $71.6/MWh, far lower than current prices seen in the American sector. US Wind is looking to renegotiate its offtake as well as dramatically expand its contract to Maryland.
Maryland rebid
US Wind’s proposal would see it absorb most of the ORECs previously awarded to Orsted for its 1GW Skipjack arrays that were cancelled in 2023 due to the inflationary fallout that saw three quarters of all American capacity scrapped.
The proposal to the Public Service Commission (PSC) included price hikes for the already contracted projects.
The proposed project expansion is an “opportunity for Maryland to substantially advance toward its goal of procuring 8.5GW of offshore wind power at pricing that fully satisfies the ratepayer impact tests established by Maryland law,” the developer said in its filing to the PSC.
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