US Wind's 2GW Maryland plan cleared by Biden officials
Tenth go-ahead by administration bolsters MidAtlantic state’s 8.5GW by 2031 goal
US President Joe Biden’s administration greenlighted US Wind’s 2GW array for Maryland, its tenth offshore wind project go-ahead that raises total approved capacity to some 15GW towards its 30GW by 2030 goal.
Federal regulator Bureau of Ocean Energy Management (BOEM)’s record of decision (ROD) enables the developer to begin onshore construction for the project some 10 miles (16km) off the MidAtlantic states of Maryland and Delaware.
“Today’s approval of US Wind’s Maryland Offshore Wind Project reflects the best available science and invaluable insights from Tribes, government agencies, local communities, industry leaders, ocean users, and environmental groups gathered during our extensive environmental review process," said BOEM director Elizabeth Klein.
“As we continue to support the undeniable momentum we see along our coasts, our focus remains on fostering responsible energy development, while protecting marine life and ecosystems,” she added.
“BOEM’s Record of Decision brings us another step closer to securing final approvals later this year and getting steel in the water,” said Jeff Grybowski, US Wind CEO. “We’re eager to advance Maryland’s offshore wind goals and support good jobs in the region for decades to come.”
Two phases have already been contracted by Maryland.
The 270MW MarWin array was awarded offshore wind renewable energy credit contracts (OREC) 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).
An 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.
Despite its low-priced offtake contracts, US Wind, majority owned by Italy’s Renexia, has not publicly sought to renegotiate them amid inflationary headwinds that have derailed much of the nation’s offshore wind capacity.
A BloombergNEF wind energy analyst noted that Maryland state law recently signed by governor Wes Moore allows earlier procured projects to revise pricing, sizes and schedules.
The remainder of the capacity is available to be bid into future rounds to meet Maryland’s ambitious 8.5GW by 2031 mandate.
US Wind is a major investor into Maryland's offshore wind supply chain and is developing a monopile manufacturing facility at Sparrows Point, formerly the site of the nation's largest steelworks.
“In just four years, the US went from zero permitted offshore wind power projects to 10, representing real progress,” said Anne Reynolds, ACP's vice president of offshore wind.
“The offshore wind power industry is poised to help the US meet its surging demand for electricity, especially on the populated East Coast, with a clean and pollution-free technology.”
Biden push
BOEM has ramped offshore wind project approvals and leasing as it nears the election in November that could halt the sector in its tracks.
It's recent leasing round in the Central Atlantic saw two areas holding some 6.3GW of potential capacity sell to Dominion Energy and Equinor for $93m, and it announced another auction off Oregon holding over 3GW for October.