Sector majors go head-to-head in New York’s 3rd offshore wind competition.
New York’s third competitive offshore wind solicitation, launched last summer with a target of at least 2,000 MW, closed for project submissions on January 26, but not before drawing bids from some of the sector majors.
EQUINOR AND BP
Norwegian energy group Equinor ASA (NYSE:EQNR) and oil-and-gas multinational BP Plc (LON:BP) launched a joint bid for a 1,360-MW project within the Beacon Wind 2 lease area located 60 miles off Long Island. If installed, the capacity could generate power for around one million homes in New York.
The two developers, which plan to realise the project through a 50/50 partnership, estimate that Beacon Wind 2 will bring more than USD 11 billion in new economic activity to New York over its lifespan. Their proposal comes with plans for a new cable components factory for the offshore wind industry and port infrastructure facilities.
Beacon Wind 2 adds to a portfolio of three offshore wind projects that BP and Equinor are developing off New York – the Empire Wind 1 and 2 and Beacon Wind 1 schemes, which will add a combined capacity of 3.3 GW.
ØRSTED AND EVERSOURCE
Denmark’s Ørsted A/S (CPH:ORSTED) and New England utility Eversource Energy (NYSE:ES) have submitted a joint proposal consisting of multiple bids with different configurations. They said it will generate billions of dollars in economic activity, create thousands of new jobs, and prioritise disadvantaged communities and minority- and women-owned business enterprises (MWBEs).
Early last year, Ørsted and Eversource initiated construction work on their 130-MW South Fork Wind project off Long Island. Meanwhile, the partners are also working together on the 924-MW Sunrise Wind project. The two offshore wind farms should be completed in 2023 and late 2025, respectively.
RWE AND NATIONAL GRID
Community Offshore Wind, the US joint venture between RWE Renewables and National Grid Plc (NYSE:NGG), took part in the competitive bidding process with a proposal to build a 1.3-GW offshore wind farm in the 126,000-acre lease area it won a year earlier in the New York Bight.
The JV estimates that if selected, the project will create more than 4,600 jobs across the supply chain in New York through 2023 and deliver over USD 3 billion in benefits to the state economy.
In addition, the company has come up with a supply chain investment plan that involves localising both blade and nacelle facilities in partnership with General Electric (GE), bringing steel fabrication and processing to Orange County, and investing in a Staten Island port facility for staging and assembly of wind turbines.
INVENERGY AND ENERGYRE
Leading Light Wind, a partnership between lead developer Invenergy and co-developer energyRe LLC, has offered to build an up-to-2,100-MW wind park, which, it says, is the only American-led offshore wind project in the New York Bight.
According to the developer, the project represents up to USD 13.3 billion in economic benefits for the state and is expected to support tens of thousands of jobs over its operational life.
Leading Light Wind has already entered into a pact with North America’s Building Trades Unions (NABTU) and established partnerships with community-based organisations and institutions such as CUNY Offshore Wind Advisory Network and the New York City Economic Development Corporation, among others.
“We’re creating next-generation jobs through an innovation and operations base at the historic Brooklyn Navy Yard and marshaling port development at the Arthur Kill Terminal on Staten Island. In addition, we’re offering an energy storage solution to provide grid resilience and align our project with New York’s energy storage goals,” said Joshua Weinstein, Vice President and Head of Offshore Development for Invenergy.
RISE LIGHT & POWER
A couple of days before the deadline, Rise Light & Power LLC announced its intention to participate in the solicitation through an ownership stake in an unnamed 1,300-MW offshore wind project. The Queens-based energy asset manager and developer, a unit of LS Power, views this project as part of a plan to repower New York City’s largest fossil-fuel power plant.
The New York State Energy Research and Development Authority (NYSERDA) is expected to announce the winners of the competitive bidding process this spring. The state has set a goal to achieve a 70% renewable power share by 2030 and at least 9,000 MW of offshore wind in operation by 2035.
(USD 1 = EUR 0.918)