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March 26, 2023

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Ecosystem Eco Homepage

Top Developer Submits Bid for Second Phase of Offshore Wind Project in Maryland

July 9, 2021 by Maryland Matters

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The Danish offshore wind developer Ørsted announced Wednesday that it has submitted a bid to generate up to 760 megawatts of power with a proposed second offshore wind project off the coast of Maryland. 

The project, called Skipjack Wind 2, is in response to the Maryland Public Service Commission’s call for proposals for a second round of offshore wind projects in federal waters off the Maryland coast. 

The Clean Energy Jobs Act of 2019 expanded Maryland’s renewable portfolio standard to require that utilities get 50% of the electricity they sell to consumers from renewable sources by 2030. More specifically, it directed the Public Service Commission — which regulates the state’s energy utilities — to find “Round 2” offshore wind projects that could provide at least 1,200 megawatts of power by 2030. 

The application period for this round closed on June 21, and the PSC’s consultant, ICF, has 30 days to review applications. The bids are confidential until then, according to Tori Leonard, spokeswoman for the PSC. It is unclear if any other companies besides Ørsted have submitted a bid for this round of offshore wind projects. 

After the consultant reports to the PSC, the commission will review all applications and award offshore renewable energy credits to a project or projects for this round by Dec. 18, Leonard said. 

Ørsted’s new project proposal would power over 250,000 homes in the Delmarva Peninsula, according to the company’s announcement. 

“Ørsted is privileged to already be a long-term partner to the state of Maryland as it works to meet its offshore wind goals,” David Hardy, CEO of Ørsted Offshore North America, said in a statement. 

“We are proud to build, own, and operate wind farms across the world and will bring that same approach to Maryland. As such, these at least 30-year commitments we are making to the state are designed to provide long-term benefits to all of the communities that will be home to our facilities. In continuing to deliver on our commitments now, and well into the future, we will ensure that Maryland’s offshore wind industry will thrive for decades to come,” he continued. 

In 2013, the General Assembly passed legislation enabling offshore wind development and the Maryland PSC was designated by the federal government to award leases for offshore wind developments in federal waters. The commission finally approved two projects off the coast of Ocean City in 2017. 

Ørsted is in the middle of developing one of these projects, called Skipjack Wind 1, which is to the north of Ocean City and about 19 miles off the coast. It could power 40,000 homes in the Delmarva Peninsula and is slated to start operating by 2026, company officials have said. 

This project is currently under review for final approval by the federal government, as is the MarWin project by US Wind, which would generate 240 megawatts of power — enough to power almost 80,000 for a year. It is 17 miles off the coast of Maryland and tentatively slated to start operating in 2024. 

These projects would run cables under the ocean, connect to the electric grid on land and provide electricity to Maryland utilities, helping the state depend less on fossil fuels and reach its goal of net-zero emissions by 2045. 

Both projects have generated controversy in Ocean City, particularly among political and business leaders who believe views of wind turbines from the beach could hurt tourism and the real estate industry. But many other leaders in Delmarva believe the wind industry could be a powerful economic driver for the region.

Ørsted said it would host a virtual open house on its proposal to build a second phase of the offshore wind project on the evening of July 19.

By Elizabeth Shwe

Filed Under: Eco Homepage Tagged With: Economy, energy, environment, Maryland, ocean city, offshore, renewable energy, wind, wind farm

Hogan Signs Regional Compact to Promote Offshore Wind — But Md. Projects Move Slowly

October 30, 2020 by Maryland Matters

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The headline news is that the governors of Maryland, North Carolina and Virginia signed a compact on Thursday to collaborate and advance offshore wind projects and to promote the Mid-Atlantic and Southeast as hubs for the industry.

In reality, it’s another twist in the tortured debate over bringing wind turbines to Maryland’s waters.

The announcement by Maryland Gov. Lawrence J. Hogan Jr. (R) of his pact with Virginia Gov. Ralph S. Northam (D) and North Carolina Gov. Roy Cooper (D) was pure Hogan, on-brand with his oft-repeated message of bipartisanship and collaboration.

“Maryland has been leading the charge when it comes to real, bipartisan, common sense solutions and we are proud to continue setting an example for the nation of bold environmental leadership,” Hogan said in his statement. “Joining this multi-state partnership to expand offshore wind development will further our strong record of supporting responsible energy projects that provide jobs, clean air benefits, and energy independence.”

Creation of the Southeast and Mid-Atlantic Regional Transformative Partnership for Offshore Wind Energy Resources (SMART-POWER) provides a framework for the three states to cooperatively promote, develop and expand offshore wind by removing regulatory burdens and providing economic incentives for the industry and related construction and supply operations.

It’s a nod to the potential of offshore wind energy at a time when states are scrambling for economic rejuvenation and job growth and are feeling intense pressure to address climate change.

“Harnessing the power of offshore wind is key to meeting the urgency of the climate crisis and achieving 100% clean energy by 2050,” Northam said.

The governors cited a U.S. Department of Energy study estimating that Atlantic Coast offshore wind projects could support up to 86,000 jobs, $57 billion in investments, and provide up to $25 billion in economic output by 2030. Virginia leaders in particular have aggressively promoted offshore wind in recent years, and the state’s largest power company, Dominion Energy, signaled this year that it plans to put more resources into developing its clean energy portfolio.

In a statement, the Sierra Club hailed the agreement.

“This partnership between Mid-Atlantic States is only the start of unlocking the region’s massive potential for clean affordable offshore wind energy,” said David Smedick, the Sierra Club’s Beyond Coal senior campaign representative. “The region must move quickly to attract investment in this burgeoning industry and help ensure we bring clean energy and family-sustaining, union jobs to Maryland.”

But Hogan’s own record and rhetoric on two long-proposed offshore wind projects off the coast of Ocean City have been decidedly mixed — and some environmental groups have grumbled for years that he and his administration could be doing more to promote offshore wind. A year ago, when the Maryland Department of Environment issued a detailed draft proposal about how the state would reduce greenhouse emissions, environmentalists and their allies in the General Assembly argued that offshore wind notably received short shrift — a contention that state Environment Secretary Ben Grumbles pushed back on.

Maryland has two offshore wind projects under review by the U.S. Interior Department’s Bureau of Ocean Energy Management. The Skipjack Wind Farm Project, to be built by Ørsted Offshore North American, is set to be located 19.5 miles off the coast of the northern part of Ocean City and adjoining Delaware beach towns.

Also under consideration is the MarWin Wind Farm project, which would be situated roughly 17 miles off the Ocean City coast, proposed by U.S. Wind.

Both projects were enabled by the Maryland Offshore Wind Energy Act of 2013, which was heavily promoted by then-Gov. Martin J. O’Malley (D) and passed by the Democratic supermajorities in the General Assembly after a years-long legislative fight. But after receiving approval from the Maryland Public Service Commission (PSC) in 2017, the wind projects have proceeded at a sluggish pace — and amid increasing vocal opposition from political and business leaders in Ocean City, Maryland’s No. 1 tourist town.

Ocean City hired Bruce C. Bereano — arguably the most enthusiastic Hogan supporter in the Annapolis lobbying corps — to try to derail the proposals or push them farther offshore, and hired Timothy F. Maloney, a former state lawmaker and close Hogan friend, for some legal work related to the wind turbines, even though Maloney had no prior experience arguing cases before the PSC.

In the past year, Ørsted has had to fend off a challenge in the PSC after the company announced that it would be using larger turbines than it had originally said it would — to meet changing standards in the industry. The PSC, whose commissioners all have been appointed by Hogan, could have simply noted the change but instead initiated a lengthy hearing process to gauge community opinion — a process endorsed by the Hogan-controlled Maryland Energy Administration.

In August, the PSC signed off on Ørsted’s bigger turbines, at the MEA’s recommendation. But the PSC proceeding may have delayed the project’s completion by almost a year.

Without knowing how long the federal regulatory process will take — and the outcome of the presidential election could make a difference — both Ørsted and U.S. Wind said they hope to turn the turbines on in 2023, which seems like an optimistic estimate.

Both Ørsted and U.S. Wind issued statements Thursday that applauded the three-state wind energy compact.

Brady Walker, Ørsted’s Mid-Atlantic manager, hailed the governors’ “forward-thinking approach,” and said the company is “excited to engage with their effort to grow this new American industry.”

Salvo Vitale, the U.S. Wind country manager, said the agreement will be good for both Maryland and the region.

“We believe this strategic multi-state partnership will be critical leverage right now as many regions compete to attract the larger economic development that comes with the full offshore wind manufacturing supply-chain,” he said. “Locally based supply chain options will bring cost savings to Maryland rate-payers as we expand offshore wind development. We stand ready to be a creative and dynamic partner, with global expertise, as we work together to meet Maryland’s renewable energy goals, while creating high-quality jobs and driving significant local investment in the Baltimore area and across Maryland.”

Notably, neither company said Thursday’s announcement would improve the prospects for their projects in Maryland’s waters.

By Josh Kurtz

Filed Under: Eco Homepage Tagged With: Economy, energy, Maryland, ocean city, offshore, sustainable, wind

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