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Released February 26, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Last week saw some big movement in the U.S. offshore wind sector, with several important announcements. Avangrid Incorporated (NYSE:AGR) (Orange, Connecticut) and Copenhagen Infrastructure Partners (CIP) (Copenhagen, Denmark) now have a portion of their joint-venture windfarm off the Massachusetts coast steadily providing power to the state's grid. Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) announced the sale of a 50% stake in the nation's largest planned offshore windfarm, and another large U.S. offshore windfarm received final approval to commence construction from federal authorities.
Avangrid and CIP's Vineyard Windfarm
Avangrid and CIP began placing turbines at their Vineyard Windfarm off the Massachusetts coast in September. The companies have now completed the installation of nine turbines and have set 47 monopiles, which serve as turbine foundations, as of January, according to local news media. Monopile driving now will have to be delayed until at least May of this year under an agreement with the National Oceanic and Atmospheric Administration's Fisheries division due to noise.
Late last week, Massachusetts Governor Maura Healey (D) announced that five of the project's turbines were now consistently sending about 68 megawatts (MW) of power to the grid. This is set to increase as the project progresses. Each turbine will begin delivering power after undergoing testing once erected.
The Vineyard Windfarm will have a total of 62 General Electric (NYSE:GE) (Boston, Massachusetts) turbines, each rated at 13 MW, to provide total generation of 806 MW. While the company is aiming for completion in late 2026, this date could slip a bit. Ken Kimmell, chief development officer at Avangrid, confirmed to news media that this is still the target date, but "it could take a little longer," as the U.S. offshore wind industry is still in its infancy and faces learning curves.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more by viewing the project reports on the construction of the first 31 turbines, as well as that for the project's second half.
Dominion's Coastal Virginia Offshore Wind (CVOW) Project
On Thursday, Dominion announced that it would sell a noncontrolling 50% stake in the CVOW project to investment firm Stonepeak (New York, New York). At a planned 2,600 MW, the CVOW is presently the largest offshore windfarm planned for U.S. waters. Dominion will maintain full operational control of the construction and operations of CVOW, and Stonepeak will gain minority interest rights. The transaction is expected to close by the end of the year but first needs approval from a number of regulatory bodies, including the U.S. Securities and Exchange Commission, the Bureau of Ocean Energy Management (BOEM) and the North Carolina Utilities Commission (Raleigh, North Carolina). Once the deal closes, Dominion and Stonepeak each will contribute 50% of the remaining capital necessary to fund construction of the project.
The CVOW project will include 176 turbines and three offshore substations on a lease area 27 miles off the coast of Virginia Beach, Virginia. In order to meet its planned completion date of yearend 2026, construction is expected to begin in the coming months. Subscribers can click here for the full project report.
Equinor's Empire Offshore Windfarm
Also last week, the BOEM approved construction of Equinor's (NYSE:EQNR) (Stavanger, Norway) Empire Windfarm, off the New York coast, marking one of the last federal approvals needed for the project's construction. Equinor became the sole owner of the windfarm last month in a shift in the ownership of two U.S. windfarms jointly held by it and BP (NYSE:BP) (London, England). For more information, see January 29, 2024, article - Contracts, Ownership Shift in U.S. Offshore Wind Sector.
However, a few stumbling blocks remain--primarily a new power contract with New York. As U.S. sales contracts for power generated from offshore windfarms have aged, they have not kept pace with the increased costs of developing these facilities, resulting in the cancellation of contracts and, in certain cases, the cancellation of entire projects. To mitigate the risks of losing projects, New York has allowed offshore wind developers to scrap previous contracts and renegotiate them, a process Equinor began last month for the first portion of the project, Empire 1. According to news media, the state is expected to announce the results of these revised contract bids in the coming weeks.
Empire 1 would include 54 turbines, each rated at 15 MW, to achieve nameplate generation of 810 MW. Equinor did not resubmit a bid to New York for the second part of the project, which would add a further 1,200 MW of generation through the addition of 80 turbines, saying it would bid this portion at a future date. The BOEM's construction approval, however, applies to both portions of the project when the time comes. Construction of Empire 1 could begin later this year, aiming to make the first 810 MW from the project available to the grid in 2026.
Subscribers can learn more by viewing the project reports on Empire 1 and Empire 2.
Subscribers to Industrial Info's GMI Power Database can click here to view reports for all of the projects discussed in this article and click here to see the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Avangrid and CIP's Vineyard Windfarm
Avangrid and CIP began placing turbines at their Vineyard Windfarm off the Massachusetts coast in September. The companies have now completed the installation of nine turbines and have set 47 monopiles, which serve as turbine foundations, as of January, according to local news media. Monopile driving now will have to be delayed until at least May of this year under an agreement with the National Oceanic and Atmospheric Administration's Fisheries division due to noise.
Late last week, Massachusetts Governor Maura Healey (D) announced that five of the project's turbines were now consistently sending about 68 megawatts (MW) of power to the grid. This is set to increase as the project progresses. Each turbine will begin delivering power after undergoing testing once erected.
The Vineyard Windfarm will have a total of 62 General Electric (NYSE:GE) (Boston, Massachusetts) turbines, each rated at 13 MW, to provide total generation of 806 MW. While the company is aiming for completion in late 2026, this date could slip a bit. Ken Kimmell, chief development officer at Avangrid, confirmed to news media that this is still the target date, but "it could take a little longer," as the U.S. offshore wind industry is still in its infancy and faces learning curves.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more by viewing the project reports on the construction of the first 31 turbines, as well as that for the project's second half.
Dominion's Coastal Virginia Offshore Wind (CVOW) Project
On Thursday, Dominion announced that it would sell a noncontrolling 50% stake in the CVOW project to investment firm Stonepeak (New York, New York). At a planned 2,600 MW, the CVOW is presently the largest offshore windfarm planned for U.S. waters. Dominion will maintain full operational control of the construction and operations of CVOW, and Stonepeak will gain minority interest rights. The transaction is expected to close by the end of the year but first needs approval from a number of regulatory bodies, including the U.S. Securities and Exchange Commission, the Bureau of Ocean Energy Management (BOEM) and the North Carolina Utilities Commission (Raleigh, North Carolina). Once the deal closes, Dominion and Stonepeak each will contribute 50% of the remaining capital necessary to fund construction of the project.
The CVOW project will include 176 turbines and three offshore substations on a lease area 27 miles off the coast of Virginia Beach, Virginia. In order to meet its planned completion date of yearend 2026, construction is expected to begin in the coming months. Subscribers can click here for the full project report.
Equinor's Empire Offshore Windfarm
Also last week, the BOEM approved construction of Equinor's (NYSE:EQNR) (Stavanger, Norway) Empire Windfarm, off the New York coast, marking one of the last federal approvals needed for the project's construction. Equinor became the sole owner of the windfarm last month in a shift in the ownership of two U.S. windfarms jointly held by it and BP (NYSE:BP) (London, England). For more information, see January 29, 2024, article - Contracts, Ownership Shift in U.S. Offshore Wind Sector.
However, a few stumbling blocks remain--primarily a new power contract with New York. As U.S. sales contracts for power generated from offshore windfarms have aged, they have not kept pace with the increased costs of developing these facilities, resulting in the cancellation of contracts and, in certain cases, the cancellation of entire projects. To mitigate the risks of losing projects, New York has allowed offshore wind developers to scrap previous contracts and renegotiate them, a process Equinor began last month for the first portion of the project, Empire 1. According to news media, the state is expected to announce the results of these revised contract bids in the coming weeks.
Empire 1 would include 54 turbines, each rated at 15 MW, to achieve nameplate generation of 810 MW. Equinor did not resubmit a bid to New York for the second part of the project, which would add a further 1,200 MW of generation through the addition of 80 turbines, saying it would bid this portion at a future date. The BOEM's construction approval, however, applies to both portions of the project when the time comes. Construction of Empire 1 could begin later this year, aiming to make the first 810 MW from the project available to the grid in 2026.
Subscribers can learn more by viewing the project reports on Empire 1 and Empire 2.
Subscribers to Industrial Info's GMI Power Database can click here to view reports for all of the projects discussed in this article and click here to see the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
