117 2020 · 2020. 4. 7. · 124 2020 offshore wind/energy n dominion project/virginia commercial...

117 2020 Virginia Ports Annual


107OffshOre Wind/energy

Virginia’s Offshore Wind Beginnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107

Offshore Wind East Coast Market Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109

US East Coast Offshore Wind Volume Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111

CVOW Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111

Dominion Project/Virginia Commercial Lease Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112

Kitty Hawk Wind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112

Virginia’s Commitment to Offshore Wind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112

Opportunities to Get Involved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113

119The Voice of Port Industries since 1920

OffshOre Wind/energy

n Virginia’s OffshOre Wind Beginnings

The Virginia Maritime Association (VMA) has been at the center of the development of Virginia’s offshore wind industry since 2009 . The VMA first worked with federal and state authorities, coordinating industry response and input to identify areas suitable for offshore wind development that would be compatible with the current and future needs of commercial and Navy vessel traffic . Upon resolving that port access and the requirements for commercial navigation would be protected, the VMA became a champion for expanding and diversifying Virginia’s already substantial maritime industry by positioning the port as a hub for the offshore wind supply chain .

For companies exploring whether to establish operations in Virginia or expand their existing local capabilities to participate in offshore wind, the VMA has been pleased to provide business intelligence and facilitate business relationships, for example, by collaborating with the Virginia Department of Mines, Minerals, & Energy (DMME) to grow Virginia’s supplier

The Virginia Wind Energy Area comprises 112,799 acres. Dominion Energy was awarded the lease November 1, 2013. Dominion announced it intends to develop 2,600 megawatts of wind energy in the lease by 2026.

Above is a map of Dominion Energy’s Coastal Virginia Offshore Wind test project. (Dominion Energy)


OFFSHORE WIND/ENERGY

database and support with outreach to stakeholders . The VMA has been promoting the benefits of our port, the available services, and the strengths of our collaborative and strong maritime community, and is currently working with regulators, lawmakers, and community leaders to set the conditions that will make Virginia a preferred choice for businesses participating in offshore wind .

In addition to the VMA, the Virginia Offshore Wind Team, led by the Department of Mines, Minerals and Energy (DMME), recognizes the long-term economic development opportunity to capitalize on the Commonwealth’s logistical and workforce advantage . In fact, the team regularly hosts site tours with globally recognized offshore wind developers, procurement and logistics experts, European foundation fabricators, and other potential supply chain businesses .

Additionally, the Virginia Offshore Wind Development Authority (VOWDA) was created in 2010 through Title 67, Chapter 12, of the Code of Virginia, with the mission to facilitate, coordinate and support development of the offshore wind energy industry, offshore wind energy projects, and supply chain vendors by:

• Collecting metocean and environmental data;• Identifying regulatory and administrative barriers;• Working with local, state, and federal government agencies to upgrade

port and logistic facilities and sites;• Ensuring development is compatible with other ocean uses and avian/

marine wildlife; and • Recommending ways to encourage and expedite offshore wind industry

development .

(Source: www .vaoffshorewind .org)

(Picture source: VMA)


n OffshOre Wind east COast Market OVerVieW • State driven offshore wind commitments currently exceed 21 gigawatts (GW) by 2035• Additional commitments anticipated, increasing the 2035 forecast to >28 GW• East Coast offtake agreements expected to reach 6 GW in 2019• BOEM has auctioned 15 lease areas:• - 8 Northern lease areas ~16 GW• - 7 Southern lease areas ~12 GW• Further lease auctions anticipated • CAPEX for East Coast offshore windfarms expected to approach ~$100 B by 2035• Infrastructure and supply chain investments will provide additional volume


(NREL – US Department of Energy)

(Picture source: NREL – US Department of Energy)



(Picture source: VEDP)


n Us east COast OffshOre Wind VOlUMe fOreCast

n CVOW PrOjeCt The Coastal Virginia Offshore Wind (CVOW) demonstration project began construction on July 1, 2019 . Two six-megawatt wind turbines will be installed approximately 27 miles off the coast of Virginia Beach in federal waters . Ørsted, a Denmark-based energy company has been awarded an EPC contract from Dominion Energy to build the project .

The two turbines are expected to power 3,000 homes, providing valuable research and serving as a first step toward the development of commercial-scale offshore wind . “The Virginia Offshore Wind demonstration project is another powerful example of the Commonwealth’s position as a leader in renewable energy,” said Governor Northam . Last year, he signed the Grid Transformation and Security Act of 2018, establishing that the CVOW demonstration project is in the public interest and that Dominion Energy can fund the project using existing base rates, with no added cost to ratepayers .


(Source: BVG Associates)



n dOMiniOn PrOjeCt/Virginia COMMerCial lease area Governor Ralph Northam spoke during Land-to-Sea, a two-day offshore wind conference held in Norfolk, VA on Sept 19-20, 2019 . During his speech, Governor Northam made clear his administration’s commitment to Virginia’s offshore wind industry . His remarks followed Dominion Energy’s announcement of their intention to an aggressive timeline for construction of the largest offshore wind energy project in the U .S . off Virginia’s coast . The project will produce 2,600 megawatts of wind energy by 2026, enough to power approximately 650,000 homes . “Offshore wind is an excellent renewable energy source,” said Mark D . Mitchell, Vice President of Generation Construction at Dominion Energy . “[We are] serious about bringing commercial-scale offshore wind to Virginia, giving our customers what they have asked for – more renewable energy .” “As a champion for offshore wind, which will expand and diversify Virginia’s already substantial maritime industry, the Virginia Maritime Association welcomes these developments and looks forward to continuing to play a significant role attracting and fostering a robust offshore wind industry in Virginia,” commented David White, VMA’s Executive Vice President .

n kitty haWk Wind Avangrid Renewables won the Kitty Hawk offshore wind area bid from the federal government to lease 122,405 offshore acres off the coast of North Carolina and Virginia and has begun the highly technical process of studying the area in more detail as part of early stage project development . (Source: www .avangridrenewables .com)

n Virginia’s COMMitMent tO OffshOre WindEditorial by Paul Olsen, ODU The Commonwealth of Virginia and Old Dominion University (ODU) have established an official task force to align, enable and accelerate offshore wind efforts until a formal office for offshore wind is established . With more than 150 members, the Commonwealth’s offshore wind task force benefits from organizational simplicity, offshore wind experience and statewide cooperative spirit . Leading the force is an executive committee comprised of the Virginia Department of Mines, Minerals, & Energy (DMME), Old Dominion University, Tidewater Community College, Dominion Energy, Port of Virginia, Virginia Maritime Association, Reinvent Hampton Roads, Hampton Roads Planning District Commission and Ørsted .

(Picture source: VMA)



Five subcommittees represent critical areas for advancing offshore wind development: project development, supply chain development, workforce development, tech and innovation, and legislative and outreach .

Interested in getting involved in the Executive Committee? Interested in getting involved in the Executive Committee? Please contact Paul Olsen at polsen@odu .edu . Please contact Paul Olsen at polsen@odu .edu .

Virginia’s centralized Atlantic Coast location, as well as our modern maritime infrastructure, position us well to be a supply chain hub for the offshore wind industry . Equal in importance to supply chain development is job creation . We often hear that “offshore wind equals onshore jobs .” Here, our success will be directly related to how quickly we can establish the training and educational programs required to certify our future offshore wind workforce . Jennifer Palestrant, formerly of Tidewater Community College’s SMART Center, was recently appointed to the Chief Deputy position at Virginia’s Department of Mines, Minerals, & Energy (DMME) .

n OPPOrtUnities tO get inVOlVed Virginia’s Hampton Roads region offers a number of unique competitive advantages over other offshore wind business locations on the East Coast . Infrastructure, assets and maritime employment in the Hampton Roads region are unmatched by any other port in the entire United States . In meetings with DMME, industry prospects have described the ability to build partnerships and utilize local assets as a primary driver in their decision-making process .

As a result, DMME has engaged the Virginia Maritime Association (VMA) and the Virginia Ship Repair Association (VSRA), members of which are comprised of local asset owners and managers . The VSRA alone boasts 265 member companies, many with industrial scale

Old Dominion University Researcher, George Hagerman, U.S. Sen., Mark Warner, and ODU Executive Director, Paul Olsen were among the participants at a roundtable of Virginia leaders discussing offshore wind energy. The roundtable was

hosted on August 23, 2019 at ODU. (Picture source: Old Dominion University.)



waterfront capabilities located within the Hampton Roads proximity . The partnerships team is focused on identifying current Virginia suppliers (service providers and manufactures) with core maritime and manufacturing related expertise .

As part of the Commonwealth’s 2018 supply chain opportunity analysis, DMME launched the Virginia Offshore Wind Supply Chain Resource Network Directory, which connects offshore wind developers, wind turbine suppliers, and other prime contractors with Virginia professional services, manufacturers, equipment and material suppliers, and other general service providers relative to all phases of an offshore wind project . Supply chain prospects are encouraged to promote their services by adding their information to the Virginia Offshore Wind Supply Chain New Supplier Form .

(Source https://www .vaoffshorewind .org/engage)

Anticipated US offshore windfarm costs for 2022(Picture source: BVG Associates for Clean Energy States Alliance)



Interested in getting involved in offshore wind opportunities?Interested in getting involved in offshore wind opportunities?Please visit the following website to register your company and view other suppliers:Please visit the following website to register your company and view other suppliers:https://www .vaoffshorewind .org/engagehttps://www .vaoffshorewind .org/engage

Estimated expenditure for East Coast projects 2020 - 2024(Picture source: BVG Associates)



Photos by Backus Aerial PhotographyPhotos by Backus Aerial Photography

117 2020 · 2020. 4. 7. · 124 2020 offshore wind/energy n dominion project/virginia commercial...

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