An Ørsted executive praised President Biden’s plan to ramp up offshore wind generation as the company saw roadblocks removed for its projects.
Click here for a White House summary of the plan.
Ørsted is the developer of Skipjack, a turbine array off the coast of Ocean City and Fenwick Island in Delaware and the far larger Ocean Wind development off the coast of southern New Jersey.
Biden had made offshore wind a centerpiece of his “Build Back Better” pledge made during his presidential campaign.
Biden’s actions stand in stark contrast to those of his predecessor Donald Trump who claimed wind power caused pollution, was unreliable, expensive, and would decimate bird populations. Offshore wind project permitting was delayed but not halted during his administration.
Republicans are expected to criticize the initiative, which comes after limiting new drilling for oil on gas on federal property. The fossil fuel industry claims the job losses will more than offset any job gains from wind power.
Opponents also point to the difficulties in balancing the grid when wind speeds are low. Wind power backers note that there is sufficient time to deal with such issues as the system is built out.
“The Biden Administration, today, has committed America to being a leader in offshore wind with its goal of deploying 30GW by 2030,” David Hardy, CEO of Offshore North America, stated recently. “This action will set our country on a path to maximize our unmatched wind potential to help meet the nation’s clean energy needs. More than that, it reaffirms offshore wind’s ability to launch a new U.S. industry that will provide well-paying union jobs, create economic opportunity, and generate local investment that will benefit all Americans.”
A good day for Ørsted
The Biden announcement came on the same day that Ørsted announced an agreement with the National Oceanic and Atmospheric Administration to share environmental information on its proposed offshore projects.
Ørsted alone is poised to deliver nearly three gigawatts of capacity by the end of 2026. That’s 10 times the electricity generated by the natural gas-fired Garrison plant in Dover.
Also, the Bureau of Ocean Energy Management of the Interior Department announced an environmental review of the Ocean Energy project. Ocean Wind is part of New Jersey’s renewable energy goal of supplying more than 3.2 million households with offshore wind power.
“Ørsted believes in making a concerted effort to work with all stakeholders so that we can grow key learnings and work together to provide data-driven solutions to protect our planet from global warming. New leases offer the industry an opportunity to continue to engage with stakeholders and work together with local industries to usher in an economy that works for everyone,” Hardy stated.
Wind projects draw opposition over fears of tourism losses
Offshore wind comes with opposition from the fishing industry and those worried that wind turbine towers rising several hundred feet will hurt tourism by leaving beachfront homes with less pristine ocean views.
The Glasgow, DE-based Caesar Rodney Institute has been one of the opponents citing a 2016 North Carolina State University study that showed possible damage to tourism.
The offshore industry says the towers will only be specks on the horizon when placed more than 15 miles offshore.
The Skipjack project ran into a controversy when it was found that connecting to the grid at a site in Fenwick Island State Park in Delaware came with environmental issues. The plans were dropped.
Skipjack pushed back to 2026
Ørstead earlier pushed back the Skipjack project until mid-2026 as it looks for a suitable location. It did reaffirm plans to move forward.
Ørsted recently announced the successful completion of the initial phase of Maryland’s first offshore wind staging center at Tradepoint Atlantic, the 3,300-acre global logistics center in Baltimore County, MD.
Ørsted has now completed $13.2 million in port infrastructure upgrades.
Delaware has no direct involvement in the Skipjack project, which the State of Maryland backed. The Skipjack Wind Farm is a 120-megawatt offshore wind farm under development 19.5 miles off the Maryland-Delaware coast. Further information is available at www.skipjackwindfarm.com.
Skipjack is one of two offshore wind projects off the coast of Ocean City that have drawn criticism from local officials who would like to see the projects 30 miles offshore.
No talk of reviving Bluewater Wind
To date, there has been no talk of reviving Delaware’s Bluewater Wind project off the coast of Rehoboth Beach. The project was proposed a decade ago but fell victim to a weak economy, a lack of financing, and higher wind power costs at the time.
In recent years, the cost of wind power has dropped. However, taller towers and turbines visible from the beach and a trend toward larger projects could doom smaller projects like Bluewater.
Gov. John Carney has formed a study group to look at offshore wind in Delaware but has not announced any initiatives.
Both the Ocean Wind and Skipjack projects would aid the Delaware economy through construction jobs. Delaware workers have long done maintenance on the nuclear power plants across the Delaware River in New Jersey.
University of Delaware researchers have identified two sites (one near Delaware City) that could be used for wind turbine towers that can be as tall as the Statue of Liberty.
While New Jersey requires such work to be done within the state, researchers said demand for turbines could make the Delaware site an attractive option.
In the U.S., Ørsted operates the Block Island Wind Farm, America’s first offshore wind farm, and constructed the two-turbine Coastal Virginia Offshore Wind pilot project – the first turbines to be installed in federal waters. Ørsted has secured over 2,900 megawatts of additional capacity through five projects in the Northeast and Mid-Atlantic.
Ørsted Offshore’s North American business is jointly headquartered in Boston and Providence, RI. The company is headquartered in Denmark.
