After Decades of Federal Neglect, Offshore Wind Development Is Finally Becoming a Reality in the US, Thanks to Support from the Obama Administration

Wind Energy offshore USA

A huge energy potential off the North American coasts could be used for the production of environment-friendly current. Photo: Pitopia/Matthias Orgler

Taking big steps After decades of federal neglect, offshore wind development is finally becoming a reality in the US, thanks to support from the Obama Administration.

eter Mandelstam had been waiting four years Projects are quickly moving for the federal government to set construction forward Prules and permitting processes for offshore wind development on the federally owned Outer Con Finally, on Earth Day, April 22nd, Ken Salazar, US tinental Shelf (OCS). As President and founder of Secretary of the Interior, announced the new OCS Bluewater Wind, New Jersey, an offshore wind com rules, effective 60 days after their issuance. Thanks to pany, Mandelstam last year signed the nation’s first the new rules, offshore wind projects are now quickly contract with a utility for some of the output of an off moving forward. The Obama Administration issued the shore wind project. However, he couldn’t move for first five offshore exploration leases for wind energy ward with the project until the federal rules for leas production on June 23rd, 6 to 18 miles off the coast of ing, siting, permitting, and construction were estab Delaware and New Jersey. Mandelstam’s Bluewater lished. “The biggest hurdle to development has been Wind is one of three companies now permitted to con federal government failure under the Bush Adminis struct meteorological towers, which allows the compa tration”, says Mandelstam, whose company, Blue ny to begin collecting wind speed, direction, and inten water Wind Delaware, since June 2008 has had in sity data. Turbines could be online by about 2013 for place a 25-year contract with Delmarva Power for the three companies having received leases – 200 MW from a wind farm planned for 11.5 miles off Bluewater Wind, Fishermen’s Energy, and Deepwater the coast of Rehoboth Beach, Delaware. Wind. “We will need at least one year’s worth of

198 Sun & Wind Energy 9/2009 meteorological data before turbines can be construct says Mandelstam. “There are no land or transmission ed optimally”, said Rhonda Jackson, Director of Com constraints, which reduces the required permitting munications and Outreach, Fishermen’s Energy. process.” Another advantage to offshore wind, according to Rodgers: there’s a much better match “900 GW of offshore wind between supply and demand. “We can produce ener potential” gy at 72 % capacity on the hottest days in New Eng land when energy is needed the most because of the Offshore wind energy offers potential to supply clean, sea-breeze effect”, he explains. In other words, the reliable, and cheap power to US regions that need wind blows more offshore when it’s hot onshore. power most. Of the 48 contiguous states in the US, 28 have coastal boundaries, including the Great Development hurdles Lakes, according to the Energy Information Agency (EIA). These coastal states use 78 % of US electricity. Despite these advantages, offshore wind companies According to the US Department of Energy, 20 % of face many challenges. Today’s technology for com US electricity could come from wind by 2030. One mercial offshore turbines is limited to water depths of fifth, or 54 GW, could come from offshore wind. less than 80 feet, reports Laurie Jodziewic, Manager “There is 900 GW of offshore wind potential in the for Siting Policy, American Wind Energy Association US”, says Mark Rodgers, Communications Director, (AWEA), Washington D.C. “There are no projects pro Cape Wind, Massachusetts. What’s more, the best posed for the West Coast yet because of the deep wa sites for offshore wind – ones in shallow waters, and ter there”, she says. “There is only a limited number with consistent wind speed and direction – are locat of shallow sites.” Deep-water offshore wind turbines ed conveniently next to some of the most densely are currently under development and could provide populated areas in the country, off the New England generating capacity in the future. StatoilHydro of and mid-Atlantic coasts. That means offshore wind Norway and Siemens of Germany have recently in development could avoid the transmission problems stalled the world’s first large-scale floating turbine at plaguing the US right now. a water depth of 220 m (722 feet) located 12 km In addition to avoiding transmission problems, southeast of Karmoy, Norway. The turbine delivers offshore projects do not face the land-use constraints electricity since mid-July. The floating turbine has a onshore projects face. “I expect we will see enhanced centre of gravity deep below the surface and is fas and exponential growth in the offshore markets”, tened to the seabed by three anchor wires. Wind Energy offshore USA

Planned offshore projects in the US

V a n c BRITISH COLUMBIA o u D: Nai Kun Wind Development v e P: Nai Kun r S: 320 MW D: Winergy Power D: Trillium Power P: Winergy South of Long Island PS:Test tower installed CANADA P: Trillium Power Wind 1 I S: 300 MW s S: 710 MW l Vancouver PS:Preliminary stages a PS:Avian and aquatic n studies underway d D: Toronto Hydro D: Winergy Power WASHINGTON P: Winergy Jones Beach Seattle P: Toronto Hydro S: Up to 100 MW S: 940 MW PS:Preliminary stages PS:Looking to install MAINE D: Principle Power meteorological towers P: Tillamook County Offshore Wind S: 250 MW D: Patriot Renewables PS:Proposed P: South Coast NORTH DAKOTA MINNESOTA S: 300 MW PS:Initial avian studies Portland VERMONT NEW MONTANA HAMPSHIRE D: Cape Wind Associates WISCONSIN n P: Cape Wind a io S: 468 MW g MASSACHUSETTS OREGON PS:Favorable MMS review, local i NEW YORK D: Radial Wind e Ontar RHODE IS. P: Radial Wind h Lak and state permitting complete S: 1,950 MW c i CONNECTICUT IDAHO PS:On hold, deep- MICHIGAN D: Fishermen`s Energy D: Deepwater Wind water technology M of New Jersey New York P: Deepwater Wind Rhode Island

e Detroit P: n/a S: 20 MW, 100 MW WYOMING SOUTH DAKOTA k S: 350 MW NEW PS:Federal lease for

a PS:Federal lease for JERSEY meteorological towers L meteorological towers Chicago Atlantic City PENNSYLVANIA NEBRASKA OHIO D: Bluewater Wind IOWA Washington DEL. P: n/a INDIANA S: 348 MW WEST ILLINOIS VIRGINIA MARY- PS:Federal lease for meteorological towers NEVADA D: Delsea Energy LAND UTAH P: n/a San S: more than 100 turbines Francisco D: HydroVolts VIRGINIA D: Deepwater Wind, P: Grays Harbor Wind/Wave PS:Initial permit application PSEG Renewable S: n/a Energy Generation P: Garden State Offshore PS:FERC application filed COLORADO KANSAS D: Bluewater Wind KENTUCKY P: Delaware S: 350 MW MISSOURI CALIFORNIA S: up to 600 MW PS:Proposal chosen by the NORTH PS:25 year PPA with New Jersey Board of CAROLINA Delmarva Power Public Utilities Honolulu TENNESSEE SOUTH OKLAHOMA CAROLINA NEW MEXICO ARKANSAS Los Angeles HAWAII Legend D=Developer MISSISSIPPI ALABAMA ARIZONA GEORGIA P = Project name TEXAS S=Size LOUISIANA PS = Project status

Publisher: Sun & Wind Energy D: Wind Energy www.sunwindenergy.com Systems Technology Layout: Eilers-Media P: n/a S: 150 MW www.eilers-media.de PS:Land leases signed Houston Status: July 2009 MEXICO Source: Own research FLORIDA

In addition to water depth, developers must take the United Kingdom wants 7,000 MW of offshore into account animal migrations, shipping highways, wind turbines. “They are manufacturing them there wind speed, consistency and direction, and commu and putting them in.” US offshore companies will nity opposition. have to get in line and wait for turbines to come from Europe – at a high cost. Waiting for turbines from Europe To help with these challenges, US offshore wind companies look to Europe, which has already prov Another major obstacle to offshore development is en the viability of offshore wind technology, having cost. Bluewater Wind estimates that its 450 MW installed 1,471 MW. “What we would consider com Delaware project will cost approximately mercial technology is based on European technol 3.5 million US$/MW. This is significantly higher than ogy”, says Jodziewic. “It has been proven for a onshore wind farms, which cost on average 1.2 to number of years.” Denmark, Belgium, Sweden, Fin 2.6 million US$/MW, according to the EIA. Despite land, Germany, the United Kingdom, the Nether the high cost, demand for wind turbines is growing, lands, and Ireland currently have offshore wind in which further increases the price. “The manufactur stallations delivering power. US companies are ers are all in Europe and will have to come overseas”, hoping to build off of Europe’s knowledge. “What says Jackson. “They are building so many turbines Bluewater does, is use the best of European know- and expanding their existing capacity.” For example, how – off the shelf, able to be financed, insurable,

200 Sun & Wind Energy 9/2009 V a The Obama Administration, with a fo n c BRITISH COLUMBIA cus on renewable energy, pushed FERC o u D: Nai Kun Wind Development v and MMS to prepare a memorandum of P: Nai Kun e th r S: 320 MW D: Winergy Power understanding. On April 9 , 2009, the D: Trillium Power P: Winergy South of Long Island PS:Test tower installed CANADA P: Trillium Power Wind 1 I S: 300 MW s S: 710 MW agencies reached an understanding, and l Vancouver PS:Preliminary stages a PS:Avian and aquatic nd n studies underway on April 22 , Obama announced that the d D: Toronto Hydro D: Winergy Power new rules had been set. “Obama accom WASHINGTON P: Winergy Jones Beach Seattle P: Toronto Hydro S: Up to 100 MW S: 940 MW plished in his first 100 days what the PS:Preliminary stages PS:Looking to install MAINE D: Principle Power meteorological towers Bush Administration had failed to do for P: Tillamook County Offshore Wind S: 250 MW D: Patriot Renewables eight years”, says Mandelstam. The bot PS:Proposed P: South Coast NORTH DAKOTA MINNESOTA S: 300 MW tom line is that legislatively there is al PS:Initial avian studies Portland VERMONT NEW ways more that could be done, explains MONTANA HAMPSHIRE D: Cape Wind Associates Rodgers. “But there is enough support to WISCONSIN n P: Cape Wind a io S: 468 MW g MASSACHUSETTS really get projects developed now.” OREGON PS:Favorable MMS review, local i NEW YORK D: Radial Wind e Ontar RHODE IS. P: Radial Wind h Lak and state permitting complete S: 1,950 MW c i CONNECTICUT IDAHO PS:On hold, deep- MICHIGAN D: Fishermen`s Energy D: Deepwater Wind

M Need for regional water technology of New Jersey New York P: Deepwater Wind Rhode Island e Detroit P: n/a S: 20 MW, 100 MW WYOMING SOUTH DAKOTA k S: 350 MW NEW PS:Federal lease for cooperation a PS:Federal lease for JERSEY meteorological towers L meteorological towers Chicago With regulatory hurdles out of the way, Atlantic City PENNSYLVANIA D: Bluewater Wind NEBRASKA OHIO offshore wind developers are racing to IOWA Washington DEL. P: n/a INDIANA S: 348 MW WEST get their projects producing power. The ILLINOIS VIRGINIA MARY- PS:Federal lease for meteorological towers NEVADA D: Delsea Energy LAND challenge for developers now is to create UTAH P: n/a San S: more than 100 turbines the most cost-effective, highest perform Francisco D: HydroVolts VIRGINIA D: Deepwater Wind, P: Grays Harbor Wind/Wave PS:Initial permit application PSEG Renewable ing, and consumer-friendly offshore wind S: n/a Energy Generation P: Garden State Offshore PS:FERC application filed COLORADO KANSAS D: Bluewater Wind farms, states John Kourtoff, CEO of KENTUCKY P: Delaware S: 350 MW MISSOURI CALIFORNIA S: up to 600 MW PS:Proposal chosen by the Trillium Power, Ontario. “The greatest NORTH PS:25 year PPA with New Jersey Board of CAROLINA Delmarva Power Public Utilities challenge is regional cooperation.” That Honolulu TENNESSEE would make it easier for his company to SOUTH OKLAHOMA CAROLINA develop several large wind projects in the NEW MEXICO ARKANSAS Los Angeles Great Lakes that cover a region bordered HAWAII by Ontario and several US states. All the Legend D=Developer regions are looking to the Great Lakes for MISSISSIPPI ALABAMA ARIZONA GEORGIA P = Project name offshore wind energy, he says. “We need TEXAS S=Size to work regionally and cooperatively, we LOUISIANA PS = Project status will be much better off than individually. Publisher: Sun & Wind Energy Ontario is just one province. We can use D: Wind Energy www.sunwindenergy.com Systems Technology Layout: Eilers-Media the Great Lakes to be a highway between P: n/a S: 150 MW www.eilers-media.de the US and Ontario”, he says. PS:Land leases signed Houston Status: July 2009 MEXICO Source: Own research In the US, many states are tackling re FLORIDA newable energy on their own in order to meet state Renewable Portfolio Standard mandates. “It only makes sense that constructible – with the American know-how”, says Ontario will be a big player in offshore wind, so why Mandelstam. wouldn’t US states want to work cooperatively?” he says. Companies were afraid that if they work togeth Regulatory battles in US er, they would not get anything out of it. But costs would be higher if companies and states work indi Unlike Europe, the road to offshore wind develop vidually because the scale of the projects would be ment in the US has been a long and arduous regula smaller. “We should bring people together to make a tory battle. The Energy Policy Act of 2005 amended vibrant, long-term industry”, claims Kourtoff. the OCS Act to authorized jurisdiction of the OCS to the Secretary of the Interior. On March 20th, 2006, First project to be online in 2012 the Secretary of the Interior delegated authority to the Minerals Management Service (MMS) to regulate In order to begin establishing a long-term industry, electricity generation on the OCS from sources other several companies have proposed projects along than oil and natural gas. For three years renewable the US East Coast, and now that the permitting rules energy projects were put on hold due to regulatory have been set, construction is likely to start by the uncertainty over which federal agencies had authori end of this year. The first project expected to come ty. Both the MMS and the Federal Energy Regulatory online will be the controversial Cape Wind project on Commission (FERC) claimed authority. the Horseshoe Shoal off the coast of Cape Cod,

Sun & Wind Energy 9/2009 201 Wind Energy offshore USA

Massachusetts. Cape Wind is ahead of the other In order to protect the fishing industry and ensure companies in the permitting process because the wind projects yield minimal impact, Fishermen’s company submitted proposals in 2001, long before Energy is looking at larger, 5 MW turbines, while oth other projects. “The rulings on Earth Day have less er companies are looking at smaller, 3.6 or 2.5 MW impact on Cape Wind than others”, says Rodgers. turbines. “A 350 MW plant only has approximately 70 “The other projects can submit applications and turbines at 5 MW each,” says Jackson. Fewer turbines await environmental approval, but Cape Wind has al result in fewer cables and therefore, less impact on ready done that. We have been in the waiting pro fishing. cess for a long time.” The proposed Cape Wind project will begin construction next year and is slat Great Lakes potential ed for completion in 2012, says Rodgers. There will be 130 wind turbines five miles from shore, result In addition to sites in the Atlantic, the Great Lakes of ing in 420 MW of installed capacity. “In average con fer tremendous potential for offshore wind. “There ditions, we would be providing electricity for 75 % of are 34,500 MW of offshore wind potential off coast of Cape Cod and the surrounding islands, or about the Ontario side of Great Lakes”, says Kourtoff. 180 MW”, says Rodgers. Trillium Power has identified three sites in the Great Bluewater Wind is also taking big steps. “The Lakes totaling 3,700 MW, the single largest portfolio Delaware project will be completed first, followed of offshore wind in the world. The first project, Trillium soon after by a New Jersey project”, says Mandel Power Wind 1 (TPW1), will be located 17 to 28 km off stam. Both should be finished in 2013. In addition to the coast of Lake Ontario and deliver 710 MW, enough Delaware and New Jersey, Bluewater Wind is also to power at least 300,000 Ontario homes. “We have planning projects offshore in Maryland, New York, already had aquatic and avian studies, almost 53 and Rhode Island. years of data, more than any other site in the world”, Another company that received a federal lease, says Kourtoff. Ontario and the Great Lakes offer tre Deepwater Wind, also has several planned projects mendous offshore potential. “Ontario has an oppor along the US East Coast. Deepwater Wind has been tunity to be a global player.” selected by the state of Rhode Island to construct an offshore wind energy project that will provide “US will surpass Europe” 1.3 million MWh per year of renewable energy – 15 % of all electricity used in the state, according to Deep With numerous proposed projects moving forward water Wind. Additionally, Deepwater Wind and PSEG and companies devoted to establishing a strong in Renewables have formed Garden State Offshore En dustry, the future of the offshore wind industry looks ergy, which will develop offshore wind projects for promising, says Mandelstam. “The US will surpass New Jersey. The first project, planned 20 miles due Europe”, he believes. “Energy Secretary Steven Chu east of Avalon, New Jersey, will deliver 345 MW of and President Obama have set up real energy policy wind power to Ocean City, New Jersey. Deepwater and have spoken very clearly that we will see consist Wind also has several other prospective project sites ent and strong energy policies for offshore wind.” This is how the Fishermen’s – one in Maine, Maryland, Delaware, and New York. Mandelstam is convinced that offshore wind is project off the coast of New The final company to receive federal leases for ex the single best energy technology in the US when you Jersey would look like. The ploratory tests offshore is Fishermen’s Energy, a con take into account the price of pollution, climate nearest visible turbine is sortium of 12 private fishing companies in New Jer change, job creation, and transmission. “If you are located three miles away sey. Fishermen’s Energy proposed a 350 MW project, concerned about carbon like most Americans, scien from the shore. which was accepted by PJM, a New Jersey utility, tists, and now the President, the best overall deal is Photomontage: which announced that it wanted 1,000 MW of off offshore wind.” Fishermen’s Energy of New Jersey shore wind energy by 2012 and 3,000 MW by 2020. Reid Smith, Lisa Cohn

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