Danish developer Orsted has agreed a deal with the Virginia Port Authority to lease a portion of the Portsmouth Marine Terminal in the US for offshore wind staging materials and equipment.
Orsted could use the site for its work on the Coastal Virginia offshore wind project, which it is developing with Dominion Energy, as well as for staging materials and equipment for projects up and down the US east coast, the Virginia governor’s office said.
If fully executed, the lease will run to at least 2026, during which time Orsted plans to install nearly 3GW of wind farms in the US.
The initial lease is for 0.7 hectares to 2026, with options to expand to an additional 16 hectares.
The agreement, if fully executed, could be worth nearly $13m in lease payments and result in site upgrades worth more than $20m for cranes and improvements to a section of the terminal’s berth to ensure heavy load capacity.
Those investments would prepare the site for activities such as pre-assembly, staging, and loading of wind turbines for other Orsted projects, the governor’s office said.
Virginia Governor Ralph Northam said: “This is a big step towards making Virginia a leader in wind energy and offshore wind manufacturing.
“With the Port of Virginia at its helm, the Hampton Roads region has the trained workforce and the nautical know-how to become a vital hub for offshore wind development.
“We welcome Orsted and look forward to the tremendous opportunities ahead of us.”
Orsted North America offshore chief executive Thomas Brostrom said: “It is our hope that today’s announcement demonstrates the potential we see in Virginia as a central player in the burgeoning US offshore wind industry.
“Much activity will be taking place in Virginia and beyond in the coming months and years, and Portsmouth Marine Terminal is well-situated to meet our needs both now and in the future.”
Virginia Port Authority chief executive and executive director John Reinhart said: “This is a strategic decision by leaders in the offshore wind industry to take advantage of Virginia’s world-class port.
“By welcoming Orsted and allowing it to leverage the Portsmouth Marine Terminal, we could jumpstart an almost entirely new industry.
“The result is job creation, economic investment, diversification of the Virginia economy, and clean, renewable energy.”