Orsted has struck a deal with the New York town of East Hampton to allow installation and maintenance of the export cable for the 130MW South Fork offshore wind farm.
The so-called ‘host community’ agreement for the up 15-turbine development in federal US waters 48km east of Montauk Point, Long Island, will only take effect if the project gets approval from New York state.
Under the proposed agreement, Orsted would make two initial “milestone payments” of $500,000 each to the town.
The first non-refundable payment would be made within 90 days of the agreement taking effect; the second would be made within 90 days of beginning construction.
In return, East Hampton would grant easements required to install the over six kilometre offshore portion of 138KV electricity transmission line nine metres beneath a public beach in Wainscott.
Orsted would then make 25 annual payments beginning at $870,000 the first year and increasing by 2% each year for a total payment of approximately $28.9m.
A separate easement agreement, still under discussion, would impose a number of construction restrictions, environmental protections and restoration clauses after the cable is installed, or if the easement is ever terminated.
Discussions between East Hampton and Orsted had been ongoing since 2018.
East Hampton Town supervisor Peter Van Scoyoc said: “Offshore wind energy represents an important component that will help the Town of East Hampton achieve its 100% renewable energy goal.
“The East Hampton Town Trustees are looking forward to being able to apply the proceeds of the host community agreement to projects that will protect and restore our local environment, from maintaining the ecosystems of local waters to increasing productivity in those waters for our local fisheries.”
The project is also being reviewed by the US Federal Bureau of Ocean Energy Management.