Crowley, Morgan Stanley Form US Offshore Wind Pact | Offshore Wind - Offshore WIND
Crowley, Morgan Stanley Form US Offshore Wind Pact | Offshore Wind
Crowley, Morgan Stanley Form US Offshore Wind Pact
Crowley and Morgan Stanley Investment Management (MSIM), through Morgan Stanley Infrastructure Partners (MSIP), have formed a new joint venture to advance offshore wind energy solutions for the United States.
The joint venture will combine Crowley’s end-to-end maritime and logistics capabilities through the newly created Crowley Wind Services Holdings and the financial knowledge of MSIP.
MSIP and Crowley’s partnership will focus on repurposing and operating existing US port facilities and leasing them under long-term contracts to offshore wind developers, according to the press release.
The terminals will support the manufacturing, assembly, and storage of wind farm components as well as provide developers with maritime services such as Jones Act-compliant feedering vessels to transport components from ports to offshore wind installations.
“The partnership of our two companies will help lead the growth of the wind energy sector and provide clean, renewable energy for the U.S. through high-quality maritime and logistics operations and services. Our collaboration will help create not just more value as a business, but cleaner, more sustainable energy for our communities,” said Bob Karl, Senior Vice President and General Manager, at Crowley Wind Services.
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As reported in October last year, Crowley bought 42 acres at the former Salem Harbor Station, which will be redeveloped and will serve as the future home of the Salem Harbor Wind Terminal, the second major offshore wind port terminal in the state.
In addition, the company is pursuing the development of a US West Coast terminal in Eureka, California, in a public-private partnership. Crowley also has a right-of-first-refusal agreement to lease and potentially develop a wind services terminal at Port Fourchon, Louisiana.
Investment funds managed by MSIP, a private infrastructure fund platform within MSIM, will hold a majority stake in Crowley Wind Services Holdings, while Crowley will operate the business.
“In our view, the U.S. offshore wind industry is in its early stages with ambitious goals to develop 30 gigawatts of capacity from offshore wind by 2030 and unlock a pathway to 110 gigawatts by 2050,” said Daniel Sailors, Managing Director, MSIP.
“We believe port infrastructure is essential to the build-out and long-term maintenance of offshore wind projects and we are excited to partner with Crowley to provide the foundational infrastructure that will enable the development of this important industry.”
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Related Knowledge Center: Offshore wind energy
Over the next decade, U.S. offshore wind power is expected to grow from a single 30-megawatt wind farm off Rhode Island to more than 2,000 MW of capacity along the Atlantic Seaboard. There are contracts for wind power off the coasts of Massachusetts, Connecticut, New York, Maryland, New Jersey, Rhode Island, and Virginia.
The National Renewable Energy Laboratory has estimated the United States has over 4,000 gigawatts (GW) of offshore wind potential, enough to power the country four times over.
The growth in part being spurred by state solicitations, including in New York, where then-Gov. Andrew Cuomo (D) set a commitment of 9,000 MW of offshore wind by 2035, and in Connecticut, where in June 2021, Gov. Ned Lamont (D) signed legislation authorizing the construction of 2,000 MW of offshore wind by 2030.
The offshore development is also being driven by an investment tax credit set to end in December 2019 and is equal to 12 percent of expenditures. U.S. Sens. Susan Collins (R-Maine) and Tom Carper (D-Del.) have introduced a bill to extend the tax credit for up to eight years.
The Interior Department has held eight competitive lease sales that resulted in 15 offshore wind leases over 1.7 million acres that has the potential for 21 GW of capacity. In February 2022, the Bureau of Ocean Energy Management completed a bidding process that realized $4.37 billion for 488,000 acres across six lease areas in federal waters off New York and New Jersey.
Projects have also been proposed off the Southeast coast, off California and Hawaii, and for the Great Lakes.