MassCEC buys Salem land to build wind farms - The Boston Globe

MassCEC buys Salem land to build wind farms

The Massachusetts Clean Energy Center has acquired land for its second terminal for offshore wind farm construction by completing a $30 million purchase this week of 42 acres on Salem Harbor.

The quasi-public agency’s acquisition of the Salem land, once used for a coal- and oil-fired power plant, from Crowley Wind Services underscores how state policymakers are doubling down on offshore wind power even as the nascent industry faces numerous financial hurdles. State officials view it as crucial to weaning the region off of the natural gas that supplies roughly half of New England’s power generation today. MassCEC’s first offshore wind terminal, in New Bedford, has been busy as Vineyard Wind crews stage construction for that wind farm, a portion of which started generating enough power for roughly 30,000 homes this week. When complete, that project could support up to 400,000 homes.

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Crowley purchased the Salem land in 2022 for its own use, to serve offshore wind farm developers, but state officials decided the port should be publicly owned, given the subsidies planned for what will be called the Salem Offshore Wind Terminal. The state’s $30 million purchase price repays Crowley for the amount the Florida-based company paid to acquire the property. Crowley will still be the terminal’s main landlord, and has signed a 25-year ground lease with MassCEC to operate the terminal on the agency’s behalf.

MassCEC’s board has approved an additional $35 million for upgrades such as dredging, pile-driving, and electrical work, and the project also won a nearly $34 million federal grant. Crowley expects to finish the roughly $300 million project in 2026, and will pay MassCEC a percentage of the lease revenue from offshore wind developers, starting five years after the project’s completion. The first tenant lined up is Avangrid’s Commonwealth Wind, although that project has been delayed because of financial issues.

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As part of the land deal, MassCEC transferred a five-acre portion to the city of Salem, which leased the parcel back to MassCEC for 99 years, all for nominal payment. Crowley also reached a community benefits agreement with city officials and community groups that will bring nearly $9 million to the city over 25 years for everything ranging from schools to public safety departments to scholarships for maritime careers. Mayor Dominick Pangallo said the new terminal represents an opportunity to secure a clean energy future for the city after generations lived in the shadow of a coal plant.

Crowley plans to serve wind farms proposed for waters south of New England first, and then eventually pivot to projects in the Gulf of Maine. The company expects to employ eight long-term employees in Salem, but could ramp up to 30 during busy periods, in addition to as many as 150 temporary workers for tenants and subcontractors when wind farms are under construction.

Jon Chesto can be reached at jon.chesto@globe.com. Follow him @jonchesto.