Salem Offshore Wind Terminal Takes Significant Step Forward - gCaptain
Salem Offshore Wind Terminal Takes Significant Step Forward
The Massachusetts Clean Energy Center (MassCEC), Crowley Wind Services, and the City of Salem have announced the transfer of ownership and plans for the Salem Offshore Wind Terminal. This site, previously an oil and coal-fired power plant, is set to become the second port specifically constructed to support offshore wind farm construction in Massachusetts. The Salem Offshore Wind Terminal is also one of the few sites that will facilitate the construction and installation of floating offshore wind in the Gulf of Maine.
The agreement includes MassCEC’s purchase of 42 acres on Salem Harbor and a 5-acre parcel transfer to the City of Salem, including the port’s existing deep-water berth.
Salem, one of America’s oldest port cities, has a deep roots in the blue economy. The site for the Salem Offshore Wind Terminal itself was formerly the site of an oil and coal power plant that closed in 2014.
Crowley, which acquired the property in 2022, will oversee site redevelopment and improvements, and then operate the terminal. The City of Salem has leased the berth and its acreage to further support the effort. Construction is set to begin in 2024, with the port projected to open in 2026.
Vineyard Wind and Crowley to Turn Historic New England Harbor Into Offshore Wind Port
MassCEC also owns and operates the the New Bedford Wind Commerce Center, the first dedicated offshore wind port in Massachusetts. Vineyard Wind currently leases the facility and announced the first offshore wind power delivery in the state in January.
This purchase and redevelopment of the Salem Offshore Wind Terminal site aligns with Massachusetts’ commitment to achieving net-zero carbon emissions by 2050.
Governor Maura Healey praised this development, highlighting that MassCEC’s offshore wind infrastructure has given Massachusetts a competitive edge in this growing industry. “Harnessing the power of the harbor has always been key to Salem’s success. This port once received clipper ships that brought international trade to our shores, and now will serve as a hub for offshore wind, driving economic development for the entire state,” said the Governor.
Lieutenant Governor Kim Driscoll, Secretary of Energy and Environmental Affairs Rebecca Tepper, and Salem Mayor Dominick Pangallo also expressed their excitement and support for the project, emphasizing how this transformation aligns with the state’s strategic climate goals, serving as a testament to Massachusetts’ clean energy transition.
Since 2022, Crowley Wind Services has been transforming the former coal-fired power plant into a site for offshore wind development.
“We are excited to continue advancing the opportunity for clean, renewable offshore wind energy for Massachusetts and beyond through this dynamic public-private partnership,” said Bob Karl, senior vice president and general manager of Crowley Wind Services. “We appreciate the leadership and support from the Healey-Driscoll Administration and the Legislature in making our next steps a reality, as well as the ongoing collaborations with the City of Salem and its residents to create economic investment and jobs at a world-class marshalling port for offshore wind.”
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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.