NJ Receives New Investment For Offshore Wind Project

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United States Secretary of Energy Steven Chu

United States Secretary of Energy Steven Chu

WASHINGTON, D.C. – U.S. Energy Secretary Steven Chu today announced an offshore wind award for a project off the coast of Atlantic City. As part of the Energy Department’s broader efforts to launch an offshore wind industry in the United States, the Department announced today seven projects across the country will support innovative offshore installations in state and federal waters for commercial operation by 2017.

“The United States has tremendous untapped clean energy resources, and it is important for us to develop technologies that will allow us to utilize those resources in ways that are economically viable,” said Chu. “Today’s announcement of awards to the first offshore wind projects in the U.S. paves the way to a cleaner, more sustainable and more diverse domestic energy portfolio that develops every source of American energy.”

“New Jersey has the most abundant offshore wind resources in the nation. If we can develop the technology and make smart investments, we can make our state the center of this emerging industry – creating good jobs, boosting our economy, and improving the environment,” said U.S. Sen. Robert Menendez.

The New Jersey project, led by Fishermen’s Atlantic City Windfarm, plans to install up to six direct-drive turbines in state waters three miles off the coast of Atlantic City. The project will result demonstrate an advanced bottom-mounted foundation design and innovative installation procedures. The company expects this project to achieve commercial operation by 2015.

Offshore wind represents a large, untapped energy resource for the United States – offering over 4,000 gigawatts of clean, domestic electricity potential, four times the nation’s current total generation capacity. According to a new report commissioned by the Energy Department, a U.S. offshore wind industry that takes advantage of this abundant domestic resource could support up to 200,000 manufacturing, construction, operation and supply chain jobs across the country and drive over $70 billion in annual investments by 2030. Offshore wind represents an economic and energy opportunity that could mirror the success of land-based wind development.

Last year, land-based wind power represented 32 percent of all new electric capacity additions in the U.S., accounting for $14 billion in new investment. Nearly seventy percent of the equipment installed at those U.S. wind farms – including wind turbines and components like towers, blades, gears and generators – is now from domestic manufacturers, doubling from 35 percent in 2005. The Production Tax Credit (PTC), which is set to expire at the end of this year, has been a major driver of this tremendous expansion – helping to employ thousands of Americans and launch new businesses across the country. To continue the growth of U.S. wind energy production and component manufacturing, the Administration has called on Congress to extend successful clean energy tax credits like the PTC.

The New Jersey project is one of seven Energy Department awards announced today that will help speed the deployment of stronger, more efficient offshore wind power technologies and showcase innovative technologies – helping to further lower costs and drive greater performance. These projects will also help clear hurdles to installing utility-scale turbines in U.S. waters, connecting to the power grid and navigating new siting and permitting processes. The Energy Department will work with each project to test these innovations in real offshore environments and conduct comprehensive instrumentation and data analysis that will help accelerate future U.S. offshore wind deployment.

In the initial phase, each project will receive up to $4 million to complete the engineering, design and permitting phase of this award. The Department will select up to three of these projects for follow-on phases that focus on siting, construction and installation and aim to achieve commercial operation by 2017. These projects will receive up to $47 million each over four years, subject to Congressional appropriations.


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