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Contracts for Empire Wind 2 and Beacon Wind Projects are Finalized

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NY Governor Kathy Hochul has announced the finalization of contracts between the New York State Energy Research and Development Authority (NYSERDA) and Empire Wind Offshore LLC and Beacon Wind LLC, each a 50-50 partnership between Equinor and bp, for the Empire Wind 2 and Beacon Wind offshore wind projects, representing a key milestone in the advancement of offshore wind development in New York State.
Contracts for Empire Wind 2 and Beacon Wind Projects are Finalized
Courtesy of NREL

"We know what it takes to build and sustain for the future, it's in our DNA as New Yorkers," Hochul said. "By advancing these significant offshore wind projects, we can maintain our cadence for developing projects that will spur much-needed green job creation and investment. No state has felt the impacts of climate change more than New York State, and now more than ever, we can continue to lead the way with our ambitious, nation-leading vision to transition to a renewable energy and a cleaner, greener future."

Today's announcement formally closes the State's second offshore wind competitive solicitation and also includes the first awards for the State's Offshore Wind Training Institute. Coupled with this week's issuance of the Bureau of Ocean Energy Management's (BOEM) Final Sale Notice for the New York Bight and the State of the State announcement Link opens in new window - close new window to return to this page. of a nation-leading $500 million investment in offshore wind ports, manufacturing, and supply chain to be integrated within NYSERDA's 2022 solicitation, these events represent a significant step forward in advancing the Climate Leadership and Community Protection Act goal to develop 9,000 megawatts of offshore wind by 2035.

U.S. Secretary of Energy Jennifer M. Granholm said, "Hats off to Governor Hochul for taking a huge step towards lowering energy bills for New York households, creating thousands of good-paying jobs, and advancing President Biden's goal of a robust offshore wind industry in America. We can and will overcome the challenge of climate change, and we'll do it one clean energy worker at a time."

NY Senator Gillibrand said, "As we celebrate New York's innovation in clean energy this week in Albany, I'm thrilled to announce this key partnership between the New York State Energy Research and Development Authority and Empire Wind Offshore LLC and Beacon Wind LLC. This marks another milestone in our state's leadership and innovation in clean energy and offshore wind development. I look forward to continuing our great work to bring clean energy jobs and technology to New York."

The 1,260-megawatt Empire Wind 2 and 1,230-megawatt Beacon Wind projects were provisionally awarded in January 2021 as a result of NYSERDA's second offshore wind competitive solicitation. Expected to enter into commercial operation in 2027 and 2028, respectively, the projects will strengthen New York's economy and further drive investments in ports to directly support offshore wind projects while establishing New York as the hub of the offshore wind supply chain. NYSERDA payments to the projects will commence once they obtain all required permits and approvals, complete construction, and begin delivering power to New York.

The final project contracts are available on NYSERDA's website and include commitments to the following key benefits:

  • Unprecedented public and private funding commitments of $644 million in port infrastructure, including:
    • $357 million in the nation's first offshore wind tower manufacturing facility to be built at the Port of Albany
      • More than $287 million in an offshore wind staging and assembly facility at the South Brooklyn Marine Terminal (SBMT), owned by the City of New York and managed by New York City Economic Development Corporation (NYCEDC)
    • More than $8.9 billion in anticipated in-state spending and the creation of more than 5,200 jobs backed by prevailing wage and project labor agreement commitments.
  • The average bill impact for customers will be approximately 0.8 percent, or about $0.95 per month. Total project costs, including a cost-effective average all-in development cost of $80.40 per megawatt hour, are approximately seven percent lower than those of NYSERDA's 2018 awards, signaling offshore wind is a competitively priced renewable energy resource with tremendous benefits.

President of Equinor Wind US Siri Espedal Kindem said, "Today's announcement sets Equinor and bp on the path to provide over 3.3 GWs of offshore wind power for New York. It also offers a large-scale, tangible demonstration of the incredible economic activity and carbon reduction potential being driven by New York's green energy transition. We are proud to help lead the growth of this exciting industry in New York."

Keeping pace to be the U.S. leader in the offshore wind industry, New York will launch its third statewide solicitation round in early 2022. As announced in Hochul's 2022 State of the State address, NYSERDA's next solicitation is expected to result in at least 2 gigawatts of new projects — enough to power 1.5 million homes, bringing the state's combined total to more than 4.5 million homes powered by offshore wind. NYSERDA will couple this procurement with a $500 million offshore wind infrastructure investment to catalyze private investments to build the critical infrastructure needed to assure New York's prominence as the hub for this burgeoning industry. The solicitation will include improvements to the approach for offshore transmission based on recommendations from the New York State Power Grid Study, increased emphasis on in-state manufacturing, inclusive economic development and climate equity, an emphasis on close relations with New York's labor force including construction backed by prevailing wage and project labor agreements, and additional scoring credit for projects that propose to repurpose existing downstate fossil-based electric generation infrastructure and utilize energy storage to enhance future system reliability.

Offshore Wind Training Institute

Also announced was the first round of competitive awards under the State's $20 million Offshore Wind Training Institute, the largest public investment in offshore wind workforce development by any state in the U.S. Through a partnership between the State University of New York's Farmingdale State College and Stony Brook University on Long Island, the training institute aims to advance offshore wind training programs and the educational infrastructure needed to establish a skilled workforce that can support the emerging national offshore wind industry. The Institute will certify and train 2,500 New York workers beginning this year to support both offshore and onshore renewable energy projects.

The first two winning proposals will receive a combined $569,618 to support early training and skills development for disadvantaged communities and priority populations - including veterans, individuals with disabilities, low-income individuals, homeless individuals, and single parents - in both the Capital Region and New York City. Awardees include:

  • Hudson Valley Community College in Troy, NY (HVCC)
  • LaGuardia Community College in Queens, NY (LAGCC)

To help build a strong pipeline for the Capital Region's offshore wind initiative, HVCC recently began offering a two-year associate degree in welding and fabrication and will focus student recruitment efforts on priority populations in urban and rural disadvantaged communities, providing full or partial scholarships to participants. Foundational welding skills training will be provided by the Capital Region Educational Opportunity Center, a division of HVCC with additional non-credit training and certifications be provided at the college's main campus. The college will also partner with regional manufacturers building turbine components to provide a skilled workforce pipeline of welders and fabricators, aiming to train 75 individuals, including 65 from priority populations and disadvantaged communities.

LAGCC is partnering with Siemens Gamesa to build an inclusive offshore wind workforce that ensures a robust local talent pipeline for the construction, repair, and maintenance of offshore wind facilities in the New York City metro area. The college will convene employers to detail the skill gaps for both new entrants to the workforce and incumbent workers in the construction trades to help inform and develop a best-in-class custom curriculum. A total of fifty low-income individuals from the Brooklyn-Queens waterfront will be trained to work as offshore wind technicians.

Penny Hill, Dean of Economic Development and Workforce Initiatives for HVCC, said, "Hudson Valley Community College is committed to helping supply the workforce for New York State's clean energy future. In addition to those trained in welding and fabrication, the college is ready to provide other educational opportunities to support the offshore wind industry. We look forward to partnering with manufacturers to provide job training and build stronger, more resilient communities."

Adrienne Esposito, Executive Director, Citizens Campaign for the Environment said, "This announcement is one step forward for wind power, and a giant leap for a cleaner energy future. It is thrilling to see significant progress that guides our transition from fossil fuels to renewable energy. The public strongly supports this transition and New York is delivering! As we build a green economy and advanced offshore wind, we are fulfilling the commitment to make New York a leader in the battle to fight climate change. Thank you to Governor Hochul and NYSERDA for continuing to forge a pathway of progress."

These advancements build on New York's continued responsible and cost-effective approach to developing offshore wind, including NYSERDA's recently published Guiding Principles for Offshore Wind Stakeholder Engagement, and Request for Information seeking feedback from the public and interested stakeholders to identify topics to consider in the analysis of offshore and onshore cable corridors. NYSERDA will also initiate a new Offshore Wind Master Plan 2.0: Deep Water to unlock the next frontier of offshore wind development this year.

New York State has five offshore wind projects in active development, the largest portfolio in the nation. This initial portfolio totals more than 4,300 megawatts and will power more than 2.4 million New York homes and is expected to bring a combined economic impact of $12.1 billion to the state. The projects are also expected to create more than 6,800 jobs in project development, component manufacturing, installation, and operations and maintenance. Achieving the State's 9,000 megawatt by 2035 goal will generate enough offshore wind energy to power approximately 30 percent of New York State's electricity needs, equivalent to nearly 6 million New York State homes, and spur approximately 10,000 jobs.

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