US Wind plans to develop Maryland’s first facility for manufacturing offshore wind foundations in Sparrows Point as part of an agreement with Tradepoint Atlantic, the wind farm developer announced on Tuesday.
As part of a new agreement with Tradepoint Atlantic, the Sparrows Point-based global logistics center, US Wind will lease 90 acres at the Sparrows Point Shipyard, the former home of Bethlehem Steel, for steel fabrication for its offshore wind initiative.
Under the 2019 Clean Energy Jobs Act, Maryland must get at least 50% of its energy from renewable sources, such as wind and solar power, by 2030. The law requires at least 1,200 megawatts of that to be offshore wind energy.
US Wind is a subsidiary of Italian renewable energy company Renexia SpA, and in 2014 it began leasing 80,000 acres off the coast of Ocean City for a wind farm.
The company will initially invest $77 million into the Sparrows Point site to support the first phase of an offshore wind project, called “MarWin,” which will build a 22-turbine offshore wind farm.
“Because of the successes we’ve achieved in the development of MarWin, US Wind is ready to offer Maryland its most ambitious clean energy project to-date and, with it, the state’s first permanent offshore wind steel fabrication facility,” US Wind CEO Jeff Grybowski said in a statement.
The project “will give Maryland the opportunity to bring steel back to Baltimore and become the epicenter of offshore wind manufacturing,” he said.
Later, US Wind plans to launch the second phase of the project, called “Momentum Wind,” which will build an additional 82 turbines, expected to generate 1,200 megawatts of energy.
The Baltimore Sun reported that the Maryland Public Service Commission in 2016 approved the first phase of the project, but the company will need approval for the second phase to move foward with the expansion.
The Sparrows Point Steel site will be built in conjunction with Momentum Wind.
Tradepoint Atlantic Managing Director Kerry Doyle said the expansion of offshore wind operations and the opportunity to welcome steel manufacturing back to Sparrows Point are a “full-circle moment” for Tradepoint Atlantic.
“We are here today because both the private and public sectors have consistently pulled together to reimagine this iconic site and once again make it a place where thousands of hard-working Marylanders could find good paying jobs and provide for their families,” Doyle said in a statement. “US Wind’s vision for the future and commitment to establishing critical elements of the offshore wind supply chain at Tradepoint Atlantic is transformational and we look forward to partnering with them for many years to come.”
Doyle added, “Ultimately, there is much work to be done to keep Maryland well-positioned in this emerging industry and Tradepoint Atlantic will continue to be a national leader pushing for even greater growth and success. As Marylanders, we should be very proud – offshore wind is here, and steel is back.”
US Wind estimates that the projects will bring approximately 3,500 direct construction jobs and about 100 direct operations jobs.
Once fully operational, Sparrows Point Steel will support more than 500 local, permanent jobs, according to US Wind. The company added that over a 20-year period the site will generate more than $1 billion in labor income and increase Maryland’s GDP by $6.9 billion.
Gov. Larry Hogan described the partnership between US Wind and Tradepoint Atlantic as “innovative, transformative, and forward-thinking.”
“Offshore wind presents a once-in-a-generation opportunity for the state of Maryland to expand and diversify our economy and our energy portfolio,” Hogan said. “The job creation potential and associated economic benefits for the broader supply chain of offshore wind development is an absolute gamechanger.”
Hogan added that Maryland is a “prime location” for offshore wind development, which he hailed as an industry on the rise.
“For six and a half years now, our state has been leading the charge when it comes to supporting responsible, clean and renewable energy projects,” he said. “We’re proud to continue setting an example for the nation of strong environmental leadership.”
Baltimore County Executive Johnny Olszewski Jr. also praised the partnership and the impact the projects are expected to have on Sparrows Point.
“Tradepoint Atlantic in Baltimore County offers an ideal location for the development of an offshore wind industry in Maryland, and I’m thrilled that US Wind and others are investing in our community, creating jobs and building a sustainable future,” Olszewski said in a statement. “The legacy of Sparrows Point is one built on good jobs for families, and I’m excited about the prospect of the return of manufacturing to this storied site.”
