Community Offshore Wind Awarded NYSERDA Offtake Contract to Develop 1.3 GW of Offshore Wind for New York
NEW YORK, Oct. 24, 2023 /PRNewswire/ -- New York State Governor Kathy Hochul today announced that Community Offshore Wind, a joint venture of RWE and National Grid Ventures, was provisionally awarded a 1.3 gigawatt (GW) offtake contract as part of the state's third solicitation for offshore wind.
- RWE and National Grid Ventures' joint venture in the New York Bight, Community Offshore Wind, successful in NYSERDA's third offshore wind solicitation with a provisional offtake award of 1.3 GW for new offshore wind capacity to power at least 500,000 U.S. households.
- The first phase of Community Offshore Wind will generate $3.3 billion USD in economic benefits for New York State and create over 800 new jobs.
- Community Offshore Wind's hyper-local, people-first approach and New York-based team commits $530 million to disadvantaged communities over the total project lifetime.
- The project will significantly contribute to supply chain localization along the East Coast of the U.S., including new blade and nacelle manufacturing facilities.
- The project will reduce New York State electricity-system carbon emissions by up to 5 percent.
NEW YORK, Oct. 24, 2023 /PRNewswire/ -- New York State Governor Kathy Hochul today announced that Community Offshore Wind, a joint venture of RWE and National Grid Ventures, was provisionally awarded a 1.3 gigawatt (GW) offtake contract as part of the state's third solicitation for offshore wind. The project will be developed as the first of multiple phases located within Community Offshore Wind's 3.2 GW seabed lease in the New York Bight, acquired during a federal auction by the Bureau of Ocean Energy Management (BOEM) in 2022.
The first phase of the project, which will deliver enough clean energy to power at least 500,000 U.S. households, is expected to reduce New York's electricity system-related carbon emissions by up to 5 percent from the New York Independent System Operator (NYISO) 2031 baseline scenario. The project awarded by NYSERDA will interconnect into Brooklyn, New York to deliver new offshore wind capacity.
Community Offshore Wind is poised to accelerate New York's progress toward ambitious climate and energy goals, while simultaneously delivering major economic benefits and robust workforce development investments for New Yorkers across the state. The project is expected to generate $3.3 billion in incremental economic benefits for New York, committing $530 million in expenditures and labor to disadvantaged communities over the total project lifetime. Further, the project will create more than 800 good-paying jobs over the life of the project, prioritizing those from disadvantaged communities, local companies and the union workforce.
Doug Perkins, President and Project Director of Community Offshore Wind: "Community Offshore Wind will propel New York toward its ambitious climate and clean energy goals, while cementing the state as a hub for the continued development of offshore wind in the Northeast. We look forward to working with NYSERDA and our partners to deliver reliable, clean power to hundreds of thousands of New York homes and businesses, while ensuring workers in every corner of the state have the support and services they need to pursue jobs in the growing offshore wind industry."
Sam Eaton, CEO of RWE Offshore Wind Holdings, LLC: "The RWE team, in collaboration with our partners at National Grid Ventures, is grateful to Governor Hochul and NYSERDA for the opportunity to deliver one of the largest offshore wind projects in the U.S. while creating good-paying union jobs, localizing the offshore wind supply chain, and generating long-lasting economic benefits for disadvantaged communities. Today's announcement solidifies New York's position as a national leader in the energy transition with a sincere commitment to achieving its ambitious climate goals. We look forward to partnering with the State to deliver a world-class project."
Pat Johnson, Vice President and Deputy Project Director of Community Offshore Wind: "As a company with longstanding roots in New York, we are committed to investing in the state's workers, families and businesses. Our project will bring billions of dollars in economic activity and growth to communities across New York, and build an in-state supply chain that will create and keep thousands of new clean energy jobs in the state for generations to come. We thank NYSERDA for trusting Community Offshore Wind to be New York's clean energy partner, and we are proud to work hand-in-hand with Governor Kathy Hochul and the state to deliver renewable power for New Yorkers."
Will Hazelip, President of National Grid Ventures Northeast: "Community Offshore Wind will further establish New York as a national leader in the clean energy transition, and we're grateful to Governor Hochul and NYSERDA for this recognition of our shared commitment to a future powered by renewables. National Grid Ventures is a longstanding partner to New York State, and we believe firmly in building a project that delivers far more than clean energy for New Yorkers – from new jobs, to impactful local investments and new workforce and economic development programs that will prepare workers and communities alike to take advantage of the opportunities the clean energy transition will create. In partnership with RWE, we look forward to continuing our community engagement with New York workers, families and businesses to deliver reliable, clean energy for all."
NYSERDA President and CEO Doreen M. Harris said, "Today, New York is demonstrating our national leadership once again with this latest portfolio of offshore wind awards to grow our green economy, tackle climate change and transform the way we power our homes and businesses. RWE and National Grid Venture's Community Offshore Wind project will bring significant economic development and family-sustaining jobs to New York communities, while helping the State continue to advance toward the achievement of our aggressive climate and clean energy goals."
As part of the offtake award from NYSERDA, Community Offshore Wind will play a significant role in strengthening the domestic supply chain. This includes a commitment to purchasing New York made blade and nacelles, in partnership with General Electric (GE).
The project will also contribute toward developing the state's offshore wind workforce, with a direct investment of $41 million in economic development and workforce programs designed to favor disadvantaged communities, New York Minority and Women-Owned Business Enterprises (MWBE) and Service-Disabled Veteran-Owned Small Business (SDVOB) businesses. Part of this investment includes a $10 million childcare financial assistance program to support parents who are working in and training for offshore wind careers, in partnership with United Way of New York State.
Committed to being a good environmental steward, Community Offshore Wind will also dedicate $38 million in wildlife and fisheries research, mitigation, and enhancement. This is in addition to the project's recent announcement to partner with the National Oceanic and Atmospheric Administration (NOAA) on a first of its kind Cooperative Research and Development Agreement.
RWE is one of the largest offshore wind companies with nearly 2,000 offshore wind experts globally. Its unparalleled expertise over the last 20 years has resulted in 19 offshore wind farms in operation, worldwide and the completion of Kaskasi offshore wind farm off the German coast at the end of last year. The U.S. plays a key role in RWE's strategy to grow its renewables business. Across three federal seabed auctions, RWE has grown an offshore wind development pipeline of 6 GW (pro rata) including lease areas to develop fixed bottom offshore wind in the New York Bight and Gulf of Mexico, and a lease area of the coast of northern California to develop the company's first commercial scale floating wind project. These seabed awards have positioned RWE as the second largest offshore wind developer in the US.
National Grid and its legacy companies have operated in New York State for over 125 years and now serve the needs of more than 20 million people throughout the Northeast. National Grid brings local expertise and experience developing large-scale infrastructure projects across the US and UK.
For more information, please visit www.communityoffshorewind.com.
About Community Offshore Wind
RWE and National Grid, will bring clean energy to the Northeastern US in a joint venture called Community Offshore Wind. They will develop offshore wind on the largest parcel in the New York Bight with the potential to host 3 gigawatts (GW) of capacity, which is enough to power more than one million US homes and businesses. The project is expected to be in operation by the end of 2030. Community Offshore Wind is dedicated to investing in communities by bringing clean energy jobs to the region and growing the local economy. They will deliver sustainable energy safely, reliably, and efficiently to the communities they serve.
About RWE
RWE is leading the way to a green energy world. With an extensive investment and growth strategy, the company will expand its powerful, green generation capacity to 50 gigawatts internationally by 2030. RWE is investing more than €50 billion gross for this purpose in this decade. The portfolio is based on offshore and onshore wind, solar, hydrogen, batteries, biomass and gas. RWE Supply & Trading provides tailored energy solutions for large customers. RWE has locations in the attractive markets of Europe, North America and the Asia-Pacific region. The company is responsibly phasing out nuclear energy and coal. Government-mandated phaseout roadmaps have been defined for both of these energy sources. RWE employs around 19,000 people worldwide and has a clear target: to get to net zero by 2040. On its way there, the company has set itself ambitious targets for all activities that cause greenhouse gas emissions. The Science Based Targets initiative has confirmed that these emission reduction targets are in line with the Paris Agreement. Very much in the spirit of the company's purpose: Our energy for a sustainable life.
About National Grid Ventures
National Grid is an electricity, natural gas, and clean energy delivery company serving more than 20 million people throughout our networks in New York and Massachusetts. National Grid is focused on building a path to a more affordable, reliable clean energy future through our fossil-free vision.
National Grid Ventures (NGV) is the non-regulated division of National Grid plc, one of the largest investor-owned energy companies in the world. NGV operates outside of National Grid's core regulated businesses in the US and UK where it develops, operates and invests in energy projects, technologies and partnerships to accelerate the development of a clean energy future. NGV's diverse portfolio of low carbon and renewable energy businesses across the UK, Europe and US includes subsea electricity interconnectors, wind and solar power, and battery storage. For more information, visit https://www.nationalgrid.com/national-grid-ventures.
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