Still an Open Question: Will Virginia Become Supply Chain Hub for East-Coast Wind Farms?

The Luxembourg-flagged Vole Au Vent is seen here installing one of Dominion Energy’s two experimental wind turbines 27 miles off the Virginia coast last year. Photo credit: Dominion. An American-made vessel will install the next 180 or so turbines.

by James A. Bacon

The primary justification for spending $7.8 billion to build a wind farm off the Virginia coast at a significantly higher cost per kilowatt than other energy sources is to advance Virginia’s goal of achieving a zero-carbon electric grid by 2050. But an important secondary consideration is the hope that the project will jump-start the creation of a new industry in Hampton Roads serving the emerging East Coast offshore wind industry.

Virginia has deep channels, no bridge obstructions, an active  maritime community, and perhaps the nation’s largest shipbuilding industry. Dominion Energy’s Coastal Virginia Offshore Wind Project, it is hoped, will catalyze development of a multibillion-dollar offshore wind-energy industry in Virginia.

That case is a little harder to make these days. When Dominion decided to invest $500 million in building an offshore wind-turbine installation vessel, none of Virginia’s shipbuilding companies was interested. All were booked up with Navy contracts. The vessel, named after the mythical Greek sea monster Charybdis, is being constructed in Brownsville, Texas.

Kevin Carroll, Dominion’s manager of offshore Operations & Maintenance, still professes optimism that the offshore wind farm will give a big boost to the Virginia economy. “Our hope is to get more supply chain activities in Hampton Roads,” he told Bacon’s Rebellion Wednesday during a media tour of the company’s two experimental turbines. But the half billion-dollar chunk of business for constructing the Charybdis won’t be part of the mix.

The Charybdis will be home-ported in Hampton Roads, but it will spend most of its time on location. The vessel, which is being financed by the Dominion Energy parent company, not Virginia ratepayers, is expected to launch in late 2023. It will deploy first in New London, Conn., in support of the Revolution Wind and Sunrise Wind projects co-developed by Eversource and Ørsted.

Meanwhile, every state pushing a wind farm off its coast is hoping to grab a piece of the maritime supply chain.

Indeed, Connecticut will get the first crack at building that supply chain. The Charybdis will work from Connecticut’s State Pier in New London. A Dominion press release quoted Connecticut Governor Ned Lamont as saying, “All of this activity assists in advancing our state’s clean energy economy and helps position New London as a hub for the industry, delivering jobs and economic development to the city and Connecticut overall.”

Meanwhile, New York hopes to parlay the fact that it has five offshore wind projects in the works, more than any other state, into economic development. Said New York Governor Mario Cuomo: “New York remains steadfast in its commitment to further grow the burgeoning offshore wind industry in the United States and we will continue to work with our regional partners to unlock the enormous potential for green energy to create jobs and build a cleaner future for all.”

Still, Dominion’s Carroll says Hampton Roads has advantages that no Northeastern port can match. First, Virginia’s ports have the deepest channels. Second, its bridge-tunnels allow vessels to access the open waters of the Atlantic Ocean unobstructed by bridges. Because installation vessels transport the tower components of the wind turbines in a vertical posture, they need considerable clearance.

Between 2024 and 2026, the Charybdis will be working off the Virginia coast during the construction phase of Dominion’s 180-turbine wind farm. How many of the related 900 construction jobs will go to vendors, subcontractors and suppliers based in Hampton Roads as opposed to New London or elsewhere remains to be seen.


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24 responses to “Still an Open Question: Will Virginia Become Supply Chain Hub for East-Coast Wind Farms?”

  1. WayneS Avatar

    Charybdis.

    Good name.

    1. Nancy Naive Avatar
      Nancy Naive

      It’s a huge sucking sound.

  2. LarrytheG Avatar
    LarrytheG

    building one at a time…. with one boat…. sounds slow….

  3. Thomas Hadwin Avatar
    Thomas Hadwin

    All of this would still be possible, including Dominion Energy investing in a vessel, without allowing the utility to greatly increase the cost of energy by gaining a guaranteed profit for just building the facility. No other states on the East Coast are developing offshore wind in this way.

    This is an important issue. The VCEA proposes two phases of development for two separate 2,640 MW wind farms in the federal lease zone controlled by Dominion.

    The VCEA considers only 3,000 MW of offshore wind to be “in the public interest” which greatly hinders the SCC’s ability to determine if the costs are prudent and properly protect ratepayers’ interests.

    It is doubtful that Dominion would allow some other developer to build within the lease zone that it controls. But it might be possible for the SCC to require Dominion to build and operate the second phase as a merchant generator, as other states are doing. This would greatly reduce the cost of energy from the facility but still provide a “fair” profit as others are content to receive – just not the exorbitant profit that Dominion will receive from Phase I.

    Virginia could develop the same vibrant support infrastructure in either case. It would just cost its citizens far less with a fairer deal.

  4. Eric the half a troll Avatar
    Eric the half a troll

    As I understand, Ørsted is developing a maintenance and/or lay down facility at Sparrow’s Point near Baltimore.

    1. Nancy Naive Avatar
      Nancy Naive

      If you build it… uh, er, ah!, somebody will bitch about it. Is that it?

  5. Thomas Hadwin Avatar
    Thomas Hadwin

    From the VA Mercury:

    “Offshore wind energy is headed to the East Coast on the back of a monster famed for creating giant whirlpools to overturn ships.”

    “Most well-known for the havoc she wreaked on Odysseus’s fleet in Homer’s Odyssey, Charybdis was originally a nymph who was transformed into a monster either for flooding too much land or stealing sheep. Another monster, Scylla, also attacked ships
    across the Strait of Messina between Sicily and Calabria on the Italian mainland.”

    1. Stephen Haner Avatar
      Stephen Haner

      Yeah, love the name. Why not Titanic? I think Nancy got it right — this will produce a giant sucking sound….

      1. Nancy Naive Avatar
        Nancy Naive

        Charybdis… the original Whirlpool man.

        Oh, wait, no. I was thinking of Maytag.

  6. energyNOW_Fan Avatar
    energyNOW_Fan

    South Jersey is already upset.

    They wanted to build the turbines in a new Paulsboro plant across from Philly on the Delaware, but the foreign wind companies are not progressing with the plant construction. Orsted is not progressing the wind project very fast either, for some reason. I must assume the orig advertised 2021 construction date was a hope not definite.

    But New Jersey is going for bids, not their utility. I think Dominion’s (and Virginia’s elected officials) approach is Field of Dreams: “if we build it, they will come.” Remember that was a good movie: but it is complete fiction.

    1. energyNOW_Fan Avatar
      energyNOW_Fan

      The dredging of the Delaware River around Year 2000 was my last fight as a concerned citizen in NJ. I can assure you no soil was dredged while I lived there, but we moved, and then they dredged it deeper (Army Corps). There was no specific economic justification at the time, except hope.

      1. LarrytheG Avatar
        LarrytheG

        I would have thought with a tag line like energyNOW , you would have liked dredging , more ships, propserity, etc.. no?

        1. energyNOW_Fan Avatar
          energyNOW_Fan

          …well the dredging of the Delaware River was a boondoggle that profited local elected officials who bought up South Jersey swampland along the Delaware River and sold it off for dredge spoil$ dumping land. After I moved away from NJ, I believe former Obama EPA chief Lisa Jackson became the NJ DEP Head and she tried to stop the dredging too. Maybe with both of us on the case together we might have stopped it. I regret not living in NJ when Lisa Jackson was DEP Head.

          The elected officials had said the a deeper Delaware River was needed to allow oil supertankers to come up the Delaware to the refineries. After a bit too much of this talk, the oil companies politely advised the pubic that actually, there were no plans to bring supertankers up the river, and that discussion was more of an aspirational goal of the elected officials, and not anything that was actually requested or needed.

          1. LarrytheG Avatar
            LarrytheG

            Oh, I was thinking PanaMax, no?

  7. energyNOW_Fan Avatar
    energyNOW_Fan

    Sounds like New Jersey might be getting started now (re: Ocean Wind project):
    https://njbmagazine.com/njb-news-now/ocean-wind-eew-begin-construction-of-manufacturing-facility-at-port-of-paulsboro/

    Breaking ground on the plant-
    “Positioning New Jersey as a national leader in the offshore wind industry and developing our offshore wind capabilities have been key priorities of my Administration since day one,” said Governor Murphy. “As the largest industrial offshore wind investment in the United States to date, the Paulsboro Marine Terminal will be a significant driving force for the state’s economy and create hundreds of good-paying, union jobs to South Jersey. Offshore wind is a once-in-a-generation opportunity, and today’s groundbreaking signals a monumental step forward in propelling New Jersey’s clean energy economy for generations to come.”

    Sometimes in South Jersey, ground is broken
    on a project in hopes of making it happen, so we shall see…meanwhile NJ is working on legislation to prevent localities and counties from blocking the power lines under the beaches and through the beach towns (since NJ is a home rule state, they need to go more Dillon-like on this matter).

  8. energyNOW_Fan Avatar
    energyNOW_Fan

    Sounds like New Jersey might be getting started now (re: Ocean Wind project):
    https://njbmagazine.com/njb-news-now/ocean-wind-eew-begin-construction-of-manufacturing-facility-at-port-of-paulsboro/

    Breaking ground on the plant-
    “Positioning New Jersey as a national leader in the offshore wind industry and developing our offshore wind capabilities have been key priorities of my Administration since day one,” said Governor Murphy. “As the largest industrial offshore wind investment in the United States to date, the Paulsboro Marine Terminal will be a significant driving force for the state’s economy and create hundreds of good-paying, union jobs to South Jersey. Offshore wind is a once-in-a-generation opportunity, and today’s groundbreaking signals a monumental step forward in propelling New Jersey’s clean energy economy for generations to come.”

    Sometimes in South Jersey, ground is broken
    on a project in hopes of making it happen, so we shall see…meanwhile NJ is working on legislation to prevent localities and counties from blocking the power lines under the beaches and through the beach towns (since NJ is a home rule state, they need to go more Dillon-esque on this matter).

  9. DJRippert Avatar
    DJRippert

    How many bogus economic development “miracles” do our politicians get to promise before somebody calls their bluff? Whatever happened to the “miracle” of the Panamax ships for Hampton Roads? As I recall, only Virginia had a deep enough channel on the East Coast for those mega-ships to navigate. Have the presumed benefits accrued? What happened to the Rolls Royce airplane engine plant “miracle”? I hear that’s shut down with the bizarre explanation that COVID killed the plant. That plant made engines for private jets. My understanding is that COVID hardly killed the market for private aviation. How have the tobacco indemnification funds done to catalyze economic opportunity in rural Virginia?

    I would bring up GreenTech but (by the grace of God) that debacle soaked the people of Mississippi instead of Virginia.

    You know what would create an economic miracle? A better education system where the schools are focused on learning instead of Critical Race Theory.

    1. Brian Leeper Avatar
      Brian Leeper

      I would add that a better transportation system would also help to create an economic miracle. I am told by people in the trucking industry that Virginia is among the worst states to deal with in terms of getting product from point “a” to point “b”.

      And if we go way back, one of Ford’s stated reasons for shutting down the Norfolk plant was that it was taking too long for deliveries to get from their suppliers to Norfolk, which I can only assume involved the linear parking lot known as I95.

      However, credit should be given where credit is due, and I will state that Virginia’s transportation policies worked well for an 1800s agrarian economy dependent upon slave labor.

      1. LarrytheG Avatar
        LarrytheG

        here’s part of the problem:

        Every single state has a gas tax and Virginia ranks almost 40th and people simply don’t want to pay more tax for more infrastructure:
        https://upload.wikimedia.org/wikipedia/commons/9/9d/Fuel_taxes_in_the_united_states.png

        1. Brian Leeper Avatar
          Brian Leeper

          As I recall the people in NoVA voted to pay more for gas taxes a while back.

          1. LarrytheG Avatar
            LarrytheG

            Maybe, but it was more for NoVa than point to point freight movement.

            VDOT is actually moving forward on a plan for I-81 and I-95 in Virginia south of NoVa is not near as terrible as it is in NoVa.

            I supporting tolling for congestion management – dynamic supply and demand pricing. There is no more
            available right-of-way in NoVa for the most part – the choice is to manage what they have and the problem is more SOV cars than trucks IMHO.

            Just too many people wanting to drive solo and at rush hour.

            But we do need a truck route around NoVa.

            I-95 is an east coast highway. In most places it functions well but in NoVa, it’s a no go. That pushes many longer haul trucks over to I-81 or east to 301.

          2. energyNOW_Fan Avatar
            energyNOW_Fan

            Old data we are 29.5 cents now.

            Virginia is increasing gaso tax fast, and you are neglecting to add in the sales tax component from NoVA as well as the new registration fee increase to
            cars over 25 MPG to punish them for escaping the gaso tax at the pump, Add that all in please, and re-rank. I think we are well into the top half of highest states now and moving up fast.

      2. LarrytheG Avatar
        LarrytheG

        here’s part of the problem:

        Every single state has a gas tax and Virginia ranks almost 40th and people simply don’t want to pay more tax for more infrastructure:
        https://upload.wikimedia.org/wikipedia/commons/9/9d/Fuel_taxes_in_the_united_states.png

  10. Brian Leeper Avatar
    Brian Leeper

    Seems about as likely to happen as that Eli Lilly plant in Prince William County.

    Anyone remember that? It’s an empty parcel to this day. I personally think they should build a strip mall there complete with a check cashing place, a title/payday loan place, a tattoo parlor, a porno video store, a “buy here, pay here” used car lot, a 4×4 customz shop, and other types of businesses that appeal to the local population.

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