The U.S. Offshore Wind Market, especially in New York and New Jersey, is growing Rapidly. Whether this turns into an Economic Boom hinges on East Coast Ports getting ready for it. So far, they are Not.
If the Ports Upgrade their Infrastructure and Coordinate their Efforts, Offshore Wind could Create Tens of Thousands of Jobs along the Coast and Help the States reach their Carbon-Emission Goals. If they don't, it would be a Tremendous Missed Opportunity.
Keeping Offshore Wind Turbines Spinning requires Vessels and other Equipment, which in turn require Port Infrastructure. Unfortunately, U.S. Ports are Outdated and Inadequate for Offshore Wind.
On the East Coast, we have a Classic Chicken-and-Egg Problem:
Port Managers are Reluctant to make Large Investments in Terminal Improvements, Dredging, and Infrastructure until Offshore-Wind Developers commit to using their Facilities for a Decade or more. But Developers are Not willing to make these Commitments until they have Assurances that the Ports will be Ready when needed.
To Solve this, U.S. Offshore Ports could Form a Consortium similar to the Ports Platform developed by WindEurope, which allows Ports to Share Best Practices and engage with Industry, Developers, and Policy Makers with One Voice. In other words, not Every Port has to have every Type of Offshore Wind Infrastructure Support. A Shared Planning and Communication Platform would Encourage Port Infrastructure to be Distributed among States, which will Support Different Parts of the Industry.
We will have a chance Next Week to Learn from the Mistakes and Successes of European Union Countries who Designed and Built the First Offshore Wind Farms:
Liz Burdock is CEO and President of the Business Network for Offshore Wind, a Nonprofit Organization Dedicated to Building the U.S. Offshore Wind Supply Chain.
Representatives of these Nations will Speak at the Sold Out Business Network for Offshore Wind Forum from April 8th-10th in New York City.
But the General Idea of a Regional Approach is to Create a Series of Specialized Ports along the East Coast. The Role of each Port would be clearly Defined for the most Appropriate Stage of an Offshore-Wind Project.
For their part, the Offshore-Wind Developers, who act as General Contractors on these Huge Projects, could create Mini-Clusters of Suppliers to Perform set Functions during the Phases of the Offshore Wind Lifecycle. A Developer with Multiple Projects at different Stages of Development could Direct the Mini-Clusters to Operate from the Different Port Locations along the Coast.
As this Regional Working Model comes into Focus, it will attract more Investment from the States, one of which, Massachusetts, has already made a $100 Million-Plus Port Investment. New York recently Committed $200 Million toward Ports Development, New Jersey has invested $173 Million in Bonds in the Paulsboro Marine Terminal, and Connecticut, Rhode Island, Virginia, and Maryland are Working on Port Projects. Further, the Federal Government is willing to provide Loan Guarantees and there is now a growing Interest from Private Investors.
The Port Authority of New York and New Jersey should Lead the way. Possible Offshore Wind Ports include the Arthur Kill Terminal on Staten Island, the South Brooklyn Marine Terminal, and several Sites on the Raritan River in New Jersey. Many more will follow as the Industry Develops.
Now is the time for a Solution to be found. The Industry has to figure out the Details of Coordinating Port Infrastructure and Logistics. Industry and the States need to start Communicating in order to stay Ahead of the Project Pipeline and ensure that the U.S. has a Well-Coordinated and Efficient Offshore Wind Marketplace.
The Ports are the Key to Unlocking the Nation’s Offshore Wind Potential. Together we need to make a Bold Move and actually Turn the Key.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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