A public-private partnership will invest millions of dollars to redevelop the New London state pier, setting the stage for construction of offshore wind turbines.
The Connecticut Port Authority, Gateway Terminal, Eversource, and the Danish power company Ørsted will invest $157 million to transform the pier into a heavy-lift cargo and deep water port to allow for development of Revolution Wind, a 704-megawatt project.
Ørsted and Eversource are contributing $77.5 million toward the pier work. This includes $22.5 million for Revolution Wind.
The state and the port authority will cover the remainder—about $79 million—through bonding and $25.5 million of funds the port authority previously committed to the project.
After bids are solicited later this year, construction is expected to begin in early 2021, with work to be completed by August 2022.
But before construction begins, the partnership must secure all required federal and state approvals as well as the necessary bonding.
The pier redevelopment project is expected to create around 460 construction jobs.
Revolution Wind, once online, is expected to create 400 new offshore wind-related jobs.
The port authority will oversee the project while working with Ørsted and Eversource through the permitting and construction phases.
"This agreement paves the way for a surge in activity in New London and eastern Connecticut that will cement the state's position as a leader in the industry," Gov. Ned Lamont said this week.
"This new partnership achieves the goal of job growth in a critical part of our state, while making investments in clean energy, showing the world, yet again, that Connecticut will be a leader in addressing climate change."
After the pier is redeveloped, a joint venture company formed by Ørsted and Eversource will sign a 10-year pact to use the pier to pre-assemble their wind turbines and staging to power Revolution Wind and two other projects—Sunrise Wind and South Fork Wind.
Sunrise is a 880-megawatt project and South Fork a 130-megawatt project, both serving New York.
"In addition to the hundreds of well-paying, local jobs that will be created to construct our wind projects out of the state pier, we have also committed millions in local community investments as part of our Revolution Wind project and we will be partnering with local companies to develop a local offshore wind supply chain," said Joe Nolan, executive vice president of strategy, customer and corporate relations for Eversource.
"We look forward to continuing our collaboration with the state, the Connecticut Port Authority, Gateway Terminal, and other local partners to bring the offshore wind industry to Connecticut's shores, advance our clean energy economy, and achieve our climate goals."
Ørsted CEO Thomas Brostrøm said it was imperative to take on climate change and that offshore wind reduces the reliance on fossil fuels.
"We are confident that the revitalization of State Pier will put New London on the map for the offshore wind industry, attracting manufacturers and suppliers to choose the New London region, bringing along economic benefits and growth," he said.