THE VIRGINIAN-PILOT |
DEC 28, 2021 AT 10:00 AM
Hampton Roads leaders are convinced the region could be the home for the offshore wind industry on the East Coast.
Now, they’re asking the state for $30 million to help make that possible.
The Hampton Roads Planning District Commission is asking the General Assembly to set aside funding in the upcoming budget to establish an offshore wind supply chain development fund. Proponents say the fund would help existing companies transition to doing business in wind energy and offset costs of new workers and equipment.
“It’s an industry that doesn’t exist in the United States today,” Hampton Roads Alliance President and CEO Doug Smith said. “We’re trying to create it from scratch.”
If you’re an existing Hampton Roads company in a wind farm-adjacent industry, like maritime or logistics, those headwinds can create major financial barriers, Smith said. Company leaders say they aren’t comfortable investing on a venture they aren’t sure will make money. The process can also take several years to complete.
That’s where the grant fund comes in. Funds could be used to offset a variety of costs, like worker training, new product development, equipment upgrades and implementing new operational processes to support the offshore wind industry.
The other part of the funding request is an ambitious plan by the Hampton Roads Workforce Council to train at least 1,000 new offshore wind workers by 2025. The plan would hire several community members to bring the training program to traditionally underserved Hampton Roads populations.
A recent study conducted on behalf of the Hampton Roads Alliance suggests that investing in local companies is only one piece of the offshore puzzle. The study, conducted by energy consulting firm Xodus Group, also recommends attracting a major European offshore manufacturer to the area and working with the Navy for staffing, technology and other needs.
The plan has unanimous support from Hampton Roads city leaders, said Bob Crum, executive director of the planning district commission. The commission includes representatives from 17 cities and counties in South Hampton Roads, the Virginia Peninsula and other locations.
“We sort of sit right in the middle of potential wind farm locations,” Crum said.
Crum and Smith think incoming Virginia Gov. Glenn Youngkin will be receptive to offshore wind. Crum said the industry was an opportunity for the region to seize command of job creation.
The offshore wind industry has the potential to support around 5,200 new jobs in Virginia annually for every gigawatt of wind energy the region installs and services, according to a report released in 2020. At that scale, the report estimates the industry could pump $740 million into the Virginia economy if Hampton Roads attracts supply chain companies and develops industry expertise.
Dominion Energy plans to build an 180-turbine, 2.6-gigawatt wind farm off the coast of Virginia Beach by 2026. Avangrid Renewables also wants to build a 2,500-megawatt farm 27 miles from Corolla, North Carolina.
Trevor Metcalfe, 757-222-5345, [email protected]