What is the New Jersey Wind Port project?
Sunday, December 26, 2021
The New Jersey Wind Port is a transformative, hub-style marshalling port project that will serve offshore wind projects in New Jersey and up and down the U.S. East coast.
The Port will be the first purpose-built wind port on the East Coast, with no vertical restrictions and easy access to more than 50 percent of the available U.S. offshore wind lease areas.
Development Plan
30-ACRE MARSHALLING PORT
CONSTRUCTION STARTING 2021 | TARGET COMPLETION LATE 2023
Current development includes:
- Dredging from the Delaware River Channel
- Heavy-lift wharf with a dedicated delivery berth and an installation berth that can accommodate jack-up vessels
- A 30-acre marshalling area for component assembly and staging
- A dedicated overland heavy-haul transportation corridor
- Potential for additional laydown areas
Construction is slated to begin in 2021 with a target completion of late 2023, in time to support the first round of New Jersey and East Coast projects.
POTENTIAL LONGER TERM EXPANSION
The Wind Port is intended to support offshore wind marshalling activities but, longer term, has the potential for additional expansion to include co-located offshore wind manufacturing activities – with a potential developable footprint of over 200 acres. Any potential expansion beyond marshalling activities would be dependent on market demand as well as other factors.
Long-term potential for:
- 100+ acres of co-located space to attract investment from offshore wind blade, tower, and nacelle manufacturers
- Additional berths, with the potential to accommodate a second marshalling tenant
The New Jersey Wind Port is a major proposed green infrastructure development in Lower Alloways Creek, New Jersey. The project will support offshore wind projects up and down the East Coast, giving it the potential to bring up to 1,500 new high-quality jobs and $500 million of economic activity to South Jersey and the state annually. It will be the largest investment in Salem County in a generation.
The Port is set to be the first purpose-built offshore wind (OSW) port in the United States. Lower Alloways Creek is among the few locations on the East Coast that can meet the unique requirements for offshore wind component staging, assembly, and transportation (collectively known as “marshaling”). Current models of offshore wind turbines are almost 2/3rds the height of the Empire State building and weight thousands of tons.To accommodate the massive scale of these projects, ports must meet a variety of unique requirements, including no vertical restrictions like bridges or power lines, a heavy-lift wharf, ample development space to accommodate future-generation turbines that are larger and heavier, and close proximity to offshore wind farms in the Atlantic
Ocean.
What will be built at the New Jersey Wind Port and when will it be built?
The project will involve the dredging of a channel and construction of a wharf purpose-built to accommodate offshore wind installation vessels and barges. Construction on the first two parcels, including a wharf, component storage/assembly areas, and an initial manufacturing site, has started, creating hundreds of local union jobs. This phase of the project is expected to be done by
early 2024.
Longer term, the Port has the potential to expand into an offshore wind manufacturing hub - with a develop-able footprint of up to 200 acres. This recognizes that offshore manufacturers derive significant benefits from being close to marshalling activities, such as reduced transportation and storage costs which, in-turn, means lower installation costs and lower electricity prices for households and businesses. Decisions on the scope and timing of future phases will be made over the next 12 months.
Why is New Jersey doing this now?
Offshore wind is a rapidly growing industry and the East Coast is set to be the epicenter of the next wave of growth, with states committing to installing more than 35 gigawatts (GW) of offshore wind generation capacity by 2035 – enough to power more than 17 million homes. This is a once-in-a-generation opportunity that will bring an estimated $150 billion in capital investment to the East Coast, yet the region’s existing port facilities are insufficient to meet the demand. The New Jersey Wind Port will help make New Jersey the epicenter of the East Coast offshore wind industry, bringing thousands of jobs and millions of dollars to communities across the state.
In addition to the Port, New Jersey has other key characteristics needed for offshore wind success, including a highly skilled workforce and unparalleled location at the heart of the Mid-Atlantic. Adding the Port will help create a “hub” of manufacturing activity and marshaling that will have capacity to service New Jersey’s first offshore wind project – Ocean Wind – in 2024, the planned 7.5 GW of committed offshore wind projects in New Jersey, and projects in other states.
How will this project benefit the State, South Jersey, and Salem County?
The State envisions this investment as a transformative opportunity to create an offshore wind industry hub where new and existing New Jersey-based businesses can locate and take advantage this rapid growth opportunity. At full build out, the New Jersey Wind Port project could create up to 1,500 high-quality permanent jobs and increase economic activity in South Jersey by more than $500 million annually. Working families and businesses in the area will benefit from this long-term investment.
Most jobs at the Port would not require a college degree. Workers will need trade or skillcertifications, like welding or machining. New Jersey’s highly skilled workforce is already well-suited to fill these jobs and the Stateis mobilizing our robust workforce development infrastructure to prepare more workers for opportunities in the offshore wind industry.
How was the Lower Alloways Creek site chosen?
The Port will be located on the eastern shore of the Delaware River in Lower Alloways Creek, Salem County, approximately seven-and-a-half miles southwest of the City of Salem. The Port site is adjacent to PSEG’s Hope Creek Nuclear Generating Station.
The State chose the Lower Alloways Creek site after a 22-month long feasibility analysis led by the New Jersey Economic Development Authority (NJEDA). The site has no overhead restrictions, is far from residential areas, and is close to wind farm lease areas, which will allow it to meet the industry’s long-term needs, provide a strong economic return, and benefit the local community.
How much will the project cost?
The construction of Phase One of the project, including dredging, a marshalling site, and an initial manufacturing site, is estimated at approximately $400 million, (excluding the cost of manufacturing facilities). Funding for the first phase has already been fully allocated by the State Who is managing the project?
The NJEDA is leading the development of the project on behalf of the State and coordinating with key departments and agencies such as the Governor’s Office, the Department of Treasury, the Department of Transportation, and the Board of Public Utilities.
Globally, governments often lead offshore wind port projects to accommodate their high upfront costs and planning and permitting complexities.
NJEDA has hired AECOM Tishman to serve as the project’s overall construction manager. AECOM Tishman is now awarding ten different work packages to prime contractors and their subcontractors. AECOM Tishman has signed a project labor agreement (PLA) that reflects a commitment to hire local union workers and aligns with the State’s and NJEDA’s workforce equity goals. In addition, the project has goals of 15% of the construction value being contracted with minority-, women- and veteran-owned firms, 25% by small businesses and 3% by service disabled veteran-owned firms.
Will this project impact the local environment?
Lower Alloways Creek is a man-made island that includes previously disturbed areas that are developed with nuclear power units, associated infrastructure, and confined disposal facilities for dredge spoils. The site also consists of freshwater and coastal
wetlands and state open waters. It is adjacent to the Mad Horse Wildlife Management Area.
The project has already received most of its required federal and state environmental permits and is ready to responsibly start construction. The project will fully respect all rules and regulations governing work in environmentally sensitive areas. In addition,
NJEDA is working with many stakeholder to assess options for future environmental improvements, such as beneficial reuse of dredge material in the local area.