Business & Tech
Dominion Signs Terminal Lease For Offshore Wind Energy Project
Dominion Energy will use 72 acres of the Portsmouth Marine Terminal as a staging and pre-assembly area for an offshore wind energy project.
VIRGINIA — The Port of Virginia has reached an agreement to lease a portion of the Portsmouth Marine Terminal to Dominion Energy as part of the energy company’s development of an offshore wind energy farm.
Under the agreement, Dominion Energy will use 72 acres of the deepwater Portsmouth Marine Terminal as a staging and pre-assembly area for the foundations and turbines that will be installed 27 miles off the coast of Virginia Beach. The Virginia wind project, as currently proposed, would produce more than 2,600 megawatts.
“This announcement is yet another milestone toward making Virginia the national leader in offshore wind power,” Virginia Gov. Ralph Northam said in a statement Wednesday.
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The Portsmouth Marine Terminal has an experienced maritime workforce and sufficient space for large wind infrastructure components.
“It is perfectly situated to serve the Virginia offshore wind project and grow the domestic supply chain needed to complete other offshore wind projects in the United States,” Robert Blue, chairman, president, and CEO of Dominion Energy, said in a statement.
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Northam and Blue spoke Wednesday at the Business Network for Offshore Wind’s International Partnering Forum, a three-day conference at the Greater Richmond Convention Center.
Dominion’s lease term at the terminal is 10 years, valued at nearly $4.4 million annually, and includes an option for two five-year renewals. The lease agreement includes significant upgrades to ensure the terminal can handle the weight of the large components that will be deployed to build the offshore wind turbines.
“For the last several years it has been known that The Port of Virginia, and specifically the Portsmouth Marine Terminal, is positioned to be the leading Mid-Atlantic logistics hub for the offshore wind industry,” Port of Virginia CEO Stephen Edwards said.
Dominion’s two-turbine pilot project is operating off of the coast of Virginia Beach. In July, the Bureau of Ocean Energy Management issued a “notice of intent” for the full commercial project. The notice of intent triggers a federal review of the project and preparation of an environmental impact statement, which will take about two years.
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