Orsted Wind Farm Near Martha’s Vineyard Wins Biden’s Approval

(Bloomberg) -- The Biden administration approved Orsted A/S’s plans to build a nearly 1-gigawatt offshore wind farm near a popular Massachusetts vacation destination, setting the stage for the massive project to begin supplying power to New York in 2026.

The Sunrise Wind project — a joint venture between Orsted and Eversource Energy — is set to encompass scores of turbines installed about 16 nautical miles south of Martha’s Vineyard, Massachusetts, and approximately 27 nautical miles east of Montauk, New York.

Interior Secretary Deb Haaland said the approval — the seventh offshore wind project to be authorized under President Joe Biden — “marks another substantial step towards fulfilling our clean energy goals” and “developing the American offshore wind industry.”

The approval is the latest positive development for an industry that had been bogged down by inflation, higher borrowing costs and supply-chain woes. In February, Sunrise Wind secured a new contract to supply power to New York that reflected its higher development costs. And last week, the US Treasury Department issued guidance expanding the opportunity for offshore wind projects to claim bonus tax credits under the Inflation Reduction Act, delivering on a key request from some developers. 

The Sunrise project has a nameplate generating capacity of 924 megawatts, roughly equal to a conventional nuclear reactor. The operation would help New York in its push to deploy 9 gigawatts of offshore wind by 2035 and edge the US closer to Biden’s goal of 30 gigawatts by the end of the decade.

“With the federal record of decision in hand and our final investment decision having been made, we can continue to create hundreds of local union jobs and stand up a vibrant supply chain,” said David Hardy, head of Orsted’s Americas division.

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