(OW) The New Jersey Economic Development Authority (NJEDA) has approved agreements with Ørsted for the development and sublease of up to 34 acres at the New Jersey Wind Port (NJWP), which Ørsted will use as a staging and support area for its 1.1 GW Ocean Wind 1 offshore wind project.
With the agreement, Ørsted will be the port’s inaugural tenant and expects to create up to 200 jobs over its lease term.
The offshore wind project itself is expected to create over 15,000 jobs over its 25-year operational life.
“This will be a catalyst for the men and women of the South Jersey building trades, which in turn will help grow the local economy with the union wages that are being paid”, said Dan Cosner, Business Manager and Financial Secretary of Electrical Workers Local Union 351.
The Danish company will sublease up to 34 acres of property at the port for up to two years, with a total rent payment estimated at over USD 25 million.
The New Jersey Wind Port, located on the Delaware River in Lower Alloways Creek, Salem County, New Jersey, is expected to be a transformative, hub-style port serving offshore wind projects in New Jersey and up and down the US East Coast.
The construction of the project began in 2021. The 220-acre port can accommodate multiple Tier 1 component manufacturers such as blades, nacelles, towers, and cables.
The agreement with Ørsted includes a mechanism for shared berth use, which should allow the port to attract manufacturing tenants who need access to purpose-built wharves to ship out completed components.
The NJEDA first issued a Notice to sublease in November 2020 and Ørsted submitted a non-binding offer in December of that year. The two parties executed a Letter of Intent (LOI) in April 2022 and have since been negotiating final terms.
The property being subleased to Orsted is owned by PSEG Nuclear and is being leased by NJEDA from PSEG Nuclear on a 78-year basis.
Earlier this month, New Jersey Governor Phil Murphy signed legislation allowing Ørsted to access federal tax credits that will enable them to complete Ocean Wind 1.
The onshore construction of the project will start later this year with work on the onshore substation and land cable route.
The 1.1 GW offshore wind farm, located approximately 24 kilometres off the coast of southern New Jersey, is scheduled to be commissioned in 2025.
“The Board’s approval serves as another major step forward in achieving Governor Murphy’s 11 GW offshore wind target, and cements New Jersey’s reputation as a national leader in offshore wind”, said Tim Sullivan, NJEDA Chief Executive Officer.
“Ørsted’s decision to marshal its Ocean Wind 1 project from the New Jersey Wind Port will create 200 jobs that would otherwise have gone to other states, and is the first of many projects that will use the Port in the years and decades ahead that will create jobs for our children, further our clean energy goals, and ensure a more resilient environment and economy.”