The Connecticut Port Authority and terminal operator of the State Pier in New London announced Thursday a $93 million public-private partnership with a wind energy producer to upgrade the pier to capitalize on growing offshore wind energy.
Bay State Wind, a joint venture of Ørsted, a wind energy company based in Denmark, and Eversource, which has committed $225 million in a partnership with Orsted, struck the deal with the Port Authority and Gateway, the operator of the terminal at the State Pier.
The intent is to significantly increase assembling and handling of turbines headed to the Atlantic Ocean off Massachusetts and eastern Long Island.
Financing will pay to upgrade the State Pier and its heavy-lift capacity, allowing the State Pier to meet the requirements of the offshore wind industry. The intent is to promote long-term growth at the port by increasing its ability to accommodate heavy-lift cargo.
“Connecticut’s maritime economy has significant potential to drive economic growth and create jobs across the state and redeveloping State Pier is a central component to that growth,” Gov. Ned Lamont said.
A three-year development project will upgrade the Pier to meet the heavy-lift requirements of Ørsted and Eversource’s offshore wind components. Ørsted and Eversource will have a 10-year lease agreement granting their joint venture use of State Pier to assemble wind turbine generators and other work.
The deal also promotes state plans to expand carbon-free energy.
Scott Bates, chairman of the Connecticut Port Authority, said manufacturers in southeast Connecticut will build components, boosting the region’s economy.
The Port Authority on Thursday authorized $700,000 to pay for planning and design work, he said.
“Now we begin in earnest the planning and design,” Bates said. “We have an aggressive time line.”
“With this public-private partnership comes the significant opportunity for job creation, local investment, and economic benefits for southeastern Connecticut and the wider region,” said Thomas Brostrøm, Ørsted president of North America and chief executive officer of Ørsted U.S. Offshore Wind.
Rep. Joe Courtney, D-2nd District, said the deal is a good fit for southeastern Connecticut, which has long been a center of New England’s maritime economy.
Construction is tentatively scheduled to begin in January 2020 following bid solicitation and permitting and be completed in March 2022.
The Ørsted/Eversource partnership will commit $35 million for State Pier improvements.
The state also will commit $35.5 million for State Pier improvements, including $25.5 million from the Connecticut Port Authority, which was previously announced, and $10 million in new funding from the Department of Economic and Community Development.
The deal includes $22.5 million previously committed for State Pier improvements by Ørsted/Eversource.
The Connecticut Port Authority will receive annual fixed fee payments of $3 million and be eligible for a one-time completion bonus for on-time completion.
