CPA: New London State Pier Agreement will Develop an Anchor for Regional Offshore Wind Development

State Pier to be Developed by 2022 to Support Wind Power Component Handling, Assembly, and Installation Until 2032. After that, SP will Serve as Regional Heavy-Lift Specialty Facility.

02 May 2019, New London CT – The Connecticut Port Authority (CPA) and terminal operator Gateway are partnering with Bay State Wind (BSW; a joint venture between Ørsted and Eversource), to develop and operate the New London State Pier. Development will emphasize heavy-lift cargo-handling capabilities to support offshore wind farm developments in New England waters.

The agreement outlines a two-phased effort. First, a three-year development project will upgrade the facility infrastructure to meet the heavy-lift requirements of BSW’s offshore wind components. Construction is tentatively scheduled to begin in January 2020 following bid solicitation and permitting, and is expected to be completed in March 2022.

Development funds earmarked

Ninety-three million dollars ($93M) has been committed to the development phase:

  • BSW is committing to provide $35 million in new capital, including $2.5 million to the CPA to offset operational costs during the three-year development project.
  • The State of Connecticut will invest $35.5 million, comprising $25.5 million from the CPA, and $10 million in new funding from the Department of Economic and Community Development through the Manufacturing Assistance Act.
  • Twenty-two and one-half million dollars ($22.5M) was previously committed for State Pier infrastructure improvements, and Ørsted/Eversource will honor that commitment.

The CPA is responsible for oversight and execution of the development project.

Phase II: ten-year lease to support wind farm development

Following the successful completion of the development project, BSW will enter into a ten-year lease agreement granting their joint venture the use of State Pier for wind turbine generator assembly and staging. Gateway and its financial partner Enstructure will serve as the terminal operator and will pay to the CPA fees as outlined in the original operator agreement:

  • Annual fixed fee payment of $3 million
  • Variable fee of 7 percent of annual revenue (the minimum annual guarantee is not in effect during the terms of this agreement)
  • Fifty percent (50%) of dockage and wharfage fees.

{CPA press release, 01.May.2019}

New London, CT

State Pier in its current configuration { ANRP 18#04}.

 

Artistic rendering of one possible development configuration. Printed in the Day with the caption “The Connecticut Port Authority says this rendering, showing a buildout of State Pier in New London, was commissioned by an artist and is not part of a larger engineering or design study.” {David Collins, The Day 02.Apr.2019}.