Virginia Governor Ralph Northam announced an agreement for Ørsted to lease a portion of the Portsmouth Marine Terminal for offshore wind staging materials and equipment. If fully executed, the lease will run through at least 2026, during which time, Ørsted plans to install nearly 3,000 megawatts of wind energy projects in the US.
The agreement between the Port of Virginia and Ørsted is for an initial lease of 1.7 acres at the Portsmouth Marine Terminal through 2026, with options to expand to an additional 40 acres.
If fully executed, the agreement could be worth approximately $13 million in lease payments and result in site upgrades worth more than $20 million for cranes and improvements to a section of the terminal’s berth to ensure heavy load capacity.
Those investments would prepare the site for activities such as pre-assembly, staging, and loading of wind turbines for other Ørsted projects.
“This is a big step towards making Virginia a leader in wind energy and offshore wind manufacturing. With the Port of Virginia at its helm, the Hampton Roads region has the trained workforce and the nautical know-how to become a vital hub for offshore wind development,” stated Governor Northam.
Portsmouth Marine Terminal is one of the Port of Virginia’s two multi-use terminals in the Norfolk Harbor. Covering 287 acres, the facility is located on deep water, with on-dock rail access, and offers open space for storage and staging.
“This is a strategic decision by leaders in the offshore wind industry to take advantage of Virginia’s world-class port. By welcoming Ørsted and allowing it to leverage the Portsmouth Marine Terminal, we could jumpstart an almost entirely new industry. The result is job creation, economic investment, diversification of the Virginia economy, and clean, renewable energy,” said John F. Reinhart, CEO and Executive Director, Virginia Port Authority.