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Wind Farm: After Approval, the Dollars

Thu, 01/27/2022 - 11:32

The federal Bureau of Ocean Energy Management approved the South Fork Wind farm’s Construction and Operations Plan last week, the final federal approval needed for the project’s construction to commence.

The wind farm’s developers, Orsted U.S. Offshore Wind and Eversource Energy, said in a notice of intent issued earlier this month that onshore construction of the 12-turbine, 132-megawatt installation, to be situated in federal waters approximately 35 miles east of Montauk Point, could start as soon as tomorrow. That will not happen, a spokeswoman said on Tuesday.

The Construction and Operations Plan approval outlines the project’s one nautical mile turbine spacing, the requirements on the construction methodology for all work occurring in federal ocean waters, and mitigation measures to protect marine habitats and species.

BOEM’s final approval of the plan follows the agency’s November 2021 issuance of its Record of Decision, which concluded the BOEM-led environmental review of the project.

“This milestone underscores the tremendous opportunity we have to create a new industry from the ground up to drive our green energy economy, deliver clean power to millions of homes, and create good jobs across the state,” Gov. Kathy Hochul said in a statement last week. “As we tackle climate change head-on and transition to a clean economy, these are the projects that will power our future.”

A host community agreement negotiated with the developers includes two initial “milestone” payments of $500,000 each. The first nonrefundable payment was made on June 10, after the agreement took effect; the second is to be made within 90 days of the start of the project’s construction.

Beginning within six months of the wind farm’s commercial operation, the developers are to make 25 annual payments, starting at $870,000 with subsequent payments increasing by 2 percent annually. Combined with a $100,000 geotechnical access/license fee already paid to the town, the host community agreement and easement’s price tag is approximately $28.9 million.

Members of the town board and the trustees have informally discussed how to allocate the money. Francis Bock, clerk of the trustees, said this week that “we just have ideas floating around” to date, though one long-term hope is to open the east channel in Napeague Harbor to improve water quality. Mr. Bock estimated that project’s cost as $5 million at minimum, and said that the trustees would seek partnerships, grants, and donations to fund the project along with money from the host community agreement.

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