Offshore Wind in Virginia

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NorfolkGroup, International Terminals CoStar Richmond

Hampton Roads Harbor

Coastal Virginia Offshore Wind Pilot Project

Offshore Wind

ADP, Norfolk Virginia International Gateway, Portsmouth


With a location at the center of the East Coast, one of the highest concentrations of skilled maritime talent on the East Coast, world-class port infrastructure, and a competitive cost of doing business, Virginia is positioned to be a leader in the U.S. offshore wind supply chain. Recent projects related to this emerging industry have been announced in Virginia by companies such as Rose Holm, Atlantic Wind Transfer, Coastal Precast Systems, and Siemens Gamesa Renewable Energy.


Why Virginia? 1 Commitment to Renewable Energy

3 Growing Offshore Wind Industry Ecosystem

5 Strategic Mid-Atlantic Location

7 Central Access to All Wind Farms on the East Coast

9 World-Class Port and Transportation Infrastructure

13 America’s Top State for Talent

15 An Attractive, Stable, and Predictable Operating Environment

17 Robust Portfolio of Industrial Sites

19 An Exceptional Quality of Life


Commitment to Renewable Energy

In 2020, Virginia enacted the Virginia Clean Economy Act, which supports the growth of the offshore wind power industry and associated supply chain businesses. The legislation sets renewable portfolio standards and promotes the development of 5.2 gigawatts of offshore wind generation by 2034. Also in 2020, Virginia established the first two wind turbines in federal waters to deliver power to the grid in a pilot project with Dominion Energy after being awarded the country’s first and only offshore wind lease for research in 2013.

Renewable Energy Leader Virginia is rapidly becoming a leader in renewable power through bold commitments in the Virginia Clean Economy Act, legislation enacted in 2020. In many locations, Virginia utilities offer access to 100% renewable power.

Coastal Virginia Offshore Wind Off the coast of Virginia, Dominion Energy is developing the East Coast’s only utility-owned offshore wind farm, with a capacity of 2,600 megawatts – enough energy to power 660,000 homes. The two-turbine, 12-megawatt pilot phase began supplying electricity to customers in 2020. Construction of the 180-turbine wind farm should be completed in 2026.


Coastal Virginia Offshore Wind Pilot Project


Growing Offshore Wind Industry Ecosystem Virginia’s vibrant industrial ecosystem provides an ideal home for the burgeoning offshore wind industry as it rapidly expands power generation capacity off the East Coast. Manufacturers, suppliers, and service providers in Virginia benefit from the presence of military installations, federal research assets, and a robust maritime industry with major port, naval, and shipbuilding operations. Industry leaders in Virginia include developers like Dominion Energy, Ørsted Energy, and Avangrid Renewables, as well as suppliers and service providers like Ventower Industries, Phoenix International, Volvo Penta, and Sea Jacks. These companies and several others make up the membership of the Virginia Offshore Wind Landing, a cooperative office space in Norfolk where companies can work, connect, and access resources. Siemens Gamesa Renewable Energy (SGRE) announced in 2021 it would establish the country’s first offshore wind turbine blade facility in the city of Portsmouth in the Hampton Roads region. Virginia-based Dominion Energy had previously selected Siemens Gamesa as its partner for the Coastal Virginia Offshore Wind Project (CVOW) 27 miles off the coast of Virginia Beach. Siemens Gamesa will lease more than 80 acres of the Commonwealth’s Portsmouth Marine Terminal (PMT) and build a facility to produce turbine blades supplying North American offshore wind projects. The facility will create 310 new jobs — 50 of which are CVOW service support jobs — with an investment of $200 million, including more than $80 million in investments for buildings and equipment at PMT. The announcement positions PMT and the Hampton Roads region as a major wind energy hub. Avangrid Renewables, a leading provider of clean, renewable power in the U.S., announced in 2020 the opening of a new Virginia field office to support the development of its Kitty Hawk Offshore Wind project. Located 27 miles off the shore of Corolla, North Carolina, the 122,405-acre project will generate 2,600 megawatts of power, making it the second-largest single project on the East Coast. Landing cables for the project will come ashore at a substation in Virginia Beach’s Sandbridge community. Roughly 600 jobs will be generated by the project within the Hampton Roads combined statistical area, which includes part of northeastern North Carolina. Ørsted, a Danish company and a global leader in offshore wind development, announced in 2020 the securing of 40 acres at the site of the Portsmouth Marine Terminal as a long-term option to service East Coast offshore wind projects. Ørsted’s lease could run through 2026 and be worth nearly $13 million in lease payments and include more than $20 million in improvements.

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The Virginia Offshore Wind Landing is a collaborative office space where companies interested in establishing a presence in Hampton Roads can become part of the region’s maritime network and growing offshore wind industry. Located in downtown Norfolk, it offers companies a way to establish a physical presence in the region and tap into an unmatched network of peers and potential business partners. The purpose of the Landing is to develop a cluster of offshore wind companies and foster the growth of Hampton Roads and Virginia as an innovation and supply chain hub of the offshore wind industry. Founding members of the Landing are global leaders of offshore wind energy and supply chain development, including Atlantic Wind Transfers, Avangrid Renewables, AZCO, Burns & McDonnell, Crowley, Dominion Energy, Nexans, and Seaway 7.

We believe the offshore wind industry in the U.S. has potential to help create thousands of high-paying jobs, support a growing economy, and help us to create efficient, sustainable energy for years to come. The Landing provides an ideal and centralized network to support offshore wind development in Hampton Roads, which is critical to supporting the overall infrastructure and supply chain needs along the Eastern Seaboard. TONY APPLETON Offshore Wind Director, Burns & McDonnell

Coastal Virginia Offshore Wind Pilot Project

Portsmouth Marine Terminal


Strategic that Location Strategic Location Mid-Atlantic Enables Global Connectivity Virginia’s central location on the East Coast offers strategic advantages for the offshore wind industry. Located in the Eastern Time Zone, halfway between Boston and Atlanta, Virginia is an excellent entry point for global offshore wind companies to gain access to major U.S. markets on the Northeast corridor, throughout the Southeast, and across the Midwest.

2nd

densest roadway and railway networks in the Southeast

36-hour Source: VEDP; Esri Business Analyst

5

vessel cruise time to all Bureau of Ocean Energy Management (BOEM) wind areas north and south on the East Coast


Rose Holm Furthers Wind Energy Efforts from First U.S. Location in Virginia Rose Holm is a privately owned Danish metal company that specializes in high-quality fastening products with a focus on supplying the global wind energy sector. Established in 1953, the company is one of Northern Europe’s leading manufacturers, producing threaded bolts for the food and beverage, wind power, and heat exchange industries. Combining decades of knowledge, logistics, and ongoing investments in the latest advanced manufacturing technology, Rose Holm’s two Danish production plants manufacture fastening equipment used in the offshore wind industry. Rose Holm established its first U.S. manufacturing facility in Henrico County in 2020 to be in proximity to a major customer and further its wind energy efforts. The new Rose Holm plant produces bolts used in heat exchange industries and will manufacture two components for the wind energy industry: a bolt for the anchor cage of wind turbine foundations, and a stud to hold the blades of wind turbines. Rose Holm intends to become a key component supplier in offshore wind energy generation.

Virginia International Gateway, Portsmouth

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Detroit

Chicago Central Access to All Wind Farms on the East Cleveland

N Pittsburgh Indianapolis For OEMs, the Hampton Roads region allows ready access to Bureau of Ocean Energy Management (BOEM) offshore wind lease areas from North Carolina to New Jersey.

B

Louisville

The Port o at Hamp

Nashville

Charlotte

Atlanta

7

Wilmingto

Charleston


Coast

New Bedford

New York/New Jersey Philadelphia

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Washington

Richmond

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Baltimore

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BOEM Lease Areas BOEM Call Areas 0

100 Miles


World-Class Port and Transportation Infrastru Virginia is served by the third-largest port on the East Coast, with advantages that distinguish it from every other U.S. Atlantic port. The Port of Virginia, which is only 2.5 hours from open sea, features unrestricted access to the ocean, navigational flexibility, and deep, wide channels that are free of overhead obstructions, allowing easy passage of large and upright cargo. Advanced infrastructure assets include four deepwater terminals in Hampton Roads, an inland marine terminal in Richmond, and an intermodal container transfer facility in Front Royal, with direct interstate highway access from all terminals. After completion of a $1.5 billion modernization and expansion project in 2024, The Port of Virginia will be the deepest port on the East Coast and one of the most advanced in the world. In addition, more than 50 private terminals operate across the Hampton Roads region. Inland, a dense network of roads, railways, and airports provides transport links to supply chain and physical distribution networks, allowing easy worldwide interconnectivity and efficient operational logistics.

Virginia International Gateway, Portsmouth

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ucture

Port Infrastructure The Virginia coastline is geographically rich, with many waterfront industrial properties for development or redevelopment. Virginia’s maritime history is centered in Hampton Roads, where the Chesapeake Bay meets the Atlantic Ocean. This region is home to the shipbuilding and repair docks of Huntington Ingalls, BAE Systems, General Dynamics – NASSCO, Colonna’s Shipyard, MHI Ship Repair and Services, and Lyon Shipyard. Over 50 privately owned port facilities in the Hampton Roads harbor provide specialized services, handling a diverse array of dry and liquid bulk and breakbulk cargo, including cement, asphalt, coal, chemicals, wood, grain, sand, stone, minerals and ore, and oil and petroleum products.


Newport News Marine Terminal (NNMT)

Future Craney Island Marine Terminal (CIMT)

Virginia International Gateway (VIG)

Portsmouth Marine Terminal (PMT)

Terminal Locations, Hampton Roads Harbor


2.5 hours Norfolk International Terminals (NIT)

from open sea, with no overhead obstructions to impede the shipping of large, upright infrastructure and components

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terminals comprise The Port of Virginia and operate on a combined 1,864 acres, including four deepwater terminals

50+

private terminals operate across the Hampton Roads region

55-foot

channel deepening project that will allow two-way traffic will be completed by 2024

$1.5 billion

modernization and expansion project on track to create the deepest, widest, and safest commercial shipping channels and harbor on the East Coast

Source: The Port of Virginia


America’s Top State for Talent Ranked No. 2 in the U.S. for Education and No. 3 for Workforce by CNBC, Virginia is home to a maritime workforce of over 34,000 – more than Maryland, North Carolina, New Jersey, New York, Connecticut, Rhode Island, and Massachusetts combined – and a strong manufacturing base employing nearly 240,000. The offshore wind industry draws talent from thousands of service members who exit the military in Virginia every year, and the state’s growing demographics and excellent school systems ensure a steady flow of new talent. Virginia’s K-12 schools are ranked No. 1 in the South and No. 4 in the U.S. (WalletHub, 2021), and its higher education system is ranked No. 1 in the U.S. (SmartAsset, 2021). The Virginia Talent Accelerator Program – VEDP’s world-class customized talent acquisition and training solution – is available to new and expanding companies to ensure they can quickly attract and onboard high-quality employees. The program is offered at no cost to qualified companies as an incentive for job creation, and grants are available for companies that prefer to manage their own recruitment and training.

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New College Institute

Mid-Atlantic Wind Training Alliance The Mid-Atlantic Wind Training Alliance is Virginia’s first training alliance dedicated to offering a full suite of wind energy-related training with Virginia locations in Hampton Roads and Martinsville. The Alliance was created by the New College Institute, Centura College, and the Mid-Atlantic Maritime Academy, and supports offshore and onshore wind projects in Virginia and the U.S. Mid-Atlantic region, with the New College Institute serving as the host institution. Course offerings include a wide variety of wind energy-related disciplines and programs that range from preparing students for a particular certification to a year-long wind turbine technician program. The courses are certified by the Global Wind Organisation and the National Center for Construction, Education, and Research.

The formation of the Mid-Atlantic Wind Training Alliance is a critical step to developing a talented offshore wind workforce here in Virginia. JOSH BENNETT Vice President of Offshore Wind, Dominion Energy

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Dominion Energy, Richmond

Coastal Virginia Offshore Wind Pilot Project

TMEIC, Roanoke


An Attractive, Stable, and Predictable Operating Environment In 2021, Virginia was again named America’s Top State for Business by CNBC for its business-friendly regulations, stable tax environment, and competitive cost of doing business. Widely recognized as one of the best-run states in the country, Virginia ranked No. 2 for governance by U.S. News & World Report and has maintained a AAA bond rating since 1938, longer than any other state. Virginia’s state and local taxes are lower than the nationwide average, and the costs of leasing, construction, and utilities are competitive with other offshore wind hubs along the East Coast.

Virginia has had a stable 6% corporate income tax rate, one of the lowest in the nation, since 1972.

Sound economic policy and prudent financial management has earned Virginia a AAA credit rating since 1938 — longer than any other state.

Virginia offers an exemption from retail sales and use tax for equipment and materials purchased by manufacturers.

Industrial users paid an average rate of 6.42 cents/ kWh in the winter of 2020, compared to the national average of 6.61 cents/kWh.

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Robust Portfolio of Industrial Sites Virginia offers a rich portfolio of sites, including many waterfront industrial properties that are well suited for the offshore wind industry. Beyond the coastal regions, Virginia has hundreds of fully characterized sites of 25 acres or larger, dozens of certified sites, and a growing inventory of spec buildings and virtual buildings. Companies looking for ready-built options have ample choices among the thousands of existing buildings with space for lease, representing over 29 million square feet of industrial space, and including over 450 vacant industrial buildings of 10,000 square feet or larger. Construction is underway on 8.3 million square feet of industrial space across the state.

77

275

Baltimore

Maryland Winchester

7 Leesburg

Total Site Acreage

Certified Sites Additional Sites in Development

Washington, D.C.

66

99 and below 100 to 499

Delaware

Alexandria

79

95

211

500 and above

81

33

Culpeper

17

Harrisonburg

64

West Virginia

Fredericksburg

250 301 220

Staunton

17

Charlottesville

360

29

64

33

15

Lexington

64

Beckley

220

13

81 60 460

Blacksburg

Kentucky 77

19

23

Petersburg

81

95 460

Nor folk

29 South Boston Mar tinsville

58

Johnson City

64

85

360

220

221

77

Bristol

Williamsburg

460

501

Wytheville

26

360

460

Wise

Tennessee

288

Farmville

Lynchburg

Roanoke

460

58

17

Richmond

Danville

58 South Hill

Emporia

Virginia Beach

501

North Carolina

74

85 Winston-Salem Knoxville

40

Greensboro Durham

Raleigh

40+

sites are certified as project-ready under Virginia’s Business Ready Sites Program

17

12

of Virginia’s certified parks have graded pad sites available for construction

12-18 mos. for project-ready sites to have utilities on-site and all infrastructure in place


Strategic Waterfront Sites Virginia offers access to premier waterfront sites for the offshore wind industry. Major OEMs or suppliers requiring waterside access can find a home in Virginia’s harbors. Numerous sites offer existing quayside infrastructure with large acreage, deep channels, and unobstructed access to open sea.

Lambert’s Point Docks, Norfolk

Premier Deepwater Terminals Lambert’s Point Docks Lambert’s Point Docks is a 117-acre breakbulk marine terminal in Norfolk. The terminal accommodates large vessels requiring over 35-foot drafts and has on-dock rail access and no overhead obstructions to open seas.

Cape Charles Terminal

Cape Charles Terminal, Cape Charles

The Cape Charles site is a collection of industrial properties and vacant land encompassing about 90 acres on the Eastern Shore of Virginia. The terminal currently accommodates vessels requiring 16-foot drafts, and due diligence is being conducted to deepen and expand the channel. The facility has great access to open seas with no overhead obstructions.

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An Exceptional Quality of Life

With a competitive cost of living, a mild, four-season climate, and unrivaled natural and cultural attractions, Virginia offers an exceptional quality of life. Virginia residents enjoy life in vibrant cities and picturesque small towns, within easy driving distance to scenic shorelines and mountain vistas. For these reasons and many others, Forbes ranked Virginia No. 1 in the U.S. for quality of life.

Tinker Cliffs, Botetourt County

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The Omni Homestead Resort, Bath County

Virginia Creeper Trail, Washington County


Smith Mountain Lake, Bedford County

Carpenter Theatre, Richmond

Sandbridge, Virginia Beach

Arlington County

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Waterside District, Norfolk

Expertise • Collaboration • Innovation • Solutions The Virginia Economic Development Partnership’s (VEDP) team of dedicated and knowledgeable professionals is committed to Virginia’s economic success, and connects industry-leading businesses to the resources they need to make relocation and expansion successful endeavors. From site selection, customized research, cost analysis, and coordination with public and private partners, to discretionary incentives and workforce solutions, VEDP’s services are tailored to companies’ unique requirements. To learn more about VEDP’s expertise and resources, visit VEDP.org.

© January 2022