Projo Biz Blog

2nd project for New Jersey wind developer could mean more jobs for R.I.

3:35 PM Fri, Oct 03, 2008 |
By Tim Barmann    Email this author |   Email this entry

Deepwater Wind, the developer selected last week to build an offshore wind farm off the coast of Rhode Island has won the bid to develop another major wind farm.

New Jersey officials this afternoon announced they had selected Garden State Offshore Energy, or GSOE, to build the 96-turbine project 16 miles off the New Jersey coast. GSOE is a joint venture of PSEG Renewable Generation, a utility company and Deepwater Wind, based in Hoboken, N.J.

Last week, Gov. Carcieri announced that his office had selected Deepwater Wind to build and finance a $1.5 billion wind farm, 15 to 20 miles off the coast of Rhode Island. It would be one of the largest private development projects ever constructed in the state.

This afternoon, Chris Brown, the chief executive officer of Deepwater, told The Providence Journal that winning New Jersey project will mean more jobs in Rhode Island, where the company plans to build its manufacturing headquarters for the East Coast.

The facility will be located at the Quonset Business Park in North Kingstown, the company said last week. The facility will be used to manufacture the structures to support the wind turbines, derrick-like structures called "jackets," and employ up to 800 people, Deepwater said.

Yesterday's award will mean even more jobs in Rhode Island, beyond the 800 already promised, Brown said in a telephone interview.

How many more?

Brown was reluctant to give an estimate. "That's going to be up to our planning people - significantly more," he said.

Gov. Carceri released a statement heralding the New Jersey development as being good news for Rhode Island.

"This is as much a win for Rhode Island as it is for Deepwater Wind," the governor said.

"By establishing ourselves as an early leader in off shore wind energy production and the center for jacket manufacturing, we gain an important competitive advantage in attracting alternative energy companies, including turbine manufacturers, to the state and in creating new high wage, green energy jobs across Rhode Island."

GSOE has proposed building a 345.6 MW offshore wind facility that would produce enough electricity to power approximately 125,000 homes annually. (Deepwater's Rhode Island project would be somewhat bigger with a capacity of 385 megawatts of electricity -- about three-quarters of the capacity of the natural-gas fired power plant at Dominion Energy's Manchester Street Station in Providence.)

The New Jersey project would cost about $1 billion, and would be financed privately.
It would be located southeast of Atlantic City, 16 miles off the New Jersey coast.

"At this distance," GSOE said in a statement, "the wind farm would be barely visible from shore, addressing one of the major concerns of beach communities."

The wind farm could begin generating energy in 2012 with the entire project operational in 2013.

A news release issued by the New Jersey Board of Public Utilities said the project would produce power at a cost of 4.3 cents per kilowatt-hour, which is substantially below current market prices for electricity. (Rhode Islanders currently pay 12.4 cents per kilowatt-hour.)

However, Janeen Lawlor, a spokeswoman for the board, said the BPU learned later that figure is not correct and was the product of a math error by the BPU staff. Lawlor said her office did not have the correct cost per kilowatt hour. She said the incorrect number was not used by the board during its evaluation process.

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Comments

Deepwater Wind, the developer selected last week to build an offshore wind farm off the coast of Rhode Island has won the bid to develop another major wind farm.

Clearly the Quonset Davisvill Industrial Park in NK is a great State of RI investment and about to pay another divined with real jobs for RI residences. I congratulate ALL hands for their work on the Industrial Park and the companion common sense approach to addressing RI energy needs now and in the future.
I venture that other energy and job solutions can be had with a continued realistic focus on the future.

In contrast the Half Baked Suggestion by Some in State Government (starting with our State Treasurer) to actually step in and or even consider a purchase of the Twin River Gambling facility is just wrong headed.
The State of RI does not belong in the so called gaming business period. Second the facility can not seem to make it on its own for what ever reason. Accordingly it should be allowed to fail just as both Horse and dog tracks before it have done. The State reliance on the Gaming business for state revenue is only a very short sighted and temporary solution that is already seeing a sunset. The gaming business poisons the good works of a state government, especially further potential to corrupt the already stressed workings of our RI general Assembly.

First one only look over to the neighbor state of CT and see the continued rounds of layoffs and permanent job reductions at FOX Woods. Further the recent decision by Mohegan Sun to halt its present construction projects and future plans for more facilities expansions. Finally even some recent speculation has been heard as to pressure on Mohegan Sun as to their finical condition and status of the rapidly approaching Bonds due date that must be serviced. This all points to Gaming as impacted by the economic times which might even last for upwards of 10 or more years! Yes, people will still game on BINGO and Lottery but the high rollers are and their followers are already gone. Yes, after sucking money out of our already very stretched economy.

Again the State of Rhode Island needs to stay focused on the longer view of rebuilding its economy with solid and predictable jobs for RI Citizens. Accordingly any monies that might be available down the road must be applied to a continuation to the recipe that still is a very good idea and shortly will bring JOBS back to RI at the NK Quonset / Davisvill Industrial Park.

Yes, in parallel we still need to continue State Government reform. First and last - reducing the cost and size of state government via the remaining reforms to be implemented that addresses overspending for State Employee pay, benefits and pensions well beyond regional market standards. While some progress has been made more is needed rapidly. Another area of opportunity is the cost of our RI General Assembly itself. Clearly a reorganization to a county form of representation could dramatically reduce the cost and size of this body while even restoring more balance to its deliberations! Following such consolidate & move to a regional approach for ALL local governments and related services. Yes, schools, fire, police , public works et al.
Yes, we must challenge ourselves to restructure our government that today lacks affordability and dramatically retards opportunity for job creation and ability to address its fundamental responsibilities.
William F Horan Middletown, RI




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