New York City is solidifying its position as a leader in offshore wind development with the announcement of a second major hub.
The Arthur Kill Terminal, situated on Staten Island, is projected to be the largest privately-owned wind hub in the U.S., boasting a 1-gigawatt capacity.
Developed by Atlantic Offshore Terminals (AOT), a startup specializing in offshore wind infrastructure, the Arthur Kill Terminal represents renewed optimism in the industry, despite setbacks faced last year due to cancellations and various external factors.
Financial Backing from Major Players
The project has garnered significant financial support, with alternative asset manager Apollo Global Management committing to invest in 2021.
Apollo, with a vast portfolio of assets under management, recognized the potential of the Arthur Kill Terminal and its alignment with their renewable energy infrastructure expertise and commitment to environmental, social, and governance (ESG) principles.
Empire State Development (ESD), New York State’s economic development agency, has also thrown its weight behind the project, securing a $48 million grant from the federal Department of Transportation in 2022.
The terminal will address the logistical challenges of transporting large wind turbine components by offering a non-bridge restricted offshore wind staging and assembly port.
Pioneering Next-Generation Offshore Wind Technologies
The Arthur Kill Terminal is designed to accommodate cutting-edge offshore wind technologies, including floating offshore wind turbines and foundations.
This forward-thinking approach positions the terminal as a key player in the evolving landscape of offshore wind development, potentially catering to projects requiring floating turbines in deeper waters.
Meanwhile, in Brooklyn, construction has commenced on the South Brooklyn Marine Terminal, another major offshore wind hub. This facility has already secured a client in the form of the 810-megawatt Empire I offshore wind farm, developed by Equinor.
Upon completion, the South Brooklyn Marine Terminal will be one of the largest dedicated offshore wind hubs in the U.S., poised to support future projects, including the 1,260-megawatt Empire Wind II.
Sustainable Design and Green Initiatives
The South Brooklyn Marine Terminal is planned as a low-emissions facility, incorporating solar power and EV charging stations. This reflects a commitment to sustainability and environmental responsibility in offshore wind development.
The rapid resurgence of offshore wind plans along the Atlantic coast is a significant setback for fossil fuel interests that have allegedly supported local opposition to these projects.
While opposition was successful in the early 2000s, renewable energy stakeholders have since gained financial strength and influence.
Key Players in the Offshore Wind Industry
Equinor, a major international energy company and leading offshore wind developer, has ambitious plans for the U.S. market, with over 4 gigawatts of offshore wind capacity planned along the East Coast. Ørsted, another key player, aims for 5 gigawatts of offshore wind in the same region.