CT, wind energy producer add $45M to New London State Pier upgrade

Photo | Contributed The Port Authority oversees the State Pier in New London.

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By Joe Cooper

The state and the terminal operator of New London’s State Pier unveiled a new public-private partnership Thursday that raises investments for upgrading the pier into an offshore wind hub.

Gov. Ned Lamont on Thursday announced the quasi-public Connecticut Port Authority and terminal operator Gateway are partnering with Bay State Wind, a joint venture between Eversource and Denmark-based global offshore wind energy producer Ørsted, to revitalize the facility in two phases by 2022.

In total, the $93 million partnership includes $45 million in new funding announced Thursday and $48 million of previously announced commitments for improving the state pier.

Federal and state permits must be granted before the project can move forward.

The development is aimed at upgrading the pier’s heavy-lift capacity to better meet the needs of the offshore wind industry, which Lamont says has potential to grow southeastern Connecticut’s maritime economy and create new jobs.

“This new public-private partnership reaffirms the unwavering commitment of the state to increase procurement of offshore wind and make the economic expansion of our maritime economy a reality,” the governor said.

According to plans, the first phase, spanning over three years, includes infrastructure upgrades to meet the heavy-lift requirements of Ørsted and Eversource’s offshore wind components.

Upon completion, Ørsted and Eversource will begin a 10-year lease agreement that grants the pair use of the pier for wind turbine generator assembly, among other work. Ørsted and Eversource will have the option to extend the agreement by seven years.

The port authority, which oversees the state's three deepwater ports, is tasked with overseeing and executing the project.

Construction is scheduled to begin in Jan. 2020 following a solicitation and permitting process and completed by March 2022.

The $93 million project includes the following investments:

The state pledged $35.5 million for the pier improvements, including $25.5 million from the port authority, as previously announced, and another $10 million in new funding from the state Department of Economic and Community Development through the Manufacturing Assistance Act.

Ørsted and Eversource have committed $35 million in new funding for upgrades, in addition to a previously announced commitment of $22.5 million.

The port authority will reap annual fixed fee payments of $3 million and will be eligible for a one-time bonus upon completion in 2022.

Thursday’s announcement is good news for New London’s coffers as the port authority in January committed to sharing 10 percent of revenues from the pier with the city in addition to $75,000 a year to offset costs for police, fire and other services it provides.