Siemens Gamesa Renewable Energy SA said Oct. 25 that it will invest $200 million in the first U.S. manufacturing facility for offshore wind turbine blades, to be located at a marine terminal in Portsmouth, Va.
The Siemens Energy AG subsidiary said in an announcement that the facility's output will serve Dominion Energy Inc.'s 2,640-MW Virginia Beach Offshore Wind Project (Coastal Virginia Offshore Wind). Under a preferred supplier agreement, the 800-foot turbines will have a capacity of up to 14 MW, but they will have a technology that could put the output nearer to 15 MW, according to a Dominion spokesperson.
The announcement comes as Congress considers tying U.S. renewable energy tax incentives to domestic content requirements that would force developers to meet certain thresholds of American-made material in projects. Some in the industry have said such requirements would undercut President Joe Biden's goal to have 30 GW of offshore wind installed by 2030 as the U.S. supply chain for the burgeoning industry remains in its infancy.
"As the project progresses, I look forward to working at the federal level to pass infrastructure legislation, which will support a wealth of other investments to drive innovation, job creation, and economic growth for years to come," U.S. Sen. Mark Warner, a Virginia Democrat, said in the Siemens Gamesa announcement.
Liz Burdock, CEO and president of the Business Network for Offshore Wind, in a statement called the decision a "historic moment for our industry's development and critical to our ongoing efforts to localize a robust supply chain."
"With the global demand for offshore wind growing exponentially, we must accelerate development of a local supply chain to ensure the U.S. can achieve its renewable energy goals and create well-paying American jobs in the process," Burdock said. "Today's announcement is a welcome sign of growing investor confidence in the U.S. market and highlights the Commonwealth of Virginia's emergence as a hub for offshore wind activity."
The facility, which would be located on a site of more than 80 acres, will support 260 jobs once fully operational, Siemens said. Virginia is supporting construction with incentives for site improvements.
"When operational, the facility is immediately intended to support deliveries to the Coastal Virginia Commercial Project," Steve Dayney, head of Offshore North America at Siemens Gamesa Renewable Energy, said in a statement to S&P Global Market Intelligence.
"Siemens Gamesa will look to potentially expand the facility if awarded future projects in the region, creating additional jobs in the future," Dayney said. "We also hope that this investment spurs other suppliers to create a strong local offshore wind supply chain in the U.S."
Jeremy Slayton, a spokesperson for Dominion Energy, said that under the current construction timeline, the project will begin construction in 2024 and be complete in 2026. The U.S. Bureau of Ocean Energy Management opened an environmental review of the project in July; that process is expected to take up to two years, Slayton said.
"Siemens Gamesa will reconsider the plans for the facility if the order does not become firm," Dayney said when asked what would happen if Dominion's project is not approved.
