The Port of Virginia will lease 72 acres of the Portsmouth Marine Terminal to Dominion Energy to use as a staging and pre-assembly area for the foundations and turbines that are to be installed 27 miles off the coast of Virginia Beach.
“This location at the Port of Virginia … has deep water access, no overhead restrictions, a strong, experienced maritime workforce and sufficient space for these large wind infrastructure components,” said Chair, President and CEO of Dominion Energy Robert Blue. “It is perfectly situated to serve the Virginia offshore wind project and grow the domestic supply chain needed to complete other offshore wind projects in the United States.”
The lease term is 10 years – valued at nearly $4.4m annually – and includes an option for two five-year renewals. The lease agreement includes significant upgrades to ensure the terminal can handle the weight of the large components needed to build the offshore turbines.
Currently, Dominion Energy’s two-turbine pilot project is operating off the coast of Virginia Beach. Last month, the Bureau of Ocean Energy Management issued a Notice of Intent for the full commercial project, triggering a federal review of the project and preparation of an environmental impact statement, which will take about two years.
The Virginia wind project is expected to produce more than 2,600 MW of renewable energy.