On Thursday, January 28, 2013, Maine’s Public Utility Commission (PUC) approved, by a 2-1 vote, the terms of a long-term contract for the first floating turbine offshore windfarm in Maine. After a few months of negotiation, this is good news for the state, and for renewable energy.

This vote clears a major hurdle toward Statoil putting four, three-megawatt wind turbines on floating platforms in deepwater 12 miles off Boothbay, and marks the early days of implementation of Maine’s Ocean Energy Act. Signed into law in 2009, the Act encourages projects like this one, so as to support the development of renewable energy technology that harnesses ocean energy. In this project, energy generated from the project would be transported via underwater cable to a transfer station on land, delivering renewable energy to the mainland.

Approval for this project has been a long time coming. Statoil, which has successfully operated a one-turbine pilot project off the Norwegian coast for the past year, originally sought approval for a version of its project in October of 2012. At the time, CLF submitted comments supporting the project and the long-term contract, but the PUC tabled its deliberations and asked Statoil to come up with terms that would have a lower price for the electricity generated and guarantee more future benefit to Maine. Click here to see PUC Chairman Welch’s notes from deliberations. Since then, the project has only improved.

Working with PUC staff, Statoil revised the terms of its contract to reduce the price of energy to Maine consumers and add more assurances that if its initial small scale windfarm is successful, it will make all efforts to employ Maine companies as it scales up the project. Click here to see Statoil’s Revised Term Sheet.  We liked these additional terms even more than Statoil’s initial proposal. Again we wrote in favor of the project and expressed our increased support. Click here to view our additional comments.

The vote at this past week’s hearing was 2-1, with Commissioner Littell and Chairman Welch voting in favor of the project. Littell has long been a champion of efforts to reduce carbon emissions, whether during his time at the DEP where he championed RGGI or now at the PUC. Welch deserves credit as he was not supportive of the long-term contract in its initial phase, but recognized that Statoil had made efforts to address his concerns and even more so recognized the potential that offshore wind holds for Maine.

Photo courtesy of phault @ flickr

This is an exciting time for clean energy in New England. Why? Because our region could have not one but three offshore wind farms constructed by 2016.  Not only that, these would be the first three in the nation!

The Cape Wind Project, off the coast of Cape Cod, will site 130 wind turbines between 4–11 miles offshore and produce an average of 170 MW of electricity, or about 75% of the average electricity demand for Cape Cod, Martha’s Vineyard, and Nantucket Island. Block Island Wind Farm is scheduled to be constructed in Rhode Island state waters next spring. It is a 5 turbine, 30 megawatt demonstration-scale wind farm about three miles off of Block Island which will generate over 100,000 megawatt hours annually, supplying most of Block Island’s electricity with excess power exported to the mainland. And on a very exciting note, here in Maine, international energy company Statoil’s proposal to build a four turbine floating wind park is moving forward. For recent news coverage, read here.

Clean energy is sprouting up all around New England. For some projects, it’s about time. Recent FAA approvals on Cape Wind, for instance, come after more than a decade of exhaustive reviews and strong opposition from dirty energy-funded opponents. Each of these projects has enormous potential. Together, if built, these three offshore wind farms would transform New England’s energy mix.

Here in Maine, Statoil’s unsolicited bid to develop the floating wind farm is moving through the federal review process. The Bureau of Ocean energy Management (BOEM) has published a notice to determine if there are other developers interested in competing to use the area and to solicit comments about the proposal. The notice is published here.

CLF will provide comments that balance our commitment to helping New England develop clean renewable energy with protecting the ocean environment. BOEM published a second notice that it will prepare an environmental impact statement (EIS) when Statoil submits its construction and operations plan (COP). The EIS will consider the environmental consequences associated with the Hywind Maine project. BOEM will accept public comments about the environmental issues that should be considered in the EIS until November 8. For more, read here.

In addition, the Maine Public Utilities Commission (PUC) is reviewing the proposed terms of a long-term contract that would permit Statoil to sell the energy generated from the wind farm  into Maine’s energy grid over the next 20 years. The PUC’s authority to approve this contract flows from Maine’s 2010 Ocean Energy Act, which supports research and development of offshore wind energy technology. The PUC may decide whether to accept the proposed contract terms within the month.

For a current and accurate summary of the state of offshore wind off the Atlantic Coast, please read the National Wildlife Federation’s report released on September 24, “The Turning Point for Atlantic Offshore Wind Energy.” CLF helped write sections of the report and co-sponsored it.

There’s no question we’re making incredible progress – but there is more to be done. If you support this work, sign up to become a CLF e-activist to keep informed about our work. And check back in regularly for updates as we try to get these projects built!

Last week the development of wind energy offshore Rhode Island and Massachusetts moved one step closer with the publication of an environmental assessment (EA) by the Department of the Interior, Bureau of Ocean Management (BOEM) regarding commercial wind lease issuance and site assessment activities on the Outer Continental Shelf (OCS). The purpose of the EA is to determine whether or not issuance of leases and approval of site assessment plans within a designated area offshore Rhode Island and Massachusetts would lead to reasonably foreseeable and significant impacts on the environment. The EA is available online here.

BOEM will accept public comments on the EA and then will determine whether or not to issue a finding of No Significant Impact or conduct additional analysis under NEPA. The deadline for public comments is August 2.  CLF is reviewing the 379-page EA, with a particular focus on the impact to sensitive marine habitats, fish populations and fishing activities, water quality, and marine mammals – particularly the endangered right whale – and sea turtles. CLF will submit comments. CLF believes that offshore wind deployment is a critical clean energy supply resource which must be deployed expeditiously and in significant quantities, in a manner that protects ocean wildlife and sensitive seafloor habitats.

BOEM is hosting two public information sessions to provide an overview of the EA and the next steps in the leasing process. At these sessions, BOEM will accept comments and address questions, so CLF encourages interested members to attend.

Public Information Sessions:

Monday, July 16, 2012, 7:00 p.m.
University of Rhode Island
Coastal Institute – Hazard’s Room
218 South Ferry Road
Narragansett, Rhode Island 02874

Tuesday, July 17, 2012, 7:00 p.m.
Fairfield Inn & Suites
185 MacArthur Drive
New Bedford, Massachusetts 02740

Image courtesy of Statoil.

This January, my colleague Sean Mahoney and I met with representatives of Statoil – one of the largest oil and gas companies in the world – to discuss the company’s plan to develop a floating wind turbine project, known as Hywind, off the Maine Coast. Statoil was also considering a location off the coast of Scotland. Recently, the company decided to move ahead with the initial stages of evaluating the potential for the project in the Gulf of Maine. Specifically, Statoil will evaluate the economic and environmental feasibility of a4 turbine array roughly 12 nautical miles from Boothbay in 460 to 520 feet of water.

As an initial step forward on Hywind, Statoil will hold a series of public open houses regarding the project later this month.  (For a calendar of these meetings, click here.) The company told CLF it intends to determine whether the Hywind Maine project is feasible by year end 2012, make a final investment decision in 2014, and potentially be installing the floating turbines in 2016.

The schedule of Statoil’s public introductory meetings is:

June 25, 2012:
Boothbay – Boothbay Firehouse (4 – 7pm)
911 Wiscasset Road, Boothbay, Maine

June 26, 2012:
Rockland – Rockland Public Library (5:30-8pm)
80 Union Street, Rockland, Maine

June 27, 2012:
Portland – Gulf of Maine Research Institute (4 – 7pm)
350 Commercial Street, Portland, Maine 

All sessions will be in Open House format so individuals can speak to Statoil team members.

For more information, please contact:

Ivy Frignoca, CLF Maine
Sean Mahoney, VP & Director CLF ME