Getting the Offshore Wind Industry Started in Maryland
On April 9, 2013, Governor Martin O’Malley signed into law the Maryland Offshore Wind Energy Act of 2013. With his signature, Maryland became the first state in the nation to create a market for offshore wind and provide the certainty that both a developer and the financial community require to construct an offshore wind project.
Setting Maryland apart from other states is the funding of the Offshore Wind Renewable Energy Credit (OREC), a mechanism to incentivize the development of up to 500 megawatts (MW) of offshore wind capacity. The bill’s OREC is expected to support the construction of a roughly 200 megawatt offshore energy project ten miles off of Maryland’s coast. The bill also requires electricity suppliers to purchase ORECs and carves out up to 2.5% of the state’s energy supply for offshore wind energy, creating a demand for the new clean energy sector.
The Maryland offshore wind legislation sets a vision for the future and is a critical catalyst in bringing new manufacturing to Maryland. The Governor and General Assembly approved a bill that requires that the offshore wind project will only get MD Public Service Commission approval if it meets positive state economic benefits with a particular emphasis on in-state manufacturing. As the first state with a market and demand for offshore wind, Maryland can create a supply chain cluster that could serve future offshore wind projects along the East Coast.
The bill provides $10 million in funding to Maryland’s small businesses, including minority-owned businesses, to ensure that they are ready to participate in the offshore wind supply chain. Additionally, this legislation applies the principles of Maryland’s minority business enterprise to all offshore wind projects. The passage of the bill creates additional market opportunities to deploy and utilize the IP from the State’s defense contractors as well as enhance and invigorate Maryland’s existing:
• marine industry
• manufacturing industry
• electrical and mechanical engineering industries
• construction industry
• composite materials industry
This strong policy commitment, plus our state’s unmatched maritime and defense expertise, along with its port infrastructure, would make Maryland a destination of choice for new supply chain facilities.
For bill details, see: House Bill 226 - Chapter 3, enrolled by the Governor.
Spotlight on BizMDOSW
BizMDOSW tours Lindo, Denmark offshore wind industrial park and Bremerhaven, Germany
The tour has included visits to Bladt Industries, where 3-leg foundations are being built for a new farm, VESTAS to observe the new 8 MW nacell under full electrical test and Siemens, where generators are being built. Among the invited briefings were Energinet (www.energinet.dk), a nonprofit organization that acts as an intermediary between the Danish Government and the windfarm developer and Frank Larson of Blue Water Energy, the firm responsible for 1000 subcontractor personnel during the Anholt installation.
The group is now in Frankfurt, Germany where they will attend the EWEA 2014 Offshore Wind conference.
BizMDOSW’s Study Tour “Export Now to Build for Tomorrow” Begins
Baltimore, Maryland (November 13, 2013) – Today, a prominent group of business and government leaders, led by The Business Network for Maryland Offshore Wind (BizMDOSW), announced their participation on a ten day study and business development tour to Denmark and Germany entitled, “Export Now to Build for Tomorrow.” The educational tour will assist Maryland businesses to export products and services for the growing European wind energy industry and gain critical institutional knowledge for the burgeoning North American offshore wind industry. The coinciding public-private sector delegation led by Maryland Energy Administration (MEA) Director Abigail Ross Hopper and Maryland Department of Business and Economic Development Secretary Dominick Murray will meet with top Danish and German governmental officials and offshore wind businesses in order to assist Maryland businesses’ entry into the offshore wind global supply chain. After the tour’s completion, the State of Maryland will be working under a formal collaboration agreement with the Danish government to learn best practices for the construction and development of Maryland’s offshore wind industry. Catch the full story on citybizlist Baltimore.
Offshore Wind Cooperation Agreement Between Maryland and Denmark Signed November 12, 2013
Danish and Maryland officials have signed an agreement to formally work together. Members of BizMDOSW were in attendance at the signing ceremony. “Wind resources off US coasts are estimated at more than 4,000 GW, so there is a huge potential to reduce US emissions if this energy is utilized. Denmark has experience with the whole process when it comes to establishing and operating offshore wind farms. We wish to share that knowledge with the energy regulators in Maryland” says Minister for Climate, Energy and Building Martin Lidegaard. In the National Budget 2013, the Government of Denmark set aside five million Danish Kroner [approx. $1 million] over two years to establish bilateral cooperation with one or two industrialized countries. The funds will primarily be used to remunerate Danish energy experts and to a lesser extent external advisors.
The offshore wind farm off Maryland has been selected as the first project. The fulcrum of our cooperation will be issues related to regulating and managing the risks associated with Maryland’s tender for establishing an offshore wind farm of 200 MW, about 20 km off-coast from the popular tourist destination Ocean City. The implementing regulation for the offshore wind farm must be prepared by next summer and it is expected that other US coastal states with plans to exploit the wind resource could benefit from the experiences generated though the cooperation between Denmark and Maryland. Maryland Governor Martin O’Malley, “Taking action on offshore wind positions our State for greater job creation and opportunity, while moving us forward toward a more sustainable energy future. By forging international partnerships to advance this promising clean energy technology we strengthen our economy and competitiveness while ensuring the sustainability of our people For more information see Smart Energy News:
BizMDOSW members met with BOEM Director Tommy Beaudreau on October 29th.
This will be a follow-up meeting to the prior meeting with BOEM staff and will discuss the Maryland Wind Energy Area. If you are interested in the details of this meeting, please contact BizMDOSW Executive Director, Liz Burdock at Liz@bizmdosw.org.
BizMDOSW Wins 2013 Maryland Clean Energy Center Advocacy Award
A hearty congratulations to our very own Liz Burdock who won the advocacy award! View the full list of this year’s Maryland Clean Energy Center award winners here.