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NEW LONDON, CT (WFSB) – What was touted as a "major announcement" in New London on Thursday concerned an agreement to turn the State Pier into a hub for the offshore wind industry.
State officials and their partners said they reached an agreement on a jetty port development plan that will revitalize it and hopefully make it a hub for the offshore wind sector.
Governor Ned Lamont joined state and local officials, as well as representatives from the Port Authority of Connecticut, Gateway, of the Danish company. Ørsted green energy and Eversource, for this announcement.
"It's going to be transformative in the next two years and in future generations," said Lamont.
A $ 93-million public-private investment will modernize the jetty infrastructure to accommodate large-body cargoes.
The plan provides for the modernization of the wharf infrastructure for the wind components of Ørsted and Eversource and the conclusion of a lease of 10 years duration between the two companies. Companies will use the State Pier for assembly and organization of wind turbines and generators.
"The marine economy in Connecticut has tremendous potential to stimulate economic growth and create jobs across the state, and the redevelopment of State Pier is a central part of that growth," said Lamont. "This new public-private partnership reaffirms the state's unwavering commitment to increase offshore wind energy purchases and to make the economic expansion of our maritime economy a reality." reality. We look forward to working with our new partners to position Connecticut as the leader in the offshore wind industry and to develop economic opportunities throughout the region. "
The president of the Connecticut Port Authority, Scott Bates, said that this plan was exactly the reason why the state's port authority had been created.
"For more than a year, we have been working on a vision in which increased port activity boosts economic growth and creates jobs throughout the state," Bates said. This port development plan brings this vision to life. In the short term, our local workforce will transform State Pier into a world-class port facility, and our regional manufacturing staff will build components for our new partners in the offshore wind industry. In the longer term, State Pier's increased capacity will continue to increase the flow of cargo to New London, further extending the economic reach of our state to workers across Connecticut. "
State officials summarized the outline of the plan as follows:
- The Port Authority of Connecticut is responsible for the supervision and execution of the development project. Construction work is expected to begin in January 2020, following a call for tenders and after obtaining the permit. It should be finished in March 2022.
- At the end of the project, Ørsted / Eversource will enter into a ten-year lease with a seven-year extension option.
- A total of $ 93 million in capital investments from multiple sources will go towards the development of State Pier:
o Ørsted / Eversource is committing $ 35 million in new capital expenditures to improve State Pier's infrastructure, including $ 2.5 million for the CPA to offset the operational costs of the three-year development project.
o The State of Connecticut commits $ 35.5 million to improve State Pier's infrastructure, including $ 25.5 million from the Port Authority of Connecticut, as previously announced, and $ 1 million from the Department of Economic and Community Development through the Manufacturing Assistance Act.
o An amount of $ 22.5 million had already been committed to improve State Pier's infrastructure, and Ørsted / Eversource will honor this commitment. - The Connecticut Port Authority will receive an annual payment of $ 3 million in fixed fees and will be eligible for a one-time completion award for the timely completion of the development project in March 2022.
- Gateway will serve as the terminal operator and will continue to be responsible for the following charges, as set out in the original operating agreement with the Port Authority of Connecticut:
o A variable commission of 7% of its annual income (the minimum annual guarantee is not in force during the term of this agreement).
o 50 percent of docking and docking fees. - This agreement is conditional on the receipt of all federal permits and states to support the facility development project.
A previous "major announcement" about the Lamont office pier revealed a partnership between the city of New London and the Port Authority of Connecticut. This was done on January 30th.
The partnership implies that the city receives, among other benefits, 10% of the revenue of the port authority from the State Pier.
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