Virginia Has An Opportunity To Be A Central Player In Turbine Industry
As Virginia and the U.S. head toward an economy powered by renewable energy, much attention has been given recently to the development of offshore wind. In 2019, Dominion Energy announced plans to install over 200 wind turbines in federal waters off the coast of Virginia. In powering up to 650,000 homes, the wind farm will help to bring the state closer to its goal of reducing carbon emissions. And earlier this month, the Biden administration gave approval to a project that will result in the construction of the U.S.’ first commercial-scale offshore wind farm, with construction expected to begin this summer.
Currently, the turbines used in American offshore wind farms consist of parts manufactured in and shipped over from Europe. This is costly, and the lengthy transport of fragile equipment can be precarious. With the development of offshore wind ramping up, a unique opportunity exists for Virginia to carve out its own space in the burgeoning turbine production industry.
Home to one of the largest harbors on the East Coast, Hampton Roads is an excellent location for manufacturing turbines. The same conditions that make the region excellent for ship building — namely, a wide harbor, deep water, a lack of bridges obstructing passage, and a skilled workforce already equipped for manufacturing — also would make Hampton Roads ideal for wind turbine construction.
The world is already beginning to realize the enormous potential the Hampton Roads region has for developing a turbine production industry. Ørsted, Denmark’s largest energy company and the world’s largest developer of offshore wind, already leases space in the Port of Virginia to prepare materials for distribution throughout the U.S. And recognizing the harbor will continue to see manufacturing use, the General Assembly included $40 million in upgrades for the Portsmouth Marine Terminal in its 2020 budget. The funds will be used for soil stabilization and reinforcement.
The continued development of the turbine industry will come with tremendous economic benefits for Hampton Roads and the rest of the state of Virginia. A 2020 report found that the industry will eventually bring 5,200 new jobs to Virginia, with most concentrated in the Hampton Roads region. Altogether, these jobs will provide workers with a total of $270 million in pay and benefits. A Hampton Roads-based turbine production industry will also lead to $21 million in revenue for local governments and $18 million in Virginia state tax revenues, according to the report.
With a number of new wind farms expected to be approved for construction this summer, wind power seems poised to take off in the United States. Virginia finds itself with a unique opportunity to become a central player in a developing domestic wind turbine industry. The state has already invested in infrastructural improvements that will foster turbine production, and the General Assembly should remain receptive to proposals that will bolster the industry. Doing so will bring high paying jobs to the Hampton Roads region and help the state pull in more revenue, all while building a cleaner economy.