Catching the Wind Harnessing the Potential ofOffshore Wind Power to Clean Our Air and Create Jobs in Maryland

Catching the WindHarnessing the Potential of Offshore Wind Power to Clean Our Air and Create Jobs in Maryland Environment Maryland Research & Policy Center United Steelworkers Tony Dutzik, Rob Kerth and Ben Davis, Frontier Group Brad Heavner, Environment Maryland Research & Policy Center Jim Strong, United Steelworkers March 2011

AcknowledgmentsThe authors thank Ursula Powidzki and Elaine McCubbin of the Maryland Departmentof Business and Economic Development, Andrew Gohn of the Maryland Energy Admin-istration, and Jen Mihills of the National Wildlife Federation, for their insightful review ofthis document. Thanks also to Elizabeth Ridlington and Susan Rakov of Frontier Groupfor their editorial assistance.Environment Maryland Research & Policy Center thanks the Rauch Foundation for mak-ing this report possible. Thanks also to the Town Creek Foundation, the Zanvyl & IsabelleKrieger Fund, the Fund for Change, and the Bancroft Family Foundation for supportingthe work of the Environmental Maryland Research & Policy Center to promote offshorewind power.The authors bear responsibility for any factual errors. The views expressed in this reportare those of the authors and do not necessarily reflect the views of our funders or thosewho provided review.Copyright 2011, Environment Maryland Research & Policy CenterEnvironment Maryland Research & Policy Center is a 501(c)(3) organization. We arededicated to protecting our air, water and open spaces. We investigate problems, craftsolutions, educate the public and decision-makers, and help the public make their voicesheard in local, state and national debates over the quality of our environment and our lives.For more information about Environment Maryland Research & Policy Center or for ad-ditional copies of this report, please visit www.environmentmaryland.org/center.The United Steelworkers represents 1.2 million active and retired workers in NorthAmerica in a wide variety of industries in both the public and private sectors. In Maryland,it is the largest union in the manufacturing sector. USW represents Maryland workers inthe steel, cement, paper, energy, chemical and food industries, among others. For moreinformation about the United Steelworkers, please visit www.usw.org.Frontier Group conducts independent research and policy analysis to support a cleaner,healthier and more democratic society. Our mission is to inject accurate information andcompelling ideas into public policy debates at the local, state and federal levels. For moreinformation about Frontier Group, please visit www.frontiergroup.org.Cover photo: Zentilia, iStockphoto.comDesign & layout: Harriet Eckstein Graphic Design

Table of ContentsExecutive Summary 1Introduction 7Energy from Offshore Wind Will Benefit Maryland 8Maryland Is Dependent on Coal-Fired Power Plants 8Energy Imported from Other States Stresses Maryland’s Electrical Grid and Pollutes Regional Air 9Offshore Wind Is a Powerful Solutionto Maryland’s Energy Challenges 11Clean Power 11Immense Potential 12Brains, Ships and Steel: What It Will Taketo Build Offshore Wind in Maryland 14A Large-Scale Opportunity 14The Ingredients for Offshore Wind 15Wind Turbines 17Foundations 19Connecting Offshore Wind to the Grid 21Shipping and Logistics 25Permitting, Legal and Management Work 27Ongoing Operation and Maintenance 29Maryland’s Capacity to Win Offshore Wind Business 30Maryland Firms and Workers Are Positioned to Benefit from Offshore Wind Development 30Building a Project or Building an Industry? 34The Environmental Case for Building a Local Offshore Wind Industry 35Policy Recommendations 36Notes 37

Executive SummaryO ffshore wind energy presents a tre- To reap the benefits of offshore wind, mendous environmental and eco- Maryland should provide certainty for de- nomic opportunity for Maryland. velopers of offshore wind parks by ensur- Environmentally, Maryland’s vast off- ing that the power they produce will find ashore wind resource can reduce our de- market in the state.pendence on coal-fired power plants, curb Maryland’s dependence on fossil fu-global warming pollution, and help the els threatens our environment. Electricstate meet its renewable energy require- power plants produce 38 percent of Mary-ments. Economically, offshore wind devel- land’s emissions of carbon dioxide—theopment can stabilize electricity prices and leading global warming pollutant. Powerhas the potential to create thousands of plants are also a major source of nitrogenjobs in dozens of fields—helping to sustain oxides, a key component of smog, and sul-existing Maryland firms and encouraging fur dioxide, which forms fine particles inthe creation of brand-new industries. the air, contributing to lung disease and Maryland already has more than heart attacks.150 businesses—employing more than Maryland is blessed with a tremen-7,000 workers—that can participate dous offshore wind resource that canin the manufacturing of components meet a significant share of the state’sfor offshore wind parks. Another 980 electricity needs. The wind energy po-businesses—employing more than tential in shallow-water areas off Mary-20,000 workers—have the potential land’s coast is capable of producing theto play supporting roles in the con- equivalent of two-thirds of the amountstruction of offshore wind energy. A of electricity we use. (See Figure ES-1.)commitment to offshore wind develop- Maryland has even greater potential toment could also result in new businesses generate wind power in deeper offshoresetting up shop in Maryland in fields waters and can benefit from offshore windranging from science and engineering to development in the waters of neighboringconstruction and manufacturing. states. Executive Summary 1

Figure ES-1. Maryland Offshore Wind Potential Compared with Current Electricity Demand (Source: University of Delaware Center for Carbon-Free Power Integration) 200,000 180,000 160,000 Electricity (Gigawatt-hours) 140,000 120,000 Water depth 100-1000 meters 100,000 50-100 meters 80,000 35-50 meters 60,000 0-35 meters 40,000 20,000 0 Offshore wind Current MD generation potential electricity demand Offshore wind parks require hun- Foundations dreds of workers in dozens of fields and create a wide variety of economic • The foundations that hold offshore opportunities for Maryland. wind turbines to the seabed require large quantities of steel—which Turbines could conceivably be manufactured in Maryland and fabricated locally. • Wind turbines represent about half Foundations for the Cape Wind the cost of an offshore wind park. development in Massachusetts, Offshore wind turbines are currently for example, will require 50,000 built abroad, but strong and consis- tons of steel plate—believed to tent demand for offshore wind power be the largest steel plate order in in the Mid-Atlantic could lure tur- the U.S. in a decade—and will be bine manufacturers to the region—as fabricated by a local firm, creating has already occurred with the land- 100 manufacturing jobs in New based wind turbine industry in the England. United States. Maryland already has more than 150 firms, employing at • Maryland has the potential to pro- least 7,000 workers, in industries that duce the steel for offshore wind could participate in the manufacture foundations locally. The Sparrows of components for wind turbines. Point steel mill, for example, could2 Catching the Wind

compete for the large steel orders Permitting, legal and environmental work that would result from offshore wind development. • Offshore wind development has already begun to create opportunitiesCables and electrical infrastructure for white collar workers in fields such as project management, finance, law,• Connecting offshore wind parks to engineering and earth sciences. the grid will require the efforts of skilled electrical workers, excavators, Ongoing operations and maintenance marine pilots and other workers. Creating a strong, regional demand • Even after construction is complete, for submarine cables could lure skilled maintenance and electrical international cable manufacturers workers will be required to keep to set up shop in the Mid-Atlantic offshore wind parks up and run- region. These manufacturers tend to ning. The Cape Wind development locate in port cities, where cables can in Massachusetts, for example, will be readily loaded onto ships. create approximately 110 permanent jobs in operations and maintenance,• Recent submarine cable projects in which could last for 20 years or more. New York Harbor and San Francisco Bay involved the hiring of numerous Offshore wind development has the local subcontractors to build potential to create large numbers of on-shore electrical substations new jobs in a variety of industries. and lay cable. • The state of Maryland estimates thatShipping and logistics construction of a 500 MW wind park could create 2,000 manufacturing• The construction of offshore wind and construction jobs over a five-year turbines requires a large amount period, along with 400 permanent of activity on land. The Port of supply and maintenance jobs. Stud- Baltimore operates around the ies conducted by other Atlantic coast clock, is accessible via a deepwater states have identified similar job-cre- channel, and has ample open space ation potential. to store and assemble wind turbine components. It is well equipped to Maryland already has many firms compete for business with other and workers capable of participating in Mid-Atlantic ports, given some offshore wind development. current methods of transporting and assembling offshore turbines. • According to data compiled by the U.S. Census Bureau and previous• The need to deliver workers studies of the wind industry, there and materials to offshore wind are more than 150 Maryland firms, installations will also create business employing more than 7,000 Maryland for operators of smaller craft workers, that are engaged in industries operating out of both the Port of that could participate in the manu- Baltimore and other Maryland facturing of components for offshore ports. wind parks. (See Table ES-1.) Executive Summary 3

• There are approximately another To encourage the development of 980 firms, employing more than offshore wind power—with its strong 20,000 workers, that are engaged in environmental and economic benefits industries that could provide support for Maryland: for the installation of offshore wind parks. (See Table ES-2.) • The state and federal governments Table ES-1. Employment in Industries with the Potential to Take Part in Wind Turbine Manufacturing Employer sales, shipments, 2007 Number of receipts, revenue, Annual Number NAICS employer or business payroll of paid code Industry description establishments done ($1,000) ($1,000) employees 332420 Metal tank (heavy gauge) manufacturing 6 $53,790 $5,712 228 325520 Adhesive manufacturing 7 $286,531 $28,546 471 326150 Urethane and other foam product manufacturing 3 D D 250-499 326199 All other plastics product manufacturing 58 $797,482 $140,062 3,461 332312 Fabricated structural metal manufacturing 26 $153,426 $36,933 741 333613 Mechanical power transmission equipment manufacturing 3 D D 250-499 334418 Printed circuit assembly (electronic assembly) manufacturing 8 $31,582 $9,558 163 334513 Industrial process variable instruments 5 D $15,718 197 334519 Other measuring and controlling device manufacturing 17 D $24,379 443 335313 Switchgear and switchboard apparatus manufacturing 6 $90,527 $17,962 488 335314 Relay and industrial control manufacturing 8 $19,507 $5,264 100-249 335929 Other communication and energy wire manufacturing 3 D D 250-499 335999 Miscellaneous electrical equipment manufacturing 6 D D 100-249 TOTAL 156 >$1,432,845 >$284,134 >7,142 (D= Withheld to avoid disclosing data for individual companies)4 Catching the Wind

should set bold goals for offshore wind projects in federal waters, while wind development in the Atlantic, in maintaining a high level of environ- order to provide clear leadership and mental protection. vision regarding the important role of offshore wind in America’s energy • The Maryland Public Service Com- future and to demonstrate that it is a mission should solicit proposals for a high priority. wind park to be built off Maryland’s coast. The PSC should then direct• The U.S. Department of the Interior utilities to sign long-term power sup- should improve and streamline cur- ply contracts with the wind developer rent siting regulations for offshore with the best proposal.Table ES-2. Employment in Industries with Potential to Supply Raw Materials or Aidin Installation of Offshore Wind Parks Employer sales, shipments, 2007 Number of receipts, revenue, Annual Number NAICS employer or business payroll of paid code Industry description establishments done ($1,000) ($1,000) employees 22112 Electric power transmission, control, and distribution 60 Q D 5,000-9,999 237130 Power and communication line and related structures construction 128 $481,101 $127,570 2,887 237310 Highway, street, and bridge construction 212 $1,495,639 $319,854 6,862 48311 Deep sea, coastal, and Great Lakes water transportation 22 D D 250-499 484121 General freight trucking, long-distance, truckload 245 $593,831 $162,536 3,703 4883 Support activities for water transportation 47 D D 1,000-2,499 213112 Support activities for oil and gas operations 8 D $4,660 103 336611 Ship building and repairing 22 D $11,420 263 541620 Environmental consulting services 234 $341,537 $125,269 2,063 331111 Iron and steel mills 3 D D 1,000-2,499 TOTAL 981 >$2,912,108 $751,309 >23,131(D= Withheld to avoid disclosing data for individual companies, Q=Revenue not collected atthis level of detail for multi-establishment firms) Executive Summary 5

• The federal government should use term power purchase agreement with its buying power to facilitate the an offshore wind developer covering financing of offshore wind. The electricity purchases for military in- government should negotiate a long- stallations and other federal facilities.6 Catching the Wind

IntroductionM aryland’s environmental health the potential for new economic prosper- and our economic prosperity are ity for Maryland. The construction of inexorably linked. offshore wind parks requires skilled labor, Our state’s dependence on pollut- raw materials, and expertise—resourcesing sources of energy such as electricity that Maryland has in abundance. Harness-from coal-fired power plants jeopardizes ing those resources can create employmentthe health of our people and contributes for thousands of Marylanders—all work-to global warming, which is expected to ing toward the noble purpose of breakingbring a rise in sea level that threatens the our state’s dependence on fossil fuels, oncetreasured ecosystems and coastal commu- and for all.nities of the Chesapeake Bay. Maryland and our neighbors in the At the same time, the increasing de- mid-Atlantic region are latecomers to themand for solutions to our environmen- development of offshore wind. Over thetal challenges creates the potential for past two decades, nations such as Denmarknew economic opportunity—particu- have seized the initiative, building largelarly in developing the skills and tech- numbers of offshore wind turbines and, innologies to harness our vast resources the process, developing the expertise andof clean energy. home-grown manufacturing capability Nowhere do the environmental and that now make them global leaders in theeconomic benefits of clean energy inter- offshore wind industry.sect in Maryland so well as they do in the Now it is our turn. By laying out awaters off the state’s Atlantic coast. There, pathway toward development of Mary-strong and reliable winds provide a plenti- land’s offshore wind resources, we canful resource that Maryland can use to re- put Maryland on a path toward greaterplace fossil fuels. environmental sustainability and eco- Offshore wind development also creates nomic prosperity. Introduction 7

Energy from Offshore Wind Will Benefit Maryland O ffshore wind is a potentially power- Electricity consumption is the state’s ful solution to Maryland’s energy leading source of global warming pollution. problems. Currently, coal-fired The use of electric power in Maryland rep- power plants pollute Maryland’s air and resents 38 percent of the state’s total emis- transmission lines are becoming increas- sions of global warming pollution.2 ingly stressed as they import electricity Within the state’s borders, coal-fired (often generated from coal) from other power plants stand out as the leading con- states. Offshore wind power can address tributors to global warming from power many of these problems—supplying the generation. Maryland’s coal-fired power state with ample amounts of clean energy, plants produce 92 percent of carbon di- and enabling the state to reach its renew- oxide emissions from power generation in able energy and global warming pollution Maryland, despite the fact that those plants reduction requirements. produce only 55 percent of the power generated in the state.3 Coal-fired power plants also contribute to air pollution that threatens the health of Marylanders and our environ- Maryland Is Dependent on ment, including: Coal-Fired Power Plants • Sulfur dioxide emissions, which More than half of the electricity gener- form fine soot particles in the atmo- ated in Maryland comes from coal—a key sphere. When inhaled, these particles source of pollution linked to health prob- become lodged deep in the lungs lems and global warming. (See Figure 1.) where they cause a variety of health This figure understates Maryland’s de- problems, including asthma, bron- pendence on coal, since the state imports chitis, lung cancer and heart attacks.4 a large share of its electricity from neigh- Soot pollution from power plants is boring states that are highly dependent on responsible for significant harm to coal for electricity generation. public health in Maryland.58 Catching the Wind

Figure 1. Energy Sources for Electricity Generation in Maryland, 20091 Natural and Biomass and Other Gas Hydroelectric Other 5% 5% 1% Petroleum 1% Coal 55% Nuclear 33%• Emissions of nitrogen dioxide, All this power must travel many miles one of the primary ingredients in over Maryland transmission lines, putting smog. Smog makes lung tissues more increasing strain on the electrical grid. sensitive to allergens and less able to The U.S. Department of Energy has des- ward off infections.6 It scars airway ignated both the Baltimore/Washington tissues.7 Children exposed to smog metropolitan area and the Delmarva Pen- develop lungs with less flexibility and insula as “Critical Congestion Areas,” be- capacity than normal. During high cause the transmission lines are extremely smog days, otherwise healthy people overcrowded and nearing inadequacy.11 If who exercise can’t breathe normally.8 energy demand increases over the coming Over time, smog exposure can lead to years, more and more electricity will have asthma, bronchitis, emphysema and to come from outside the state, further other respiratory problems.9 stressing the transmission lines. The imported electricity—largely brought in from states such as West Vir- ginia and Pennsylvania—also comes from coal. Because of this, electricity consump-Energy Imported from Other tion in Maryland contributes to the release of health-threatening pollutants andStates Stresses Maryland’s global warming pollution produced out ofElectrical Grid and Pollutes state. Dependence on power imported fromRegional Air other states and generated by fossil fuelsUtilities satisfy Maryland’s electricity de- also leaves Maryland vulnerable to themand by purchasing energy from neigh- impact of wildly volatile fossil fuel prices.boring states. In 2008, Maryland imported Since the beginning of 2008, the price toroughly one-quarter of its electricity from Maryland power plants of natural gas haselsewhere.10 varied by a factor of three, while the price Energy from Offshore Wind Will Benefit Maryland 9

of coal has varied by nearly a factor of tial to address many of Maryland’s biggest two.12 These variations in fossil fuel prices energy challenges—curbing emissions wind up affecting consumers’ utility bills, of pollution that threaten Marylanders’ as do the “congestion charges” incurred health and the climate, meeting the state’s by utilities—and passed along to ratepay- goals for generation of home-grown re- ers—for importing electricity along con- newable energy, and alleviating the need gested transmission lines. for electricity imports from neighboring Offshore wind energy has the poten- states.10 Catching the Wind

Offshore Wind Is a Powerful Solution to Maryland’s Energy ChallengesM aryland has tremendous potential Compared to traditional coal- and natu- to generate clean, renewable elec- ral gas-fired power plants, offshore wind tricity from the winds blowing off power has effectively zero emissions.our coast. Taking advantage of Maryland’s According to an analysis by Spanish re-offshore wind resources can help the state searchers, the energy spent in building anclean up our air, meet our requirements offshore wind park is “paid back” in en-for renewable energy development and ergy from the wind park in less than sixreducing global warming pollution, and months, and the global warming emissionsstabilize electricity prices. produced in building a wind park are re- paid in less than three months.13 A similar analysis of a theoretical offshore wind park off the coast of Jacksonville, Florida, estimated that the wind park would produce 96 percent less global warming pollutionClean Power over its lifespan than a natural gas com-Offshore wind can help clean Maryland’s bined cycle power plant and 98 to 99 per-air and improve public health. By displac- cent less global warming pollution than aing dirtier power sources, offshore wind coal-fired power plant.14can help prevent emissions of pollutants Wind power can go a long way in en-that form soot and smog, two serious pub- abling Maryland to meet its renewablelic health threats. energy requirements. Under Maryland’s Unlike coal-fired power plants, off- renewable electricity standard, 20 percentshore wind turbines produce no emissions of the state’s electricity supply must comeof smog, soot or mercury. Even when the from renewable sources of energy—in-entire life cycle of wind energy is con- cluding wind, solar, biomass, geother-sidered—including pollution related to mal, ocean, and low-impact hydroelectricconstruction of the turbines themselves— power—by 2022.15 Offshore wind is oneemissions are far lower than comparably of Maryland’s largest renewable energysized fossil fuel-fired power plants. resources. One large offshore wind park Offshore Wind Is a Powerful Solution 11

One large offshore wind park (600 MW) would generate 3 percent of Maryland’s electricity, putting Maryland (600 MW) would generate more than a seventh of the way towards the 2022 renewable energy goal.16 3 percent of Maryland’s elec- Wind power can also go a long way in enabling Maryland to meet its cap on tricity, putting Maryland more global warming pollution. In an effort to do our share to limit the severity of global than a seventh of the way warming, Maryland state leaders have committed to reduce global warming pol- towards the 2022 renewable lution by 25 percent below 2006 levels by energy goal. 2020.17 Among the many actions that will be required to meet this target, Maryland must reduce emissions of global warming pollution from existing power plants and shift its electricity system toward sources of energy that do not produce carbon dioxide, such as offshore wind. Immense Potential Maryland has tremendous potential to generate clean, renewable electricity from the winds blowing off its coast. Not all of that potential is likely to be real- ized—competing demands such as the protection of critical ecosystems and wildlife, the preservation of navigation- al safety, and the continuation of other ocean-based activities will mean that certain areas of Maryland’s offshore waters will remain off-limits to wind power. Still, tapping only a portion of Maryland’s immense wind energy potential could result in the generation of large amounts of clean, renewable energy. A 2010 study by researchers at the University of Delaware estimated that the shallow waters (less than 35 meters) off Maryland’s coast are capable of hosting 14,600 megawatts of wind power capac- Maryland and the Atlantic coast have tremendous potential for ity, capable of supplying 43,600 gigawatt- offshore wind development, following the lead of nations such as hours of electricity each year—equivalent the United Kingdom, which have developed strong offshore wind to roughly two-thirds of the electricity industries. Credit: Siemens that Maryland consumes in a year. Count-12 Catching the Wind

Figure 2. Maryland Offshore Wind Potential Compared with Current ElectricityDemand20 200,000 180,000 160,000 Electricity (Gigawatt-hours) 140,000 120,000 Water depth 100-1000 meters 100,000 50-100 meters 80,000 35-50 meters 60,000 0-35 meters 40,000 20,000 0 Offshore wind Current MD generation potential electricity demanding the potential offshore wind resource as the electricity currently used in coastalin deeper waters, Maryland could host states from Massachusetts to North Caro-nearly 60,000 megawatts of wind power lina—plus an amount equivalent to the oilcapacity; enough to generate 179,000 and natural gas used by the region’s mo-gigawatt-hours of electricity each year.18 tor vehicles, homes and industry.21 Again,By contrast, Maryland currently consumes it is unlikely that the United States can orroughly 63,300 gigawatt-hours of electric- should develop this entire resource, but tak-ity each year.19 ing advantage of only a fraction of it could There is even greater potential for off- deliver large dividends in weaning the na-shore wind development beyond Maryland tion from its dependence on fossil fuels.waters. The entire Mid-Atlantic Bight (the Offshore wind energy provides the op-portion of the continental shelf alongside portunity to repower Maryland’s economythe Mid-Atlantic coast) is fertile territory with clean energy. Taking advantage offor offshore wind development. According even part of that potential, however, willto a 2007 study, the offshore wind resourc- require the development of new industrieses available in areas of the Mid-Atlantic in the state and in the region—creating theBight less than 100 meters in depth have potential for thousands of new jobs, boththe potential to produce as much energy in existing companies and in new ones. Offshore Wind Is a Powerful Solution 13

Brains, Ships and Steel: What It Will Take to Build Offshore Wind in Maryland O ffshore wind parks are high-tech fa- of power, and develop turbine designs that cilities requiring the use of massive are optimized to produce clean energy in machinery working in often harsh the specific conditions of Mid-Atlantic offshore conditions. The task of building waters. an offshore wind park requires the in- In this report, we seek to describe the volvement of thousands of workers—often offshore wind supply chain in detail and with specialized skills—working at sea, on identify opportunities for Maryland busi- land, in manufacturing facilities, and in nesses and workers to take part. back offices. The entire string of businesses that are involved in making an offshore wind park a reality is called the supply chain. Nations such as Denmark that have been building offshore wind parks for more than a A Large-Scale Opportunity decade have developed a base of expertise Offshore wind development is such a and well-developed supporting industries. large-scale opportunity that its magnitude Maryland and other Mid-Atlantic states can be difficult to comprehend. The Cape have no such experience—but there are Wind project in Massachusetts—which hundreds of firms and thousands of work- involves the proposed installation of 130 ers with the capabilities and skills to take turbines capable of generating more than part in an offshore wind economy. 420 MW of electricity—will likely be dif- Taking advantage of the economic op- ferent in some ways than a new offshore portunity presented by offshore wind also wind park in Maryland, but it nonetheless makes environmental sense. By sourcing provides a good example of the scale of the offshore wind components locally—rather endeavor, and the economic opportunities than from abroad—we can reduce emis- that result. sions from transportation, reduce the cost Construction of Cape Wind in the form of offshore wind relative to dirty sources proposed by the developer will require:14 Catching the Wind

• Manufacture and installation of 130 tions with greater experience in offshore offshore wind turbines, each with wind. As more projects are developed and hundreds of components. a sustainable and strong offshore wind industry emerges in the Mid-Atlantic, many• Manufacture and installation of a of those components are likely to be pro- foundation for each of those turbines, duced domestically—adding to the job requiring the purchase and fabrica- creation impact. tion of 50,000 tons of steel plate— believed to be the largest steel plate order in the United States in at least the last decade.22• Manufacture and installation of 67 The Ingredients for miles of underwater electrical cable Offshore Wind at the wind park itself, plus another The construction of an offshore wind park 50 miles of high-voltage cable to link is a vast, complex endeavor, involving work- the wind park to the Massachusetts ers from dozens of industries—everything electrical grid.23 from basic manufacturing to finance. In this report, we break down the off-• Construction of an offshore electrical shore wind supply chain into six basic substation, as well as connections to categories:26 the on-shore electrical grid. • Turbines – Wind turbines are the• Construction of a new port terminal most visible and technologically com- in New Bedford, Mass., for staging plex parts of any offshore wind instal- and on-shore assembly of wind tur- lation. Each wind turbine contains bines. The port project is expected to hundreds of mechanical components, create 400 person-years of employ- potentially sourced from a variety of ment over a two-year period.24 vendors. Assembly and installation of Cape • Foundations – Foundations are theWind is projected to create 1,700 person- physical structures that affix windyears of employment, along with an ad- turbines to the seafloor. The produc-ditional 110 permanent jobs in operations tion of foundations requires the useand maintenance.25 of vast amounts of steel, with the The Cape Wind example, however, ex- large, heavy foundations typicallyposes just the tip of the iceberg for the po- fabricated in close proximity to thetential economic impact of offshore wind. offshore wind park.First, Maryland is considering a larger off-shore wind park—up to 600 MW—than • Electrical Infrastructure – Sub-the 420 MW Cape Wind development, marine electrical cables link windand has a great deal of additional offshore turbines with each other and with thewind potential that can be taken advantage on-shore electric grid. This segmentof in future years. of the supply chain includes cable Second, because Cape Wind is the first manufacturing and installation, anddevelopment of its kind in the United the construction of on-shore andStates, many key components—includ- off-shore electrical substations anding turbines—will be imported from na- conversion stations. Brains, Ships and Steel 15

• Shipping and Logistics – Offshore activity. Based on experience with offshore wind turbines are installed in difficult wind development in Europe, a recent and often harsh marine environ- University of Maryland study estimated ments, requiring special facilities and that the capital cost of offshore wind parks skills. Port operation, shipbuilding, (not including ongoing maintenance) can piloting of a variety of vessels, diving, be broken down as follows: and other forms of maritime work are important contributors to wind • Turbines, including transport and park construction. installation: 49% • Permitting, Legal and Manage- • Foundations: 21% ment Work – The development of a wind park involves a wide variety of • Construction of transformer station white collar labor as well – in finance, and main cable to the coast: 16% law, engineering, science, design and insurance. • Design and project management: 6% • Ongoing Operations and Mainte- • Construction of internal electric grid nance – After a wind park is com- among turbines: 5% pleted, workers are needed to operate and maintain the facility. • Environmental analysis: 3% Each of these segments of the supply • Miscellaneous: less than 1%27 chain is an important source of economic Figure 3. Cost Breakdown of a Representative Offshore Wind Park (miscellaneous expenses not shown)28 Internal grid Environmental among analysis , 3% turbines , 5% Design and Turbines, project including management , transport and 6% installation, 49% Transformer station and main cable to coast, 16% Foundations, 21%16 Catching the Wind

More than half the cost of a wind park, Mid-Atlantic—creates the opportunity forin other words, is spent on goods and ser- the development of offshore wind manu-vices other than the turbine itself—creat- facturing capability in the region. Devel-ing economic opportunities in many sec- oping local wind turbine manufacturingtors of Maryland’s economy. capability in Maryland would ensure that the majority of Maryland’s investment in offshore wind would return to the state’s economy. In addition, regardless of where in the region turbines are built, MarylandWind Turbines firms would have the ability to compete to supply the dozens of components used in• Turbine assembly those turbines. A recent report by the United Steel-• Turbine component manufacturing workers, American Wind Energy Associa- tion and Blue-Green Alliance describes the• Support services rapid emergence of a domestic on-shore wind energy industry over the past decade. Wind turbines are the most visible and Between the end of 2004 and 2009, thetechnologically complex parts of any off- domestic content of U.S. wind turbinesshore wind installation. Offshore wind doubled from 25 percent to 50 percent,turbines are larger—sometimes much even as the number of turbines installedlarger—than their land-based counter- increased dramatically.29 (See Figure 4.)parts, but typically have shared similar According to the study, the heaviest anddesigns. That is beginning to change as most difficult-to-transport portions of theturbine manufacturers are beginning to wind turbine—first towers, then blades—design turbines specifically suited to off- were the first to be sourced domestically,shore wind energy production. followed by the final assembly of the na- The growing demand for offshore wind celle (the structure that sits atop the towerturbines worldwide—and potentially in the and contains the turbine’s electronics andFigure 4. Share of Domestic Content (by Value) in U.S.-Installed Wind Turbines30 Brains, Ships and Steel 17

Wind turbine blades are likely to be among the first components of offshore wind farms to be manufactured domestically because of their size and bulk. Above, workers fashion blades for land-based turbines at a factory in Grand Forks, North Dakota. Credit: flickr user Tuey. controls) and now, increasingly, the manu- to compete for the business of assembling facture of high-value electrical compo- wind turbines and manufacturing turbine nents for the nacelle.31 components. The offshore wind industry shares much in common with the burgeoning Rotors (Blades) land-based U.S. wind industry, includ- The manufacture of turbine rotors—or ing similar designs for turbines and many blades—is likely to be performed near components. However, offshore turbines offshore wind installation locations. Like are generally much larger than land-based foundations and towers, rotors are long turbines and require special protection and heavy—one 5-megawatt wind turbine from the harsh marine environment. As a currently in production, for example, has result, the offshore and land-based indus- rotor blades that are more than 200 feet tries are expected to diverge over time. long, greater than the length of two bas- The potential economic impact of off- ketball courts.32 shore wind turbine development in Mary- Megawatt-scale turbines require blades land follows much the same pattern as the that are long, low-density, and sturdy, onshore industry has followed over the a requirement best met by fiberglass or past decade. Firms in the state are very composite materials.33 Blades are manu- likely to compete for the job of building factured in specialized facilities capable of the foundations that root offshore wind casting long composite strips.34 turbines to the seabed, and have a chance In Massachusetts, site of the Cape Wind18 Catching the Wind

development, TPI Composites, Inc., a Nacelles are designed to produce largewind turbine blade manufacturer, has es- volumes of electricity under massive andtablished a new rotor testing and manu- variable loads from the turbines they sup-facturing facility in Fall River, creating ap- port. The machinery they contain, there-proximately 30 jobs. The company’s plans fore, is the most complex and high-tech ofinclude room for potential expansion of the wind turbine’s components. The gear-the facility in the future.35 States in the boxes, drive trains, and generators con-middle of America’s onshore wind heart- tained in nacelles are composed of dozensland—the flat, windy Great Plains—have or hundreds of individual components,seen blade manufacturing arrive in signifi- such as bearings, gears, and electricalcant volumes. For example, Siemens, one components, which transmit the energyof the world’s largest wind energy com- captured by turbines and convert it intopanies, was attracted by local demand to electricity useable by the grid.construct a rotor factory in Fort Madison, The supply chain for the individual na-Iowa, that now employs 600 workers.36 celle components has been the last element Maryland’s offshore wind resource dif- of the onshore wind industry to migratefers from the resource off the coast of Eu- to the United States.40 While large com-rope that existing offshore rotor designs ponents like blades, foundations, and as-are intended to harness.37 Wind speeds sembled nacelles are difficult to transport,along some portions of the Mid-Atlantic nacelle internals can be shipped relativelyBight, for example, are lower than those in easily, so factories that produce them arethe North Sea waters for which most off- likely to develop only once a wind indus-shore wind turbines have been designed. try has matured to the point of assuringSpecially designed blades will be needed if steady demand. The domestic onshoreturbines here are to operate as effectively wind industry has begun to reach thatas possible, and the logical place to manu- threshold, with several factories compos-facture them would be near the source of ing small, high value-added componentsdemand in the Mid-Atlantic. opening in the U.S. in 2009.41 Those factories have the potential to multiply theNacelles job creation potential of nacelle manufac-Nacelles are the components of a wind turing facilities by attracting further manu-turbine that connect the blades to the facturers to the area to supply the internaltower and contain the machinery through components.42which energy is harnessed and convertedto electricity. Nacelles are both large andcomplex; nacelles for megawatt-scale tur-bines weigh hundreds of tons; as muchas 400 to 430 tons for a 5 MW turbine.38 FoundationsNacelles contain the turbine’s gearbox (ifneeded), drive train, control systems, and • Steel manufacturinggenerator. Assembling nacelles out of their com- • Steel fabricationponent parts requires large amounts ofskilled labor. Siemens, for example, has The steel “monopile” foundationsconstructed a nacelle assembly plant in that are used to secure most shallow-wa-Hutchinson, Kansas, capable of producing ter offshore wind turbines to the seabed650 nacelles each year, which will employ are large, heavy, and extremely costly and400 workers at full capacity.39 cumbersome to transport. The monopile Brains, Ships and Steel 19

foundations for one offshore wind park off the U.S. in at least a decade to secure the the coast of Denmark, for example, weigh 50,000 tons of steel plate needed for the between 165 and 231 tons each.43 Mary- foundations.46 land foundations are likely to be heavier, Maryland has several firms that, like weighing as much as 300 tons.44 Because Mass Tank in Massachusetts, perform of their weight and size, the fabrication of steel fabrication work.47 In addition to offshore wind foundations is very likely primary fabrication work of shaping the to occur near the site of an offshore wind large, cylindrical foundations that support park. the turbines, local steel fabricators will be In the case of the Cape Wind develop- needed to perform secondary fabrication ment off Massachusetts, a local steel-tank of the “transition” pieces (the interface manufacturing firm, Mass Tank, was se- between the foundation and the tower) as lected to supply foundations for the 130 well as ladders, handrails and other metal wind turbines that make up the develop- pieces.48 ment. The firm, which is partnering with Perhaps the greatest opportunity present- a German company, EEW Group, will ed to Maryland, however, is the potential to build a new manufacturing facility for the supply steel to the growing offshore market foundations, adding between 100 and 350 throughout the Mid-Atlantic. Three-quar- jobs.45 The company will place what is be- ters of the cost of a turbine foundation is lieved to be the largest steel plate order in for raw materials, largely steel.49 Foundations are massive steel structures, weighing hundreds of tons, that root offshore wind turbines to the seafloor. Foundations are typically fabricated locally, given the cost and difficulty of transporting them long distances. Here, an offshore wind turbine in the United Kingdom is affixed to its foundation. Credit: Siemens20 Catching the Wind

The Sparrows Point steel mill in Bal- power produced by all the turbines intimore has long played an important role a wind park at an electrical service plat-in Maryland’s economy, dating back to the form—in essence, a power substation builtlate 19th century. Once the largest steel mill offshore. From the electrical service plat-in the world, the Sparrows Point mill has form, power is fed to underwater cablesexperienced a succession of setbacks over that carry electricity to the onshore grid.the last several decades. However, unlike There are two main options for gettingmany other U.S. steel mills that have shut electricity from a wind park to the grid. Thedown in recent decades, Sparrows Point first option is to connect each wind parkcontinues to operate. Sparrows Point directly to the electric grid by running al-could compete for the business of supply- ternating current (AC) transmission cablesing slab steel that could be used to supply from the wind park to a substation on land.a growing offshore wind market along the This is the system proposed to be used forU.S. Atlantic coast. the Cape Wind development in Massachu- setts and the NRG Bluewater Wind development off the coast of Delaware. Elec- tricity from the wind turbines is to flow through smaller AC cables to an electrical service platform in the midst of the windConnecting Offshore Wind park, where the voltage is increased (orto the Grid “stepped up”) to the voltage used in the underwater transmission line. The electricity• Cable manufacturing then flows through a series of high-voltage wires buried under the seabed and shore to• Cable laying a substation where the electricity is fed into the regional grid.50• Directional drilling The other possibility is to create a high- voltage direct current (HVDC) transmis-• Tug and small vessel piloting sion backbone that links offshore wind parks in Maryland with those in other• Diving mid-Atlantic states. Instead of each new wind park being responsible for making• Excavation, landscaping and paving its own connection to land, the wind parks would instead link to a major transmis-• Electrical substation construction sion line running parallel with the shore- and line work line, which is connected to the land-based transmission grid at a few pre-determined Offshore wind turbines generate elec- locations.tricity, but that electricity does no good Construction of an offshore transmis-without the cables, substations, and other sion backbone would make the process ofinfrastructure to feed that electricity into establishing each new offshore wind parkthe grid, which can deliver it to Maryland- significantly easier and less expensive, asers’ homes. those parks would merely need to connect Each offshore wind turbine generates to the backbone rather than stringing un-electricity independently—functioning as dersea cable all the way to shore. In addi-a small power plant. The first step in de- tion, such a backbone could utilize HVDClivering electricity from the turbines to cables, which lose less energy during long-Marylanders’ homes is to aggregate the distance transmission than AC networks. Brains, Ships and Steel 21

In late 2010, a consortium of inves- cable market if sufficient domestic demand tors proposed construction of the Atlantic were to develop. Wind Connection—an offshore transmis- There are currently no cable manufac- sion backbone that would run 350 miles turers in North America capable of man- off the East coast from Virginia to New ufacturing the submarine high-voltage Jersey. The $5 billion project would have cables that would be used in an aggressive the potential to support as much as 6,600 offshore wind build-out scenario.53 Lead- MW of offshore wind power in the mid- ers of the industry include companies such Atlantic and could be scaled up over time as Siemens (Germany), ABB (Sweden), to accommodate additional wind parks.51 Prysmian (Italy), Nexans (France), NKT The Atlantic Wind Connection pro- (Germany), and LS Cable (South Korea). posal provides a good idea of the types of The Swedish firm ABB, however, re- labor and skills required to connect off- cently announced plans to build a manu- shore wind parks to the electricity grid. facturing plant in Huntersville, North Construction of the complete system Carolina, (outside Charlotte) for land- would require: based high-voltage cable, citing the need for new transmission infrastructure to • The manufacture and laying of 1,200 connect renewable energy installations miles of copper cable—300 miles for and to bolster grid reliability.54 The new each of two parallel circuits. cable factory will employ approximately 100 people. The Italian firm Prysmi- • The manufacture and laying of many an—which supplied cable for the recent additional miles of lower-voltage AC Neptune submarine transmission project cable to connect each wind turbine to between New Jersey and Long Island and the centralized converter platform. the Trans Bay submarine cable project in California—has established an extra-high • The construction of 12 offshore voltage cable manufacturing facility in Ab- converter platforms. beville, South Carolina.55 Should a market for submarine cable • Construction of seven on-land emerge in the United States—such as connection stations.52 would be generated by an aggressive move toward offshore wind power in the At- Regardless of how electricity from wind lantic—these or other suppliers might be parks is carried to the shore, construction induced to build manufacturing capabil- of offshore transmission lines creates a va- ity along the Atlantic Coast. This is par- riety of job opportunities, some of which ticularly true if offshore wind installations may be available to Maryland workers. continue to expand around the globe, straining existing supplies of high-voltage submarine cables. Cable Manufacturing Atlantic coast cities would appear to There is recent evidence that international be good prospects for submarine cable cable manufacturers are willing and able to manufacturing. Coastal cities have proven establish manufacturing operations in the to be prime locations for submarine cable United States if there is a consistent and manufacturers, as they allow the finished large enough market for their products. product to be loaded directly onto ships. In addition, American firms that currently Many major international cable firms have manufacture other types of electrical cable established manufacturing facilities in could be persuaded to enter the submarine port cities—ABB, for example, currently22 Catching the Wind

manufactures sub-sea cables at a port fa- the surface takes place.61 On-shore cablecility in Sweden,56 Nexans at a port facility laying work for subsea cable connectionsin Norway,57 Prysmian at a port facility in can be extensive—in the case of the Nep-Arco Felice, Italy,58 NSW (a subsidiary of tune transmission project between NewU.S.-based General Cable) at a port city Jersey and Long Island, cables were laidin Germany,59 and LS Cable at a plant in underground along a 14-mile stretch ofDonghae, South Korea.60 Long Island’s Wantagh Parkway, requiring labor for trenching, burial of the cable,Cable Laying and restoration of the land following in-The laying of transmission cables to off- stallation.62shore wind parks involves work on land, In the transition zone between landin the coastal transition zone, in shallow and sea, horizontal directional drilling—awaters, and in deeper offshore waters. drilling technique often used in the oil and On land, cable installation follows typi- gas industry, as well as in the laying of var-cal procedures for the laying of under- ious types of cable—is used to minimizeground cable. Trenches are dug, conduits impacts on shoreline environments. Di-laid, and manholes installed along the rectional drilling equipment bores holesroute. Lengths of cable are then pulled in the ground through which conduits arethrough the conduits and spliced together inserted. The undersea cable is then fedat manhole locations. Finally, the trenches through the conduit and linked to the un-are refilled and repaving or restoration of derground cable.63Offshore electrical substations, such as the cylindrical structure above, aggregate the electricity gen-erated by the individual wind turbines, where it can be delivered via submarine cables to the shore.Credit: Siemens Brains, Ships and Steel 23

The installation of both the under- by barge, where installation would likely ground and transitional sections of the occur in a manner similar to the installa- project is well within the expertise of tion of the wind turbine foundation.66 The Maryland firms engaged in underground platform would contain electrical equip- cable installation and directional drilling, ment such as circuit breakers and trans- including firms engaged in trucking, exca- formers, as well as a helipad, boat dock, vation, landscaping, paving, and electrical emergency equipment, and temporary liv- contracting. ing quarters.67 In the marine environment, the laying Installation of the electric service plat- of underwater cable is often performed by form will require the use of barges and barges that feed cable into trenches dug cranes for transporting the components by an underwater jetplow. In deeper wa- of the platform and erecting it at sea, as ters, specialized cable-laying ships might well as the types of equipment—including be used. Regardless of the types of vessels pile drivers and jack-up barges—used for used, local labor will be required in the securing the offshore wind turbines to the form of tugs, support vessels and divers to seabed. help position equipment and rectify problems. Maryland already has some experience On-Shore Converter Stations with the economic impact of submarine and Substations cable installation. TE SubCom (formerly Connecting submarine cables to the grid Tyco Telecommunications) operates a also requires work on land. An AC con- large telecommunications cable facility nection requires work to connect the off- in Baltimore. The fleet operations center, shore transmission line directly to the grid which covers 20 acres and uses four deep- via an electrical substation. Use of a high- water berths, employs roughly 100 marine voltage DC system requires the construc- engineers, sailors and other workers.64 tion of an additional facility—a converter The center serves as one of several depots station—to convert DC power into the for the company’s global fleet of subma- AC power that can be transmitted through rine cable installation ships. the grid. Construction of converter stations for Electrical Service Platform HVDC systems relies on local labor pro- The electrical service platform for a wind vided by subcontractors. The California park is, at minimum, an offshore substa- Trans Bay cable project—which involved tion where electricity from wind turbines the laying of a submarine HVDC cable is aggregated and the voltage is “stepped under San Francisco Bay—for example, up” for injection into the underwater employed local union electrical workers in transmission wires that carry electricity to the construction of the converter stations, shore. Electrical service platforms some- which will require continuing employment times double as remote maintenance plat- beyond their initial operation.68Additional forms and can include helicopter landing local labor was required for pile driving pads, control rooms, emergency and res- and grading work.69 Local union labor was cue equipment and even temporary lodg- also involved in the construction of a con- ing.65 verter station at the end of the Neptune In the case of the Cape Wind develop- cable line in Sayreville, New Jersey.70 ment, the electrical service platform and Much of the work of constructing its supporting structure are to be fabri- land-based electrical facilities is typically cated on-shore and delivered to the site farmed out to local subcontractors. The24 Catching the Wind

land-based electrical work for the Nep- Maryland’s offshore waters hold tre-tune project, for example, required the in- mendous wind energy potential. But tak-volvement of 15 subcontractors.71 ing advantage of that potential means The location of the connections be- harnessing the skills and materials need-tween offshore wind turbines off the ed to work in a difficult and demandingMaryland coast and the region’s electrical ocean environment, as well as having thegrid have yet to be determined. The At- right on-shore facilities to act as a staginglantic Wind Connection proposal includes ground for offshore activities.the construction of a converter station at Maryland has an important potentialPiney Grove, Maryland, on the Eastern asset when it comes to serving as a ship-Shore, as well as a second station at Indian ping and logistics hub for offshore windRiver, Delaware, not far from the Mary- development: the Port of Baltimore. Butland border.72 the state—like others in the Mid-Atlan- tic region—will also need to develop new skills and capabilities to take full advantage of the promise of offshore wind.Shipping and Logistics Port Facilities Maryland has a major deepwater port, the• Shipbuilding Port of Baltimore, which is a potent economic engine for the region. A 2008 study• Port facilities and support services for the state of Maryland estimated that the port sustains roughly 50,000 jobs in• Servicing the Maryland economy.73Installation of offshore wind turbines requires the use of specialized ships—such as the jack-up bargepictured above—equipped with massive cranes. The three rotors of the wind turbine under construc-tion above can be seen on the far side of the jack-up ship. Credit: Siemens. Brains, Ships and Steel 25

Maryland would receive the greatest construction and capable of operating economic benefit if the Port of Baltimore round-the-clock, with access to pier facili- were to emerge as a major logistics, ship- ties on demand.78 ping and manufacturing hub for offshore One potential disadvantage of the Port wind energy in the mid-Atlantic region. of Baltimore is the need for ships to pass A study undertaken for the Port of Wilm- under the Chesapeake Bay Bridge, which ington, Delaware, found that basing two has a vertical clearance of 186 feet, on the turbine installation vessels out of a port way to the Atlantic Ocean. The height of would create 250 in-state jobs for the du- the bridge may limit the ability of jack- ration of the project.74 The availability of up barges with tall legs, as well as preas- adequate port facilities is also likely to be a sembled tower assemblies, to pass be- critical factor in decisions made by turbine tween Baltimore Harbor and the Atlantic manufacturers, fabricators of steel turbine Ocean. foundations, cable manufacturers and other firms about where to locate their facili- Support Services ties to serve the mid-Atlantic market. The task of assembling and installing wind The Port of Baltimore has several ad- turbines may be the most important one in vantages—and an important potential the development of an offshore wind park, disadvantage—in competing with nearby but there are many other potential jobs in ports such as Newport News, Virginia; supporting and facilitating offshore wind Wilmington, Delaware; and Paulsboro, installation—with work available both on New Jersey, for offshore wind. land and at sea. One advantage is the Port of Balti- Shipping needs for wind park construc- more’s status as a well-developed deep- tion begin even before construction starts. water port. The shipping channel in Bal- Sites need to be scouted and surveyed be- timore Harbor is sufficiently deep to ac- fore foundations or turbines can be sunk commodate the large delivery ships, jack- into the ground, which means that experts up barges and crane ships that will be need to visit the site repeatedly during needed to deliver and install the turbines preparations for construction. Once con- and foundations.75 Baltimore’s port is al- struction starts, workers need transporta- ready being improved to host the larger tion to and from the site. The best can- container ships that will reach the Atlan- didates to provide this transportation, in tic after Panama Canal improvements are both cases, are local fishermen and other completed in 2014, which should enable boat owners.79 While the Port of Balti- it to support the transport and construc- more is likely the only Maryland port with tion ships associated with laying steel the infrastructure to support turbine in- monopile foundations.76 stallation, smaller Maryland ports, such as The Port of Baltimore also appears to those in Cambridge and Ocean City, may have sufficient land area to serve as a stag- be in a position to provide some of these ing ground for offshore wind installation. charter boat services. Turbines are massive pieces of machinery, Ports also serve as a refueling, resupply and cannot be shipped whole to the con- and maintenance base for ships large and struction site from distant manufacturing small used in the installation of offshore facilities.77 This means that a nearby port wind parks. Many existing businesses—as is needed as a staging facility, where tur- well as new businesses—have the potential bine parts can be offloaded and partially to benefit from the increased port activity assembled. Ideal ports for wind turbine generated by offshore wind development, staging are also located near the site of including:26 Catching the Wind

• Chandlers, who supply ships with be built in the coming years to supply the food and nautical equipment. emerging market.83 Maryland formerly had a major ship-• Barge and tug operators. yard at Sparrows Point, but new ships have not been built at the facility since• Fuel suppliers. 1986.84 The shipyard may prove useful for vessel repair, but major shipbuilding will• Marine surveyors, who inspect ves- likely be carried out by existing shipyards sels for seaworthiness. elsewhere.• Shipyards.80 Increased port activity resulting fromoffshore wind development would likelybenefit these supporting port businesses Permitting, Legal andas well. Management WorkShipbuilding • Project development andThe construction of new, purpose-built managementinstallation ships for offshore wind de-velopment is certain to be located in the • Finance and insuranceUnited States, but unlikely to be locatedin Maryland. Shipbuilding represents a • Lawpotentially large economic opportuni-ty—unlike other aspects of the offshore • Civil, mechanical, structural andwind industry, which are global in scope, electrical engineeringfederal law essentially requires all vesselsused to install offshore wind turbines to • Earth sciencesbe U.S.-built vessels, crewed by Ameri-can sailors.81 Given the strong global de- Tapping Maryland’s offshore wind ener-mand for ships capable of installing off- gy potential will require massive amountsshore wind turbines, a growing market of blue-collar labor—in basic and high-for offshore wind would appear to be a tech manufacturing, construction trades,gift-wrapped economic opportunity for marine industries, and support services.U.S. shipbuilders. But as with any other major infrastructure Turbine installation requires special- project in today’s economy, offshore windized construction vessels with powerful also creates opportunities in white-collarcranes. The task is best performed by ships professions, from finance to engineering.custom-built for that purpose, but vessels These white collar tasks can make up ainitially built for other offshore construc- significant share of the cost of an offshoretion purposes—particularly the construc- wind park—roughly 12 percent, accord-tion of offshore oil and gas drilling plat- ing to the accounting firm Ernst & Young,forms—can also perform the task.82 Few, if based on experience in Europe.85any, of these vessels are currently based inMaryland, as the greatest demand for their Project Developmentservices is in the Gulf of Mexico. No ships The construction of an offshore wind parkcustom-built for offshore wind installation reflects the efforts of hundreds of people,yet exist in American waters, so they will organized in a complex web of investors, Brains, Ships and Steel 27

managers, contractors and sub-contrac- Engineers tors. At the center of that web is the proj- The construction and operation of off- ect developer. Project developers oversee shore wind facilities also creates work for the entire process of constructing an off- civil, structural and electrical engineers. shore wind park—bringing together the Electrical engineers are needed to design core project team, creating a coordinated offshore wind turbines, to plan for inte- strategy for development, and lining up gration of offshore wind power into the investors. electric grid and to design systems to in- Project developers typically maintain tegrate offshore wind into the state’s elec- local offices in areas near proposed wind tricity network. Civil and structural engi- developments. NRG Bluewater Wind, for neers are needed to assure the integrity of example, which is the developer of a pro- structures built both offshore and on land, posed wind park off the Delaware coast, as well as to design additions or changes has a local office in Berlin, Maryland, to the land-based infrastructure needed to which serves Maryland, Virginia and the support offshore wind development—for Carolinas.86 example, the construction of new roads to port facilities or the construction of larger Financial Planning and drydocks for ship construction. Management Offshore wind projects are billion dollar- Legal Assistance and Permitting plus endeavors, requiring the amassing of Offshore wind projects must navigate a capital from investors, constant vigilance complicated thicket of rules, regulations on project costs, and ongoing day-to-day and environmental review processes before fiscal management. construction can begin. As a result, offshore The early stages of an offshore wind wind developers require the services of law project might entail the securing of high- firms with expertise in these areas. risk capital to fund the initial studies of wind potential and early outreach efforts Earth Scientists to elected officials and potential vendors. Installation of offshore wind parks and Once the basic feasibility of the project transmission infrastructure requires de- has been proven, project developers must tailed and highly technical understanding raise additional capital from investors. of the geology and biology of the marine Prior to construction, developers must environment. obtain insurance coverage, evaluate com- Marine geoscientists survey the ocean peting bids for service, negotiate power floor to determine the appropriate loca- purchasing agreements with utilities, and tions for wind turbine foundations, trans- understand the tax implications of proj- mission lines and other offshore infrastruc- ect construction, including the potential ture. Marine biologists are often called in benefits of local, state and federal tax to consult on offshore wind projects to subsidies. During construction, finan- determine the degree to which new off- cial managers must engage in the day- shore structures or construction activities to-day fiscal management of the project will disrupt important ecosystems—and to while keeping an eye on project costs. make recommendations for how those im- Post construction, the firm (if it retains pacts might be reduced. Meteorologists are control of the wind park) must manage needed to assess the likely wind conditions continuing operations and maintenance and other weather conditions that will af- costs and interactions with the electricity fect the design and effectiveness of offshore marketplace. wind generation. Other technical and sci-28 Catching the Wind

entific tasks involved with the planning and the coordination of hundreds of workersconstruction of offshore wind parks include carrying out a wide variety of tasks. Butgeographic information system (GIS) map- the job creation opportunities providedping, evaluation of avian and bat impacts, by offshore wind development do not endand evaluation of potential conflicts with when the wind park is completed. Work-shipping, radar and recreation. ers are still needed to operate and maintain the offshore wind park and its associated electrical infrastructure over the 20 or more years that the wind park is in operation.Ongoing Operation and As noted earlier, the Cape Wind projectMaintenance off Massachusetts is anticipated to createThe construction of an offshore wind park approximately 110 permanent jobs in op-takes years of painstaking planning and erations and maintenance.87 Brains, Ships and Steel 29

Maryland’s Capacity to Win Offshore Wind Business T Maryland Firms and he development of Maryland’s offshore wind resources has the potential to create jobs throughout the econo- Workers Are Positioned to my—in manufacturing, in transportation, Benefit from Offshore Wind in construction, in electrical services, and in highly skilled positions from finance to Development engineering—even as it reduces Mary- Should offshore wind energy take hold in land’s dependence on sources of energy the Mid-Atlantic region, Maryland will be that foul our air and contribute to global positioned to reap the benefits—both in warming. terms of increased work for existing firms Maryland and other Mid-Atlantic states, and in the possibility of creating brand however, enter the offshore wind race sev- new industries. eral laps behind competitors in Europe. For more than a decade, firms working off the coasts of Denmark, Great Britain and Existing Maryland Industries and other nations haven’t just been debating Workers Can Participate in the role offshore wind parks can play in Offshore Wind Development their energy systems—they’ve been build- This report describes the many economic ing them, gaining priceless real-world opportunities that can result from off- expertise in the countless technical tasks shore wind development. Many Maryland needed to bring an offshore wind project firms already participate in industries that to fruition. will be in demand by companies seeking to If Maryland is to reap the economic—as build offshore wind parks. well as the environmental—advantages of Over the past decade, several analysts offshore wind, the state will need to work have compiled detailed assessments of alongside its Mid-Atlantic neighbors to the industrial sectors that are engaged in build a truly sustainable offshore wind in- wind turbine construction.88 Less study dustry for the region. has been given to the businesses that pro-30 Catching the Wind

vide supporting services for the installa- Wind Turbine and Tower Componentstion of offshore wind parks, and even less According to the U.S. Economic Censusto businesses that could benefit from the and previous studies of the wind turbinecreation of “indirect” jobs spurred by off- manufacturing industry, as of 2007, thereshore wind. were a minimum of 156 Maryland firmsTable 1. Employment in Industries with the Potential to Take Part in WindTurbine Manufacturing90 Employer sales, shipments, 2007 Number of receipts, revenue, Annual Number NAICS employer or business payroll of paid code Industry description establishments done ($1,000) ($1,000) employees 332420 Metal tank (heavy gauge) manufacturing 6 $53,790 $5,712 228 325520 Adhesive manufacturing 7 $286,531 $28,546 471 326150 Urethane and other foam product manufacturing 3 D D 250-499 326199 All other plastics product manufacturing 58 $797,482 $140,062 3,461 332312 Fabricated structural metal manufacturing 26 $153,426 $36,933 741 333613 Mechanical power transmission equipment manufacturing 3 D D 250-499 334418 Printed circuit assembly (electronic assembly) manufacturing 8 $31,582 $9,558 163 334513 Industrial process variable instruments 5 D $15,718 197 334519 Other measuring and controlling device manufacturing 17 D $24,379 443 335313 Switchgear and switchboard apparatus manufacturing 6 $90,527 $17,962 488 335314 Relay and industrial control manufacturing 8 $19,507 $5,264 100-249 335929 Other communication and energy wire manufacturing 3 D D 250-499 335999 Miscellaneous electrical equipment manufacturing 6 D D 100-249 TOTAL 156 >$1,432,845 >$284,134 >7,142(D= Withheld to avoid disclosing data for individual companies) Maryland’s Capacity to Win Offshore Wind Business 31

that work in industries that could supply Raw Materials and Support Services wind turbine and foundation components, As this report makes clear, the economic employing a minimum of 7,142 Maryland opportunities provided by offshore wind workers.89 (See Table 1.) Not every compa- extend well beyond turbine manufactur- ny within each industry may be equipped ing. Maryland has both the potential to to produce wind turbine components, but provide key raw materials for turbine or the list of industries presented provides a foundation manufacture—in the form broad assessment of the number of exist- of steel—as well as many of the support ing Maryland firms and workers that could services needed to make an offshore wind take part in manufacturing components park a reality. used in offshore wind parks. Table 2. Employment in Industries with Potential to Supply Raw Materials or Aid in Installation of Offshore Wind Parks92 Employer sales, shipments, 2007 Number of receipts, revenue, Annual Number NAICS employer or business payroll of paid code Industry description establishments done ($1,000) ($1,000) employees 22112 Electric power transmission, control, and distribution 60 Q D 5,000-9,999 237130 Power and communication line and related structures construction 128 $481,101 $127,570 2,887 237310 Highway, street, and bridge construction 212 $1,495,639 $319,854 6,862 48311 Deep sea, coastal, and Great Lakes water transportation 22 D D 250-499 484121 General freight trucking, long-distance, truckload 245 $593,831 $162,536 3,703 4883 Support activities for water transportation 47 D D 1,000-2,499 213112 Support activities for oil and gas operations 8 D $4,660 103 336611 Ship building and repairing 22 D $11,420 263 541620 Environmental consulting services 234 $341,537 $125,269 2,063 331111 Iron and steel mills 3 D D 1,000-2,499 TOTAL 981 >$2,912,108 $751,309 >23,131 (D= Withheld to avoid disclosing data for individual companies, Q=Revenue not collected at this level of detail for multi-establishment firms)32 Catching the Wind

There has been far less detailed study are part of the ripple effect of major proj-of the types of industries that have the ects such as offshore wind developments.potential to participate in raw materials Counting indirect and induced employ-production and installation activity. In this ment, the economic development impactsreport, we have reviewed the 2007 Eco- of offshore wind projects can be dramatic.nomic Census to identify a set of indus- Several Atlantic coast states have conduct-tries that might be eligible to participate in ed economic analyses demonstrating thatthese functions.91 We have purposely left strong, sustained investment in offshoreout a set of broad, white-collar employer wind can create significant new opportu-categories—such as law firms, financial nities for employment:firms, and insurance brokers—for whichoffshore wind would likely produce only a • The state of Maryland estimates thatsmall amount of business relative to their construction of a 500 MW wind parkoverall role in Maryland’s economy. would create approximately 2,000 This broader definition of the eco- manufacturing and constructionnomic opportunities presented by off- jobs over a five-year period, withshore wind suggests that an additional 981 an additional 400 ongoing supply,businesses—employing more than 22,000 operations and maintenance jobs forworkers—could participate in some way in the lifetime of the plant.93the provision of raw materials for offshorewind parks or in their installation. • A study in South Carolina projected that construction of a 480 MWIndirect and Induced Jobs wind park off the state’s coast couldOffshore wind development also has the create more than 1,800 full-timepotential to create jobs and economic op- jobs over the two-year period ofportunities in fields with seemingly little construction.94connection with wind energy. Vessels in-stalling wind turbines or submarine cables • A study in Virginia projected thatrequire fuel and supplies; crews building that state could create more thanoffshore wind turbines require food and 9,700 career-length jobs throughoften temporary lodging; and maintenance the steady construction of offshoreworkers require tools. The “indirect” jobs wind projects, equivalent to 160created by these support industries are an MW of offshore wind per year forimportant source of employment. 20 years.95 Offshore wind projects also create “in-duced” jobs—that is, jobs that are not re- • Similarly, in Maine, one studylated at all to the project itself, but rather projected that the state could createresult from the spending of those with 16,700 career-length jobs by devel-direct or indirect employment resulting oping 5,000 MW of offshore windfrom the offshore wind project. For ex- capacity over a 20-year period.96ample, installation workers might use themoney they earn from their work on an • In the Great Lakes area, a recentoffshore wind project to go to the movies Canadian study estimated that theor save up for a new car. Increased income province of Ontario could generatetax revenue might result in a local school more than 55,000 person-years ofhiring additional teachers or police offi- employment from construction ofcers to improve the community. These ad- 2,000 MW of offshore wind capacityditional jobs and economic opportunities over a 13-year period.97 Maryland’s Capacity to Win Offshore Wind Business 33

Building a Project or park—the Atlantic coast would need to be on a pace to build roughly one large-scale Building an Industry? wind park per year. As Maryland pursues offshore wind devel- It is likely that similar levels of demand opment, one key question will be whether will be necessary to spark the location of the region endeavors to build offshore other key wind-related manufacturing wind projects or to build an offshore wind industries—from cable manufacturing to industry. shipbuilding—and to catalyze the devel- A project-based approach to offshore opment of a skilled workforce with ex- wind would yield significant environmental perience in offshore wind development. benefits—offsetting the need for polluting Establishment of a robust offshore wind fossil fuel-fired electricity—and also cre- industry, for example, could make it once ate broad economic opportunity in a wide again worthwhile to produce plate steel at variety of fields for many businesses and the Sparrows Point steel mill, something workers. But a single wind park will not be the plant has not had the capacity to do enough to entice entrepreneurs and multi- since its plate mill closed in 1997.100 national corporations to create a new tur- Currently, wind parks are in develop- bine manufacturing facility. However, the ment or being seriously discussed in seven number of projects moving forward in the states—North Carolina, Virginia, Mary- region may be approaching the threshold land, Delaware, New Jersey, Rhode Island, needed for such an investment. and Massachusetts. By the time all of those A recent study conducted for the state wind parks are built, it is a real possibility of Virginia estimated that it would take that some of the first states will be discuss- sustained, annual demand for 100 to 150 ing expansions of their wind parks. This offshore turbines—equivalent to roughly could be enough total activity to make a 500 to 750 megawatts of wind generating turbine manufacturing facility viable. The capacity per year—to attract turbine man- United Kingdom, for example, is in the ufacturing to the region.99 In other words, midst of its third round of offshore wind to have a strong hope of luring manufactur- energy development, with the potential ing facilities for turbines—which account for as much as 32,000 megawatts of new for nearly half the cost of an offshore wind wind energy.101Table 3. Summary of Job Creation Estimates from Recent Studies of Offshore Wind Development98 Where How Many Jobs? Over What Time Period? For What Kind of Project? Maryland 2,000 manufacturing and five years for manufacturing 500 MW wind park construction jobs; 400 supply and construction; lifetime and maintenance jobs for supply and maintenance South Carolina 1,881 full-time jobs during two-year 480 MW wind park construction period Virginia 9,700 - 11,600 20-year period 160 MW of offshore wind career length jobs per year for 20 years Maine 16,700 career length jobs 20-year period 5,000 MW of offshore wind Ontario, Canada 55,000-62,000 person-years 13 years 2,000 MW of offshore wind of employment34 Catching the Wind

The Environmental Case for Laboratory projects that “offshore turbineBuilding a Local Offshore designs are likely to increasingly decouple from land-based technology.”104 As long asWind Industry the offshore wind energy market is domi-In recent years, environmentalists, entre- nated by other regions of the world, off-preneurs and organized labor have touted shore wind turbine designs are likely tothe job-creating potential of green indus- reflect the needs of those markets. Thetries. Luring clean energy entrepreneurs to development of a strong domestic mar-an area has often been promoted as a way ket for offshore wind power would enableto spark economic activity in the midst of manufacturers to develop designs that takea severe economic downturn. into account the Mid-Atlantic’s wind con- But in the case of offshore wind, the ditions, installation challenges, and envi-logic for building a local offshore wind ronmental and societal needs.hub goes well beyond job creation. Indeed, Third, local manufacturing reduces thedeveloping an offshore wind industry in emissions created in the transportation ofMaryland and the Mid-Atlantic region has large wind turbine components. A life-several environmental benefits. cycle analysis of a conceptual wind park First, building wind park components off the coast of Jacksonville, Florida, forlocally and developing a well-trained, ex- example, estimated that transporting windperienced local workforce will reduce the turbine components from Europe wouldcost of future wind park developments— account for more than one-tenth of themaking offshore wind more economically total global warming pollution producedcompetitive with fossil fuel power plants. in the entire life cycle of the wind park.105A study compiled for the state of Virginia Producing components locally can reduceestimates that local sourcing of wind tur- this important source of environmentalbines would reduce costs—improving the impacts.cost-competitiveness of offshore wind ver- Finally, creating a long-term path forsus fossil fuel-fired generation.102 More- offshore wind development will enableover, as local workers gain experience with the region to make smart investments inmanufacturing wind turbine components infrastructure right from the start. Con-and installing offshore wind parks, their struction of an offshore wind transmissionproductivity can be expected to increase, “backbone,” for example, is only worthagain reducing costs.103 considering if the region is prepared to Second, establishing a local offshore build sufficient offshore wind capacity towind hub would enable manufacturers to use it. Similarly, with a strong commit-tailor their turbine designs to the specific ment to offshore wind, state universities,conditions of the Mid-Atlantic coast. To workforce development agencies, and la-date, offshore wind turbines have largely bor unions can begin to develop programsshared design elements with on-shore to train Maryland workers to take part infarms, but the National Renewable Energy offshore wind development. Maryland’s Capacity to Win Offshore Wind Business 35

Policy Recommendations T o take advantage of the environmen- make sure that offshore wind parks tal and economic benefits of offshore do not have major impacts on wild- wind, Maryland and the United States life, shipping channels or military op- should make a strong commitment to the erations, but this can be done while development of wind energy off the mid- shortening a process that is currently Atlantic coast. unduly burdensome. Specifically: • The Maryland Public Service Com- • The state and federal governments mission should solicit proposals should set bold goals for offshore for a wind park to be built off of wind development in the Atlantic, in Maryland’s coast. The PSC should order to provide clear leadership and then direct utilities to sign long-term vision regarding the important role power supply contracts with the wind of offshore wind in America’s energy developer with the best proposal. future and to demonstrate that it is a high priority. • The federal government should use its buying power to facilitate the • The U.S. Department of the Interior financing of offshore wind. The should improve and streamline cur- government should negotiate a long rent siting regulations for offshore term power purchase agreement with wind projects in federal waters, while an offshore wind developer covering maintaining a high level of environ- electricity purchases for military mental protection. In so doing, they installations and other federal must establish careful procedures to facilities.36 Catching the Wind

Notes1 U.S. Department of Energy, Energy “Particulate Air Pollution and ChronicInformation Administration, Electric Respiratory Disease,” EnvironmentalPower Annual 2009—State Data Tables, Research 62: 7-13, 1993; D. Abbey et al.,1990—2009 Net Generation by State “Long-term Ambient Concentrations ofby Type of Producer by Energy Source Total Suspended Particles, Ozone, and(EIA-906, EIA-920, and EIA-923), 1 Sulfur Dioxide and Respiratory Symp-February 2011. toms in a Nonsmoking Population,” Ar- chives of Environmental Health 48: 33-46,2 Maryland Commission on Climate 1993; Joel Schwartz et al., “ParticulateChange, Climate Action Plan: Interim Re- Air Pollution and Hospital Emergencyport to the Governor and the Maryland Gen- Room Visits for Asthma in Seattle,”eral Assembly, 14 January 2008, 8. American Review of Respiratory Disease3 See note 1. 147: 826-831, 1993; J. Schwartz et al., “Acute Effects of Summer Air Pollution4 C. Pope et al., “Lung Cancer, Cardio- on Respiratory Symptom Reporting inpulmonary Mortality, and Long-Term Children,” American Journal of RespiratoryExposure to Fine Particulate Air Pollu- Critical Care Medicine 150: 1234-1242,tion,” Journal of the American Medical As- 1994.sociation 287: 1132-1141, 2002; A. Peterset al., “Increased Particulate Air Pollution 5 Abt Associates, Power Plant Emissions:and the Triggering of Myocardial Infarc- Particulate Matter-Related Health Damagestion,” Circulation 103: 2810-2815, 2001; and the Benefits of Alternative Emission Re-J. Samet et al., The United States Health duction Scenarios, June 2004.Effects Institute, The National Morbidity, 6 M. Gilmour et al., “Ozone-EnhancedMortality, and Air Pollution Study, Part II: Pulmonary Infection with StreptococcusMorbidity and Mortality from Air Pollu- Zooepidemicus in Mice: The Role of Alve-tion in the United States, Research Report olar Macrophage Function and CapsularNumber 94, June 2000; Joel Schwartz, Virulence Factors,” American Review of Notes 37

Respiratory Disease 147: 753-760; I. Mud- 13 E. Martinez et al., “Life-Cycle As- way and F. Kelley, “Ozone and the Lung: sessment of a Multi-Megawatt Wind A Sensitive Issue,” Molecular Aspects of Turbine,” Renewable Energy, 34: 667-673, Medicine 21: 1-48, 2000. 2009, doi:10.1016/j.renene.2008.05.020. 7 M. Lippman, “Health Effects of 14 Stacey L. Dolan, Life Cycle Assessment Ozone: A Critical Review,” Journal of and Energy Synthesis of a Theoretical Off- the Air Pollution Control Association 39: shore Wind Farm for Jacksonville, Florida, 672-695, 1989; I. Mudway and F. Kelley, 2007. “Ozone and the Lung: A Sensitive Issue,” Molecular Aspects of Medicine 21: 1-48, 2000. 15 North Carolina State University, Da- tabase of State Incentives for Renewables 8 W. McDonnell et al., “Pulmonary and Efficiency, Maryland Incentives for Effects of Ozone Exposure During Ex- Renewables and Efficiency: Renewable Energy ercise: Dose-Response Characteristics,” Portfolio Standard, 22 May 2008. Journal of Applied Physiology 5: 1345-1352, 1983. 16 “3 percent” from calculating the year- ly electricity generation (in megawatt- 9 R. McConnell et al., “Asthma in Ex- hours) from a 600 MW offshore wind ercising Children Exposed to Ozone: A farm with a capacity factor of 40 percent Cohort Study,” The Lancet 359: 386-391, (i.e. 600*24*365*.4), which is 2,102,400 2002. megawatt-hours, and dividing it by Mary- land’s retail sales electricity (in megawatt- 10 Based on difference between in-state hours), which is 63,325,777. 2,102,400 net generation and retail sales. U.S. De- divided by 63,325,777 is 3.3 percent. partment of Energy, Energy Information Retail electricity sales in Maryland were Administration, State Electricity Profiles obtained from: U.S. Department of En- 2008: Maryland, March 2010. ergy, Energy Information Administration, 11 Public Service Commission of Mary- State Electricity Profiles 2008: Maryland, land, Electric Supply Adequacy Report of March 2010. 2007, January 2007; Philip Rucker, “Pro- 17 Pamela Wood, “Green Activists posed High-Voltage Line Would Stretch Claim Success on Septics and Global Across Maryland,” Washington Post, 26 Warming,” Annapolis Capital, 14 April August 2007. 2009. 12 Natural gas from U.S. Department 18 Jeremy Firestone et al., University of of Energy, Energy Information Admin- Delaware Center for Carbon-Free Power istration, Monthly Maryland Natural Gas Integration, Maryland’s Offshore Wind Price Sold to Electric Power Companies, Power Potential, February 2010. 28 February 2011; coal prices based on Powder River coal from U.S. Department 19 U.S. Department of Energy, Energy of Energy, Energy Information Admin- Information Administration, State Elec- istration, Coal News and Markets Report, tricity Profiles 2008: Maryland, March 28 February 2011. Note that Maryland 2010. power plants have historically been fueled mainly with Appalachian coal, which has 20 See notes 18 and 19. experienced much greater price volatility 21 Willett Kempton et al., University in recent years. of Delaware and Stanford University,38 Catching the Wind

“Large CO2 Reductions via Offshore 32 Repower Systems, 5M: The 5-MegawattWind Power Matched to Inherent Stor- Power Plant with 126 Metre Rotor Diam-age in Energy End-Uses,” Geophysical eter, undated.Research Letters 34: L02817, February2007; doi:10.1029/2006GL028016. 33 D.A. Griffin and T.D. Ashwill, Al- ternative Composite Materials for Mega-22 Charis Anderson, “Area Firm Lands watt-Scale Wind Turbine Blades: DesignCape Wind Contract,” Standard-Times Considerations and Recommended Testing,(New Bedford, Mass.), 14 October 2010. presented at 2003 ASME Wind Energy Symposium, 2003. Downloaded from23 U.S. Bureau of Ocean Energy Man- windpower.sandia.gov/asme/AIAA-2003-agement, Regulation and Enforcement, 0696.pdf on 15 February 2011.Cape Wind: Summary of Plan Materials,downloaded from www.boemre.gov/off- 34 Siemens, Powerful Wind Turbine:shore/PDFs/CapeWindProjectPlanFil- Rotor Blades in One Cast, downloadeding2.pdf, 16 February 2011. from www.siemens.com/innovation/en/ news_events/innovationnews/innovation-24 Tetra Tech EC, Inc., Port and Infra- news_articles/e_21_ino_0728_2.htm onstructure Analysis for Offshore Wind Devel- 15 February 2011.opment, prepared for the MassachusettsClean Energy Center, February 2010. 35 Chris Barrett, “TPI Composites, Manufacturer of Wind Turbine Blades, to25 Ibid. Figures based on the representa- Open Fall River Facility,” Providence Busi-tive offshore wind energy installation in ness News, 25 August 2010.the study, which closely resembles theCape Wind development. 36 Kevin Hardy, “Company’s Arrival a Boon for Iowa City,” The Hutchinson26 This description of the offshore wind News, 2 December 2010.supply chain is adapted in part fromDouglas-Westwood, Ltd., POWER Off- 37 Patrick G. Hatcher et al., Virginiashore Wind Transnational Supply Chain Coastal Energy Research Consortium,Study, March 2006. Virginia Offshore Wind Studies, July 2007 to March 2010: Final Report, 20 April27 University of Maryland, Center for 2010.Integrative Environmental Research,Maryland Offshore Wind Development: 38 See note 24.Regulatory Environment, Potential Intercon-nection Points, Investment Model, and Select 39 Ken Stephens and John Green,Conflict Areas, October 2010. “Hutchinson Can Soar with Siemens Plant,” The Hutchinson News, 4 December28 Ibid. 2010.29 American Wind Energy Association, 40 See note 29.Blue-Green Alliance and United Steel-workers, Winds of Change: A Manufactur- 41 Ibid.ing Blueprint for the Wind Industry, June 42 See note 36.2010. 43 Aarsleff and Bilfinger Berger,30 Ibid. Project Information: Horns Rev 2 Offshore31 Ibid. Windfarm Monopile Foundations, Notes 39

downloaded from www.fz-bau.de/ 52 Ibid. C1257130005050D5/vwContentByKey/ W27KFKHE534VENSDE/$FILE/ 53 See note 37. Horns%20Rev%202_BB.pdf, 16 54 ABB, ABB to Build New Cable Fac- February 2011, figures converted from tory in U.S. (press release), 18 May 2010; metric tons. ABB, ABB Selects Huntersville, North Caro- 44 Steven Arabia, NRG Bluewater lina for New Cable Factory (press release), 9 Wind, personal communication, 27 Feb- September 2010. ruary 2011. 55 Prysmian Cables & Systems, Prysmian 45 See note 22. Opens First Extra High Voltage Power Cable Plant in North America (press release), 21 46 Ibid. October 2009. 47 As of 2007, the U.S. Economic Cen- 56 ABB, Cutting-Edge Power Cable from sus found that Maryland had 26 firms ABB (press release), 5 September 2009. engaged in the fabricated structural metal manufacturing industry and six firms 57 Nexans, Nexans Wins 100 Million engaged in metal tank manufacturing. Euros Power Cable Contract for the London Source: U.S. Census Bureau, 2007 Eco- Array Offshore Wind Farm Project (press nomic Census, Maryland: Table 4. Selected release), 14 December 2009. Statistics by Economic Sector, Sub-Sector, 58 Prysmian Cables & Systems, Prysmian Industry Group, NAICS Industry, and U.S. Secures 93 Million Euro Contract to Sup- Industry: 2007, downloaded from www. ply High Tech Power Cables for the Greater census.gov, 14 February 2011. Gabbard in UK, the Largest Offshore Wind 48 See note 37. Farm in the World (press release), 29 May 2008. 49 Ernst & Young, Cost of and Financial Support for Offshore Wind, prepared for 59 NSW, Inauguration of the New Subma- the Department of Energy and Climate rine Cable Plant of NSW (press release), 27 Change (U.K.), 27 April 2009. May 2009. 50 Commonwealth of Massachusetts 60 LS Cable, LS Cable’s First Submarine Energy Facilities Siting Board, Tentative Cable Factory in Donghae City, Korea (press Decision in the Matter of the Petition of Cape release), 30 April 2008. Wind Associates, LLC and Commonwealth 61 Nantucket Electric, Installation of Un- Electric Company d/b/a NSTAR Electric for derground and Submarine Electric Cables, Approval to Construct Two 115 kV Electric downloaded from www.nationalgridus. Transmission Lines, Docket No. EFSB02- com/nantucket/non_html/land_sea_ca- 2, 2 July 2004. ble.pdf, 16 February 2011. 51 U.S. Federal Energy Regulatory 62 Christopher Hocker, Richard M. Commission, Petition for a Declaratory Or- Kessel and John Duschang, “The LIPA der Requesting Incentive Rate Treatment and Connection,” Transmission & Distribution Acceptance of Rate of Return for the Atlantic World, August 2007. Wind Connection Companies Pursuant to Sec- tions 205 and 219 of the Federal Power Act 63 See note 61; also: ESS Group, Inc., and Order No. 679, 20 December 2010. M.G.L. Chapter 91 Waterways License40 Catching the Wind

Application: Submarine Cable Electric of the Port of Baltimore, prepared for theTransmission Facility, Lewis Bay and Nan- Maryland Port Administration, revised 28tucket Sound, prepared for Cape Wind As- January 2008.sociates, 6 October 2008. 74 A. Strauss-Wieder Inc. for Diamond64 Ronald J. Rapp, Tyco Electronics State Port Corporation, Port of Wilming-Subsea Communications LLC, Submarine ton Wind/Multi-Purpose Berth, Staging/As-Cables: Critical Infrastructure Supplier Per- sembly Site and Co-located Wind Turbinespective, Powerpoint presentation to the Manufacturing Facility Assessment, 22 Au-34th Annual Center for Oceans Law and gust 2010.Policy Conference, 20-21 May 2010. 75 Required depth based on note 24.65 Walter Musial and Bonnie Ram, Na-tional Renewable Energy Laboratory, 76 Michael Dresser, “Port of BaltimoreLarge-Scale Offshore Wind Power in the to Get Multi-Million Dollar Upgrade,”United States: Assessment of Opportunities Baltimore Sun, 20 November 2009.and Barriers, September 2010. 77 See note 24.66 U.S. Minerals Management Service, 78 Ibid.Cape Wind Energy Project: Final Environ-mental Impact Statement, January 2009, 79 Suzanne Pude and Gillian Garratt-Volume 1, E-2. Reed, “Beyond Power: Will Offshore Wind Development Bring Jobs?” The67 Ibid., Volume 1, 2-6. Working Waterfront, 3 March 2010.68 Paul Burton, San Francisco Building 80 See note 73.& Construction Trades Council, TransBay Cable Project Completed, downloaded 81 See note 65.from www.sfbuildingtradescouncil.org/content/view/414/65/, 16 February 2011. 82 See note 24.69 San Francisco Building & Construc- 83 Ibid.tion Trades Council, Trans Bay Cable 84 ShipbuildingHistory.com, Bethle-Project on Track to Provide Reliable Energy hem Steel Company, Sparrows Point, MD,to SF by 2010, downloaded from www. downloaded from shipbuildinghistory.sfbuildingtradescouncil.org/content/ com/history/shipyards/1major/inac-view/286/111/, 16 February 2011. tive/bethsparrowspoint.htm, 16 February70 Michael Acker, “New Converter Sta- 2011.tion Operational in Sayreville,” Suburban 85 See note 49.(Sayreville, NJ), 21 November 2007. 86 NRG Bluewater Wind, Contact Us,71 Conti, Projects: Siemens HVDC Con- downloaded from www.bluewaterwind.verter Station, downloaded from www. com/contact.htm, 16 February 2011.conticorp.com/project/neptune_hvdc_converter_station_sayreville_nj_hemp- 87 See note 24.stead_ny, 16 February 2011. 88 See, for example, George Sterzinger72 See note 51. and Matt Svrcek, Renewable Energy Policy Project, Wind Turbine Development:73 Martin Associates, The Economic Impacts Location of Manufacturing Activity, Notes 41

September 2004; L. Fingersh, M. Hand Turbine Design Cost and Scaling Model, and A. Laxson, National Renewable En- Technical Report, December 2006. ergy Laboratory, Wind Turbine Design Cost and Scaling Model, Technical Report, 92 Data on number of establishments December 2006. and employees in Maryland are from U.S. Census Bureau, 2007 Economic Census, 89 This estimate is based on employ- Maryland: Table 4. Selected Statistics by ment by Maryland firms operating in Economic Sector, Sub-Sector, Industry Group, industries identified by previous studies NAICS Industry, and U.S. Industry: 2007, as potentially taking part in the manufac- downloaded from www.census.gov, 14 turing of components for wind turbines. February 2011. Sources for North American Industry Classification System (NAICS) codes of 93 Maryland Energy Administration, industries potentially able to take part in Maryland Offshore Wind Energy Act of wind turbine manufacturing are from two 2011: Facts and Figures, downloaded from sources: Jon Chiappe, Oklahoma Depart- www.governor.maryland.gov/documents/ ment of Commerce, Wind Component offshorewindfactsheet.pdf, 1 March 2011. Manufacturing Industry, 30 September 94 Roger J. Flynn and Robert T. Carey, 2008; and L. Fingersh, M. Hand and Strom Thurmond Institute of Govern- A. Laxson, National Renewable Energy ment and Public Affairs, Clemson Uni- Laboratory, Wind Turbine Design Cost and versity, The Potential Economic Impact of an Scaling Model, Technical Report, December Off-shore Wind Farm to the State of South 2006. Data on the number of establish- Carolina, February 2007. ments and employees in Maryland are from U.S. Census Bureau, 2007 Economic 95 See note 37. Census, Maryland: Table 4. Selected Statis- tics by Economic Sector, Sub-Sector, Industry 96 Ocean Energy Task Force (Maine), Group, NAICS Industry, and U.S. Industry: Final Report of the Ocean Energy Task Force 2007, downloaded from www.census.gov, to Governor John E. Baldacci, December 14 February 2011. The more detailed 2009. NAICS code descriptions in Fingersh 97 Len Coad and Pedro Antunes, Confer- et al. were shortened to 6-digit NAICS ence Board of Canada, Employment and codes, which is the most detailed level Economic Impacts of Ontario’s Future Offshore of description provided in the Economic Wind Power Industry, December 2010. Census. One category was added to the list of industries that can participate in 98 See notes 37, 93, 94, 96 and 97. wind turbine component manufacturing (metal tank manufacturing, NAICS code 99 See note 37. 332420) based on the contract given by 100 Shannon D. Murray and Sean Cape Wind to a steel tank manufacturing Somerville, “BethSteel to Trim 400 Jobs firm in Massachusetts for construction of Sparrows Point Plate Mill to Close With- foundations for the Cape Wind project. in a Year,” Baltimore Sun, 16 December 90 Ibid. 1997. 91 Some guidance for the addition of 101 RenewableUK, State of the Industry industry categories came from L. Fing- Report, November 2010. ersh, M. Hand and A. Laxson, National 102 See note 37. Renewable Energy Laboratory, Wind42 Catching the Wind

103 Turbine, foundation, and cable in- Scottish Offshore Wind: Creating an Indus-stallation all have a “learning factor” of try, 4 August 2010.10 percent, reflecting 10 percent savingsfrom increased efficiency with every dou- 104 See note 65.bling of the volume of work. IPA Energy 105 See note 14.+ Water Economics for Scottish Renewables, Notes 43

44 Catching the Wind

Catching the Wind Harnessing the Potential ofOffshore Wind Power to Clean Our Air and Create Jobs in Maryland

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Catching the Wind Harnessing the Potential ofOffshore Wind Power to Clean Our Air and Create Jobs in Maryland — Document Transcript