Another glorified wind energy project has made its way to the chopping block. Siemens Gamesa canceled its plan to build “the first offshore wind turbine blade facility in the United States” in Portsmouth.
In October 2021, amid the launch ceremony for the project, the European turbine maker announced it had signed a long-term lease with the Virginia Port Authority for over 80 acres at the Portsmouth Marine Terminal.
According to the company, a $200 million project lie ahead that included over $80 million in investment for buildings and equipment at the Terminal.
The company was so bullish and confident that it said, “Siemens Gamesa will look to potentially expand the facility if awarded future projects in the region, creating additional jobs in the future.”
The jobs the Portsmouth facility was supposed to bring were a big deal.
“In Virginia, lawmakers have sold offshore wind as a major job creator.”
Virginia Mercury
Ralph Northam, who was then serving as governor, celebrated that the new facility would create 310 new jobs. About 50 were supposed to be service jobs to support Dominion’s Coastal Virginia Offshore Wind Project aka Virginia Beach wind farm.
“This is good news for energy customers, the union workers who will bring this project to life, and our business partners,” Northam said. “Make no mistake: Virginia is building a new industry in renewable energy, with more new jobs to follow, and that’s good news for our country,” 13 News Now reported him stating.
Jennifer Granholm, who was U.S. Energy Secretary, was at the launch event and also emphasized the array of jobs promised to spring forth from the offshore wind industry, Virginia Mercury reported.
Portsmouth plan fizzles and fades
In an Oct. 26 statement, parent company, Sieman Energy, said “Siemens Gamesa is working through the quality issues and is addressing the offshore ramp up challenges…
“As Siemens Gamesa is for the time being not concluding new contracts for certain onshore platforms and is applying strict selectivity in the offshore business, order intake and revenue are expected to be lower than market expectations for fiscal year 2024, and net losses and cash outflow are expected to be higher than market forecasts,” its parent added.
For the Portsmouth project specifically, “Siemens Gamesa discontinued plans to build and operate an offshore blade facility in Virginia, as development milestones to establish the facility could not be met,” a spokesperson told The Virginian- Pilot.
This comes at a time when the offshore wind industry is reportedly being challenged by inflation, rising interest rates and supply chain issues. Numerous deals have been canceled in states such as New Jersey, Massachusetts, and Connecticut.
Portsmouth Mayor Shannon Glover told The Virginian-Pilot the city would continue to seek out partners that will provide services, good-paying jobs, and tax revenue for the city.
The cancellation of the Portsmouth project won’t have any impact on the Dominion Energy wind farm project in Virginia Beach, according to AP. Siemens Gamesa is slated to provide the turbines but plans to do so from its facilities in Europe.
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