Deepwater to develop 1000MW offshore wind project in US federal waters

US-based offshore wind project developer Deepwater Wind is set to develop a 1,000MW offshore wind energy project after bagging two leases in the federal waters off the coasts of Rhode Island and Massachusetts.

The Deepwater Wind Energy Center (DWEC), anticipated to be the largest offshore wind farm of the country, will feature 200 turbines placed 20 to 25 miles from the nearest landfall.

Deepwater Wind CEO Jeffrey Grybowski noted that the project to be located on the best offshore location in the US is a significant step ahead for the wind industry.

"Our Deepwater Wind Energy Center Project will produce clean power and jobs for an entire region. It’s very exciting," added Grybowski.

The project developer has secured the leases during an auction conducted by the US Department of the Interior’s Bureau of Ocean Energy Management (BOEM) with a winning bid of $3.8m.

Deepwater has paid initial payment of $900,000, seeking entry into the auction process, while the remaining amount is to be paid over the coming months during the official lease signing.

In addition, the company is liable for annual payments of $500,000 to the federal government starting this year, until a wind farm is operational on the site, following which it will pay an annual royalty fee based on the value of the energy produced.

Construction of DWEC is expected to commence by early 2017 and commercial operations by 2018.

"We commend Governors Chafee and Patrick and the Rhode Island and Massachusetts Congressional delegations for their shared commitment to advancing offshore wind development and the nation’s energy independence," Grybowski concluded.

Deepwater, meanwhile, is currently developing the 30MW Block Island Wind Farm, located about three miles off the coast of Block Island, Rhode Island.

The construction of the project, which is awaiting permission from the state and federal agencies, is scheduled to start in 2013, with the wind farm in service by 2015.