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03/27/2024

Avangrid Submits Multiple Proposals for Transformative New England Wind Projects to Regional Offshore Wind Solicitation

Avangrid Submits Multiple Proposals for Transformative New England Wind Projects to Regional Offshore Wind Solicitation

Shovel-Ready New England Wind 1 Positioned to Provide 791 Megawatts of Clean, Reliable Offshore Wind Power to the Region by 2029, Advancing Critical State Climate Targets
Combined, New England Wind 1 and 2 will Create up to 9,200 Jobs, Deliver $8 Billion in Direct Investment, and Catalyze Groundbreaking Economic Investments Throughout the Region

 

Boston, MA – Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, today submitted multiple proposals for mature, transformative New England Wind projects to the Massachusetts-Connecticut-Rhode Island multi-state solicitation for offshore wind power. New England Wind, representing two projects – the 791 Megawatt (MW) New England Wind 1 project and 1,080 MW New England Wind 2 project – are among the most mature offshore wind opportunities in the nation, with the ability to achieve commercial operations before the end of the decade, delivering an urgent energy, climate, and economic solution to the region.  Avangrid submitted a bid for New England Wind 1, a second bid for New England Wind 1 and 2 combined, and additional bids for single-state procurements in Massachusetts, Connecticut, and Rhode Island. As the leading offshore wind developer in the United States, Avangrid is spearheading the development of the first-in-the-nation Vineyard Wind 1 project, currently under construction and delivering clean, reliable power to 30,000 homes and businesses in Massachusetts. 

“At this historic turning point for climate action, New England Wind answers the region’s call for projects that reflect the urgency, ambition, and certainty the moment demands,” said Avangrid CEO Pedro Azagra. “In powering up the first-in-the-nation Vineyard Wind 1 project, Avangrid proved that American offshore wind is possible. New England Wind 1 in particular builds on this momentum by offering a shovel-ready project that is prepared to start construction as soon as next year. With nearly all local, state, and federal permits in hand, all interconnection rights secured, and a Project Labor Agreement signed with a skilled, local, union workforce, Avangrid is ready to go.”

“True to its name, New England Wind is a commitment – from Salem to Boston, New Bedford to Barnstable, North Kingstown to Bridgeport – to make the region and its historic communities the heart and soul of this project,” said Avangrid Chief Development Officer, Offshore Ken Kimmell.
“With this bold multi-state procurement, Massachusetts, Connecticut, and Rhode Island have sent a clear message that now is the time to move forward with purpose on offshore wind,” said Avangrid Senior Vice President of Public and Regulatory Affairs Kimberly Harriman. “We believe New England Wind is the right project at the right time, with the ability to help the region address its pressing energy and climate challenges, build out the American offshore wind supply chain, and bring along our communities as we advance the energy transition.” 

Proposal One: New England Wind 1 - 791 Megawatts

New England Wind 1, formerly known as Park City Wind, is an exceptionally advanced and shovel-ready project in federal lease area OCS-A-0534, roughly 30 miles south of Barnstable, Massachusetts and making landfall under the Craigville Beach parking lot. The project will border Vineyard Wind 1 to the south. New England Wind 1 offers enough clean, reliable energy to power approximately 400,000 homes and reduce emissions equivalent to taking 300,000 gasoline-based cars off the road annually. 

New England Wind 1 will create more than 4,400 full-time equivalent jobs, and bring $3 billion of direct investment to the region. 

New England Wind 1 offers extraordinary certainty and viability. With complete state, regional, and local permitting, a signed host community agreement with the Town of Barnstable, and a nearly complete federal permitting program, the project can begin construction as soon as next year and achieve commercial operations in 2029, helping achieve ambitious 2030 state climate targets set by the New England states. The project received a Final Environmental Impact Statement from the Bureau of Ocean Energy Management in February 2024, with a Record of Decision (ROD) anticipated in April 2024 and Construction and Operations Plan (COP) Approval anticipated in July 2024.
New England Wind 1 also offers transformational economic opportunities for the region.
 

Investing in the American Offshore Wind Supply Chain 
 

  • Catalyzing New Offshore Wind Marshalling Port in Salem, Massachusetts: New England Wind 1 will provide $30 million in upfront investment, and $100 million in lease payments to catalyze the development of a world-class offshore wind marshalling port in Salem, Massachusetts. Avangrid has entered into a binding lease with Crowley, which holds a lease at Salem Harbor, for a facility that will be owned by the Massachusetts Clean Energy Center. New England Wind 1 will serve as Crowley’s anchor tenant, supporting the development and construction of this new port. 
  • Bringing Offshore Wind Manufacturing to New Bedford, Massachusetts: Avangrid is partnering with global offshore wind lifting equipment manufacturer Liftra, committing the seed funding and supply procurement to establish the first-in-the-nation “davit crane” manufacturing facility at the South Coast Mills site near the New Bedford Marine Commerce Terminal. Davit cranes lift equipment and tools for workers to build, maintain and repair the turbines, and are a critical component for offshore wind turbines not currently manufactured in the US.
  • Utilizing New Bedford Foss Marine Terminal as a Construction Logistics Hub with American-Made Vessels: Avangrid will expand the South Coast’s offshore wind economy by utilizing the newly constructed Foss Marine Terminal for a Construction Logistics Hub where all crew transfers will take place, using a purpose-built service operations vessel (SOV) by Edison Chouest Offshore and two crew transfer vessels (CTVs), one purpose-built locally for the Project, operated by local company Patriot Offshore Maritime Services.
  • Locate O&M Hubs in Bridgeport, New Bedford: Avangrid has signed agreements with landowners in Connecticut and Massachusetts to site operations and maintenance facilities for its nation-leading offshore wind portfolio at Barnum Landing in Bridgeport and Shoreline Offshore facilities in New Bedford. 

Growing the New England Clean Energy Workforce

  • Project Labor Agreement with Massachusetts Building Trades: Avangrid has executed a Project Labor Agreement (PLA) with the Massachusetts Building Trades Council to cover onshore construction work, such substations and electric duct banks, and is in advanced negotiations with the National Building Trades Union to sign another PLA covering offshore construction, which Avangrid expects to sign shortly.  These agreements will result in hundreds of direct high-paying jobs.
  • Building a Diverse and Inclusive Offshore Wind Workforce: Avangrid is partnering with various institutions and organizations in Massachusetts, Connecticut, and Rhode Island, with a focus on ensuring Environmental Justice (EJ) populations and other underrepresented communities have access to the training, certifications, and education necessary to secure quality, well-paying jobs in offshore wind.
  • Delivering a Training Hub with Survival Systems USA at the Port of Davisville: Avangrid will establish a first-of-its kind foundation component-based training center located at the Port of Davisville with Survival Systems USA (Survival Systems), expanding the Connecticut-based woman-owned business into Rhode Island and establishing a regional training hub.

Bringing the Benefits of Offshore Wind Power to New England Communities

  • Establishing First Offshore Wind Partnership with City of Boston: Avangrid has entered into an MOU with the City of Boston, in which it will deliver 15 MW of power to Boston should the project win a bid award. 15 MW is the clean energy equivalent of one turbine, providing power equivalent to 1/3 of all Boston Public Schools (BPS) buildings, as well as 5,000 residential homes. In addition, Avangrid has committed funding to support green jobs training at BPS vocational schools, giving students a pathway to well-paying jobs in the clean energy and offshore wind industries. 
  • Providing Clean Power to Other Massachusetts Municipalities: Avangrid has agreed to an MOU with the Massachusetts Municipal Wholesale Electric Company (MMWEC), the Commonwealth’s designated joint action agency for municipal utilities in the state, which manages a 2.8 GW annual power supply portfolio for its 20 Member municipal utilities.  Under this MOU, MMWEC and New England Wind will negotiate a long-term power agreement should the project win a bid award.
  • Supporting Grid Modernization and Resilience on Cape Cod: Avangrid has signed agreements with Eversource to interconnect the New England Wind 1 Project to the ISO-New England (ISO-NE) grid, from cable landfall to grid injection, including the Large Generator Interconnection Agreement addressing grid upgrades, well ahead of other projects in this critical area. All of Avangrid's onshore works will use Massachusetts union labor.
  • Directing Meaningful Benefits to Low-Income Ratepayers and Environmental Justice Communities: Avangrid will deliver direct benefits to low-income households by partnering with local organizations in Massachusetts, Connecticut, and Rhode Island improving energy efficiency, resolving barriers that limit low-income household participation in energy efficiency programs program, and/or supporting the installation of rooftop solar for low-income households in Environmental Justice communities. 

Proposal Two: New England Wind 1 + New England Wind 2 - 1870 Megawatts
 

As a combined bid, New England Wind 1 and 2 offer the region 1870 MW of clean, reliable offshore wind power, enough to power nearly 1 million homes and reduce emissions by nearly 4 million U.S. tons, equivalent to taking 700,000 cars off the road annually. New England Wind 2, formally known as Commonwealth Wind, is only offered as a combined project with New England Wind 1 to capture important economics of scale and support significant grid upgrades. 

Combined, the projects will create up to 9,200 full-time equivalent jobs and bring $8 billion in direct investment to the region. 
Proposal Two offers unique additional economic benefits to the region, including:

  • Prysmian Cable Manufacturing Facility at Brayton Point in Somerset: Prysmian Cable Manufacturing, a world-class cable manufacturer will establish a first-of-its-kind in the Northeast US state-of-the-art subsea cable manufacturing facility. If awarded a contract, New England Wind 2 will receive the first subsea export cables produced at this facility, with an executed contract guaranteeing the earliest possible economic benefits before Prysmian produces export cables for other domestic and global projects for years to come. The facility will not be built in time to be available for New England Wind 1.

Statements of Support for New England Wind
 

Boston Mayor Michelle Wu: “Boston must lead the way in building a sustainable future, and we’re proud to set a new standard with a direct stake in innovation to create clean energy and good jobs for our residents and communities. This partnership advances our climate goals while bringing thousands of green jobs to our region, creating a pathway for generations to come."

City of Salem Mayor Dominick Pangallo: “Avangrid’s commitment to developing a regional approach to using local supply chains and workforce are utilized in the fulfillment of their project is deeply meaningful to our community. Salem and the North Shore are positioned to support the Commonwealth and nation to meet our clean energy goals. We are excited to continue Salem’s tradition as a hub for generating regional economic development while also being an active proponent and partner for the development of renewable energy sources.”
Massachusetts Building Trades Unions President Frank Callahan: “Vineyard Wind 1, as the standard bearer for this industry in the United States, has demonstrated that union workers are critical to the success of offshore wind. To continue this progress for our workers, our region, and our climate, we need to ensure we have good partners and good projects to keep us moving forward. We believe Avangrid is a proven partner for the building trades, and for New England, to build on the momentum and foundation established by Vineyard Wind 1 and ensure the region remains a national offshore wind leader.”
Commonwealth of Massachusetts State Senator Joan Lovely and State Representative Manny Cruz: “This port can be a catalyst for our North Shore region, but only if it’s deployed into use. As the first contracted tenant at the Salem Port, we believe Avangrid is uniquely positioned to deliver a transformational project to Massachusetts that will help the state meet its critical energy needs and secure new economic opportunities for its residents here on the North Shore. As the developer of the first large-scale offshore wind project in the United States, Vineyard Wind 1, Avangrid has already demonstrated the expertise, experience, and commitment necessary to permit, finance, construct, and deliver offshore wind to the New England region and benefit the City of New Bedford through that project. While Vineyard Wind 1 is a tremendous accomplishment, Avangrid is also advancing up to 2 gigawatts of additional capacity forward in the remaining portions of its lease area through this RFP process that they plan to marshal out of Salem.”
 

Crowley Wind Services Senior Vice President and General Manager Robert Karl: “Crowley appreciates the partnership with Avangrid as they will be the anchor tenant in this world-class marshaling port for offshore wind. The successful development and operation of the port, which is being accomplished in partnership with the City of Salem and the Commonwealth of Massachusetts, will unlock incremental investment in the North Shore communities by providing opportunities for new jobs and workforce development, as well as increased tax revenue and support for community programs through a Community Benefits Agreement with the City. Avangrid has made it clear it is seriously committed to this port transformation and community benefits as well.”

Liftra USA, Inc. President Ryan Huff: “Both Liftra and Avangrid are committed to investing in offshore wind technology that is not only sustainable for the environment but also the local economies supporting it. The partnership between Avangrid and Liftra has great potential to scale beyond the current collaboration to supply davit cranes for the New England Wind 1 project. Liftra’s expansion to New Bedford, Massachusetts is made possible by Avangrid’s proposed order and investment. Liftra envisages to manage a local workforce in Massachusetts of approximately 50 employees by the time the New England Wind project is being finalized.”

Foss Offshore Wind President Joel Whitman: "When Foss Offshore Wind made the decision to build the Foss Marine Terminal in New Bedford we knew we'd need long-term partners to make the project a reality. Avangrid will be such a partner if their bids are awarded. Avangrid has shovel ready projects that will create jobs here in New Bedford this decade.”

Shoreline Offshore President Mike Quinn: "My family has always looked toward the future and been mindful that we must sustainably manage this nation's natural resources.  Over thirty years ago, my father, Charlie Quinn saw the benefits of engaging with marine scientists by inviting them on his vessels to ensure transparency and accuracy in the assessment of scallop stocks. That effort continues today. In keeping with our tradition of sustainability we began offering offshore wind support services and have been proud to support Avangrid's development of Vineyard Wind 1 from our facilities in New Bedford. As a business partner, we look forward to Avangrid's award in this solicitation so that Massachusetts-based businesses like ours can continue to develop a sustainable local supply chain."

Buck McAllister, President of McAllister Towing and the Bridgeport and Port Jefferson Steamboat Company: "Since 2018, we have made an offshore wind partnership at our Barnum Landing site a goal. Avangrid has been a partner on that since day 1. Avangrid has a deep commitment to Connecticut and especially the City of Bridgeport. We hope to make the operations and maintenance port in Bridgeport a reality, if Connecticut selects New England Wind 1.”

Kerry Bowie, Executive Director and President, Browning the Green Space: "For years, Avangrid has engaged with BGS to proactively determine ways the clean energy industry can address systemic barriers to advancing diversity, equity, and inclusion. The Vineyard Wind 1 project and now the New England Wind projects represent a substantial opportunity to invest in building a workforce pipeline that is representative of the Commonwealth and all its residents.”

Greater Hyannis Chamber of Commerce President and CEO Marty Bruemmel: “The Greater Hyannis Chamber of Commerce believes Avangrid can deliver a transformational project to Massachusetts that will help the state meet its critical energy needs and secure new economic opportunities for its residents. The Chamber is in full support of this proposal which will serve our organization's mission of promoting community and economic development in the greater Hyannis area.”

Barnstable Clean Water Coalition Executive Director Zenas Crocker: “We have the opportunity and an obligation to lead the way in supporting clean power from offshore wind in the United States. Global climate change, exacerbated by fossil fuels, is causing sea level rise that will change the geography of Cape Cod, including our beaches. Cape Cod should become a leader in offshore wind power because few communities will face the startling challenge of sea level rise like we will. With this offshore wind procurement, Massachusetts could stay on the forefront of this industry and continue the momentum to build a robust, competitive, durable, and green industry for decades to come. To this end, Barnstable Clean Water Coalition will continue to support advancement, and expansion, of sustainable offshore wind power projects off coastal Massachusetts.”

Greater Bridgeport Opportunities Industrialization Center (OIC), Deborah Caviness President of the Greater Bridgeport OIC, and Founder of the Southern CT Black Chamber of Commerce: “Avangrid is uniquely positioned to deliver a transformational project to Connecticut that will help the state meet its critical energy needs and secure new and sustaining economic opportunities for its residents and small businesses. Offshore wind is a critical piece of the puzzle to address climate change, and Connecticut and its partner states can stay at the forefront of this industry and continue the momentum to build a robust, competitive, inclusive, and green industry for decades to come. This project, which will provide local diverse residents, businesses and suppliers with well-paying jobs and opportunities in the offshore wind industry combined with an Operations and Maintenance facility for the duration of the project, will be significant.”

Climate Action Rhode Island Co-President Jeff Migneault: “We believe there is an urgent need for offshore wind expansion in this region and are excited to see this procurement moving forward.  Avangrid’s projects will deliver as much as 2GW capacity of wind energy and will be able to power up to 1 million homes and businesses in the region. This will reduce emissions by up to 3.9 million tons of carbon dioxide. With the climate crisis already bringing dangerous heat waves, hurricanes, floods, and droughts to the region, we cannot afford to wait to move forward with projects such as this. Rhode Island has the potential to return to its roots as the birthplace of manufacturing in the US, becoming part of the green economy and a major producer of domestic, clean energy. Rhode Island’s economy will greatly benefit from the thousands of jobs that will be created by this project.” 

Massachusetts Municipal Wholesale Electric Company (MMWEC) CEO Ronald C. DeCurzio: “After substantial effort throughout the entire Massachusetts offshore wind procurement process to date, MMWEC has found Avangrid, and its offshore wind project bid to provide a very credible and meaningful opportunity for municipal utilities to acquire the beneficial entitlements of offshore wind generation.”

In February 2024, Avangrid announced that it has powered up the first five turbines for the nation-leading Vineyard Wind 1 project, delivering clean energy to 30,000 homes and businesses in Massachusetts. Vineyard Wind 1, the first large-scale offshore wind project in the United States, is currently providing approximately 68 Megawatts to the New England grid, delivering a steady stream of clean energy that will help the region meet winter electricity demand. Vineyard Wind 1 will be the largest renewable energy facility in New England once fully operational, delivering 806 Megawatts – enough clean electricity to power 400,000 homes and businesses in the Commonwealth.

About Avangrid

About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $44 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: networks and renewables. Through its networks business, Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewables business, Avangrid owns and operates a portfolio of renewable energy generation facilities across the United States. Avangrid employs approximately 8,000 people and has been recognized by JUST Capital in 2021, 2022, 2023 and 2024 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2024, Avangrid ranked first among utilities and 12 overall. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2024 for the sixth consecutive year by the Ethisphere Institute. Avangrid is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit www.avangrid.com.

 

About Iberdrola: Iberdrola is one of the world's biggest energy companies and a leader in renewables, spearheading the energy transition to a low carbon economy. The group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola’s main markets include Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others.

With a workforce of nearly 40,000 and assets in excess of €141.7 billion, across the world, Iberdrola helps to support 400,000 jobs across its supply chain, with annual procurement of €12.2 billion. A benchmark in the fight against climate change, Iberdrola has invested more than €130 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles.

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