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The New Jersey Board of Public Utilities (NJBPU) recently announced it has selected Ocean Wind 2, an offshore wind energy project proposed by Ørsted, for a 20-year Offshore Renewable Energy Credit (OREC) award at the $84.03 price from the state's second competitive solicitation for offshore wind energy. At 1,148 megawatts (MW), the Ocean Wind 2 project will allow Ørsted to develop the remaining portion of its Ocean Wind federal lease area and will power more than half a million New Jersey homes. It will be located adjacent to the company's first offshore wind project, Ocean Wind (Ocean Wind 1), which was awarded by the NJBPU in 2019. Ocean Wind 1 is being developed in partnership with Public Service Enterprise Group (PSEG), which owns 25% equity in the project.
Ocean Wind 2 will play a significant role in helping the state reach Gov. Murphy's goals of installing 7,500 MW of offshore wind capacity by 2035 and 100% clean energy by 2050. Together, Ocean Wind 1 and Ocean Wind 2 will deliver over 2,200 MW of offshore wind to the state.
As part of Ørsted 's proposal, Ocean Wind 2 will contribute to an expansion of the EEW Paulsboro monopile facility. The facility will be home to 500 full-time jobs and represents an investment of $250 million into southern New Jersey. Additionally, Ocean Wind 2 will generate over $4.8 billion in net economic benefits for New Jersey, helping to further develop a strong domestic supply chain.
With Ocean Wind 2, Ørsted is also bringing a commitment from leading industry partner, GE Renewables, to locate, what will be one of the country's first offshore wind nacelle assembly facilities, in New Jersey. This facility will assemble the nacelles for Ocean Wind 2 and other offshore wind projects in the United States. Anticipated to be located at the New Jersey Wind Port, the GE nacelle assembly facility will attract sub-suppliers to the State and consequently more manufacturing jobs. Nacelles are one of the most complex parts of a wind turbine, including generator, drive train and brake assembly, controllers, transformer and switchgear.
In addition to a robust economic development package, Ocean Wind 2 offers significant investments for New Jersey's environmental justice communities. Ørsted has partnered with Zeem Solutions to rollout 50 electric drayage trucks, associated vehicle infrastructure and mobility training programs for area residents at the Port of Newark.
Ocean Wind 2 will also establish a new 10-year $1.5-million scholarship and career development program with the New Jersey Institute of Technology (NJIT). This scholarship and career development program will create new opportunities for NJIT's engineering and computer science undergraduate students. The agreement also addresses STEM education gaps for underrepresented students in Newark by aiming to expand a range of STEM outreach events, initiatives, and college-prep programming for local elementary, middle school and high school students at NJIT. Additionally, the scholarship program potentially creates new co-op, internship and job opportunities for NJIT students at Ørsted's recently announced North American Digital Operation Headquarters in Newark.
While Ocean Wind 1 has already laid the foundation for small, women-owned and minority owned businesses to enter in the developing offshore wind industry with its $15-million Pro-NJ Grantor Trust, Ocean Wind 2 expands upon the commitment to ensure a strong and inclusive industry. Through a second Pro-NJ Grantor Trust, Ocean Wind 2 will allocate an additional $8 million for businesses, including veteran-owned businesses, who wish to enter the offshore wind industry.
Ørsted's many commitments to New Jersey in its Ocean Wind 2 bid will help create jobs and new opportunities for small businesses, while further cementing the Garden State's leading position in the American offshore wind industry.
For more information, read the original release.