Governor Hochul Announces Largest, Single New York State Offshore Wind Supply Chain Award of $86 Million to Support Sunrise Wind Project
Investment by Ørsted and Eversource at Port of Coeymans Brings Construction and Steel Manufacturing Business to New York Companies
October 8, 2021
Governor Kathy Hochul today announced the largest, single offshore wind supply chain contract award in New York State to support the State's Sunrise Wind offshore wind project. Ørsted and Eversource, Sunrise Wind's joint development partners, signed a $86 million supply chain contract with Riggs Distler & Company, Inc. to construct advanced foundation components for wind turbines at the Port of Coeymans, bringing construction and steel manufacturing work to New York companies located in the Capital Region and Western New York, and creating 230 family-sustaining jobs. Additionally, the State will offer its next offshore wind solicitation in early 2022 targeting significant port infrastructure and supply chain investment to further maximize the long-term economic benefits of this burgeoning industry. Today's announcement supports New York State's nation leading goal to develop at least 9,000 megawatts of offshore wind by 2035.
"This new partnership for New York's Sunrise Wind project will infuse $86 million into New York's economy which directly benefits New York companies and creates quality construction and manufacturing jobs in local communities," said Governor Hochul. "We are going to be bold in how we achieve our climate goals and with our upcoming early 2022 offshore wind solicitation, New York will again demonstrate its national leadership in the acceleration to a green economy."
Lieutenant Governor Benjamin said, "The development of the U.S. offshore wind industry is a once in a generation opportunity that is providing significant economic and environmental benefits to communities across the state. In seizing this moment, we are creating a new workforce of skilled labor, which will be able to compete globally and attract new supply chain businesses to support the offshore wind industry, and in turn drive New York's green economy."
The announcement was made by Lieutenant Governor Benjamin today at an event at the Port of Coeymans and the agreement solidifies New York State as a major construction and jobs hub for the Sunrise Wind project and positions the Port of Coeymans to be among the first ports in the United States to be mobilized for the construction of advanced foundation components for an offshore wind farm by U.S. workers. It is anticipated 115 local union workers will be based at the Port of Coeymans to construct hundreds of large-scale and specialized components that are fundamental elements of the wind farm's turbine foundations. These components, ranging in size from 12 to 120 tons each and as tall as 40 feet, include the foundations' internal and external platforms, railings, steel ladders, cages, and other key parts that will attach to the monopile foundations the wind turbine generators will stand upon.
Doreen M. Harris, New York State Energy Research and Development Authority and Climate Action Council Co-Chair, said, "In New York, we have always known that offshore wind development must include a robust supply chain to ensure that the industry can grow and thrive. Our strategic offshore wind agreements with developers are designed to transform New York's port infrastructure while tapping into the skilled manufacturing sector that already exists across our State - and we are seeing this unfold with this major offshore wind investment at the Port of Coeymans."
David Hardy, Chief Executive Officer of Ørsted Offshore North America, said, "We're building a domestic supply chain and establishing a long-lasting industry that will be key to achieving the nation's green energy and economic goals. We're delivering on our commitment to bring thousands of new, union jobs to New York by partnering with regional suppliers and locating Sunrise Wind's construction hub in the Capital Region, which provides access to a skilled workforce and a reliable port for transit needs."
Joe Nolan, President and Chief Executive Officer of Eversource Energy, said, "Today's agreement marks a critical milestone as we continue to deliver on our promise to bring jobs, economic opportunity, and enough clean, renewable energy for hundreds of thousands of New York homes to the Empire State. Offshore wind, including our Sunrise Wind project, will play a key role in creating a new, clean energy future for all New Yorkers, helping combat the worst impacts of climate change while creating a new domestic supply chain that will benefit generations."
With the execution of this contract, Riggs Distler & Company, Inc, a leading union construction solutions firm with offices in Mt. Vernon and Saugerties, New York, and Cherry Hill, New Jersey, will serve as the general contractor to build the prefabricated advanced foundation components at the Port of Coeymans. Once complete, the components will be shipped down the Hudson River and out to the Sunrise Wind offshore wind farm site, located in federal waters roughly 30 miles east of Montauk Point, N.Y. Riggs Distler is a wholly-owned subsidiary of Centuri Group, Inc.
Stephen Zemaitatis, Jr., President and Chief Executive Officer of Riggs Distler, said, "Riggs Distler is pleased to be part of the U.S. offshore wind manufacturing base and at the forefront of this emerging clean energy industry in the Northeast. With more than 100 years in operations, we're proud to bring our skilled union workforce and local content to this first-of-its-kind project that will advance our region's climate goals and contribute to a cleaner, more sustainable future for our communities."
Additionally, this Sunrise Wind project investment will create significant manufacturing opportunities for local New York companies and create solid jobs for New Yorkers. Opportunities provided through this investment include:
- Ljungström LLC, of Wellsville, in Alleghany County, New York, will manufacture the steel components and deliver them to the Port of Coeymans. This will create at least 100 jobs in Western New York.
- The construction at the Port of Coeymans will be covered by a Project Labor Agreement. In accordance with the developers' commitment, Ørsted and Eversource will negotiate a Project Labor Agreement with the Greater Capital Region Building and Construction Trades Council, covering all construction work performed at the port in connection with the advanced components by Riggs Distler.
- 115 skilled tradesmen and tradeswomen from New York's building and construction trades, including electricians, carpenters, concrete masons, operating engineers, ironworkers, laborers and others will be mobilized to fabricate the components at the Port of Coeymans.
- Many additional New York opportunities will emerge for local construction support, transportation, facilities, and material supply to support the advanced components scope for Sunrise Wind. These include concrete supply, site support services, facilities, lighting, and equipment.
Matt Ferris, Ljungstrom Managing Director, said, "Ljungstrom is very excited for this opportunity to work together with our partners to help them successfully execute the first offshore wind project for New York. This is a very important milestone in our company's strategy to diversify our business from fossil fuel power generation over the last 98 years, into the emerging green/renewable market for offshore wind power generation."
Ørsted and Eversource, as part of Sunrise Wind, will also launch a $1 million workforce training initiative under the strategic leadership of the Center for Economic Growth. This will support project activities that support the project's scope, help raise job opportunity awareness and ensure area residents will have access to offshore wind economic opportunities, including efforts to prioritize skills training and hiring within disadvantaged communities.
Mark Eagan, President and CEO, Center for Economic Growth, said, "Sunrise Wind's project at the Port of Coeymans further solidifies New York's Capital Region as a major East Coast offshore wind component hub, connecting the state's manufacturing strength from Long Island to Western New York. Our ports in Albany County are proving to be invaluable assets - ones that are allowing the region to realize the economic impacts of the offshore wind industry. Thanks to the vision and support of Gov. Kathy Hochul, dedication and expertise of NYSERDA, and investment by Ørsted and Eversource, the region will not only have 100 more good-paying jobs but also a stronger, more inclusive and diversified economy."
Stephen Kelly, President of Sales and Business Development at Carver Companies said, "The Port of Coeymans and Carver Companies are proud to join with Orsted and Eversource to bring New York State commerce to the Capital Region. The Port of Coeymans continues to be a source of job opportunities and growth for the upstate economy, using the Hudson River as the integrated solution connecting land and sea."
New York State Department of Environmental Conservation Commissioner and Climate Action Council Co-Chair Basil Seggos said, "Governor Hochul is making combatting climate change and reenergizing our communities her top priority. The Governor understands what's at stake and she is acting with the urgency required to accelerate New York's transition to a green economy powered by renewable energy. The Sunrise Wind project is laying the foundation for New York's green energy future. Putting people to work combatting climate change is a sound strategy for protecting the environment and powering our economy."
Empire State Development Chief Operating Officer and Executive Deputy Commissioner Kevin Younis said, "Clean energy is a vital component of New York's economic future and this project will not only generate significant investment in the Capital Region, it will lead to the creation of hundreds of new, green jobs and a cleaner, greener New York."
New York State Department of Labor Commissioner Roberta Reardon said, "This is a critical step in moving New York's offshore wind projects forward. As co-chair of the Just Transition Working Group, I am thrilled to see the progress we are making in developing renewable and green energy sources. In addition to preserving our environment, jobs created through green infrastructure will create quality careers for all New Yorkers, especially our disadvantaged and underrepresented populations."
U.S. Senate Majority Leader Charles E. Schumer said, "This tremendous news is a win-win-win. It's a win for our environment that New York is tapping into the great renewable resource of offshore wind. It's a win for Capital Region economy that such large components of the project will be assembled here adding 230 jobs to the local economy. And it's a win for our men and women of organized labor, that Ørsted and Eversource have continued their commitment to do this work under a Project Labor Agreement."
Congressman Paul D. Tonko said, "Offshore wind presents a tremendous opportunity to deploy clean energy and reduce pollution all while promoting regional job creation and economic growth. Today's announcement of the partnership between Sunrise Wind, the Port of Coeymans, and Upstate New York businesses is a groundbreaking step to advance our clean energy goals and keep New York at the forefront of this new domestic industry. My congratulations to all involved in this project. I remain committed to fighting in Congress for federal policies that will ensure offshore wind plays a central role in our nation's clean energy future and that our Capital Region continues to benefit from greener ports and this emerging industry's job creation potential."
Senator Kevin Parker said, "As Chair of the Senate Energy and Telecommunications Committee, I am enthusiastic that the State's Sunrise Wind offshore wind project will have the opportunity to grow. This initiative will significantly increase our overall pool of renewable energy options, while creating green collar jobs for New York State residents. This is a huge win for our state, and I applaud Governor Hochul and NYSERDA for their vision and leadership, as we work to combat climate change."
Senator Michelle Hinchey said, "As a Capital Region Senator, I am incredibly proud that New York's largest offshore wind project is happening here at the Port of Coeymans, providing our communities with a direct line to new, good-paying jobs that will move us decisively toward a future powered by clean energy. This is a once-in-a-lifetime opportunity to establish the Capital Region as the nation's hub for offshore wind energy infrastructure, and I thank Ørsted and Eversource Energy for recognizing our community as a cornerstone of New York's fight against the climate crisis."
Assemblymember Patricia Fahy said, "Sunrise Wind is New York State's largest and nation-leading offshore wind initiative, and I am thrilled that a contract has been reached to bring more than one hundred good-paying, union and green jobs to the Port of Coeymans in the Capital Region for the manufacturing of wind turbines. As New York continues to set the standard for aggressive and ambitious climate action through the Climate Leadership and Community Protection Act (CLCPA), Sunrise Wind will continue to draw us closer to our emission goals while building a strong, green economy of the future in the process. I commend NYSERDA and all of the partners involved who continue to work to realize this project full potential."
Assemblymember John McDonald said, "I appreciate the work of the Governor and NYSERDA in building off the strong foundation of wind energy progress that has been launched in the Port of Albany. In addition, this initiative is yet another measure that will advance the goals of a law that I supported, the Climate Leadership and Community Protection Act, and this effort will bring us another step closer to a more sustainable future. Today's announcement will lead to more good jobs in our communities and benefits the region from both economic and environmental perspectives. A true win(d)-win(d) for all!"
Albany County Executive Daniel P. McCoy said, "Today's announcement is further confirmation that Albany County and New York's Capital Region will be a national hub for the U.S. offshore wind industry. I commend Governor Hochul for the steps she has taken and the leadership she has displayed to meet New York State's aggressive renewable energy goals. This project is a crucial step in our fight to prevent climate change and will have a lasting impact on our economy and our union workforce. I am thrilled to welcome Ørsted and Eversource to Albany County and congratulate the Port of Coeymans on this exciting project."
Albany County Legislator William Clay said, "New York is building a thriving and long-lasting offshore wind industry. I commend Ørsted and Eversource for their commitment and efforts to help lead the way in working to ensure inclusivity and maximize the positive potential of this endeavor in a thoughtful and significant manner for all elements of our workforce. As the result of an unprecedented global pandemic, investments in workforce training have never been more important for our communities, our people and our economy. As the offshore wind industry continues to grow, we want to make sure that the industry is engaging marginalized and underserved populations for offshore wind training, job and economic opportunities."
Gary LaBarbera, President of the New York State Building and Construction Trades Council, said, "Sunrise Wind's major economic and jobs agreement affirms yet again that the sustainable economy can be the new frontier of good union jobs. With construction at the Port covered by a Project Labor Agreement, more than one hundred of our hardworking tradesmen and tradeswomen will be leading the way forward assembling the foundation of this critical link to the future of New York's infrastructure. We are proud to partner with Ørsted and Eversource to build an energy supply chain that is essential to meeting the state's ambitious clean energy goals and to creating middle-class careers with benefits in the sustainable economy."
New York State AFL-CIO President Mario Cilento said, "This is exactly the type of investment we need to address climate change. It will create good union jobs utilizing a highly skilled workforce to help grow the middle-class while also paving the way to make New York a leader in the clean energy industry."
Mike Lyons, Greater Capital Region President, Building and Construction Trades of Greater NY, said, "On behalf of the Greater Capital Region Building and Construction Council and our over 20,000 union construction workers, we are overwhelmed with enthusiasm about this announcement at the Port of Coeymans. The pivot from fossil fuels to renewable energy has been proven to be a massive undertaking for all of our affiliates, but with partners like Ørsted and Eversource, we are confident that our members will always have opportunities to earn a good wage, have fully comprehensive health insurance and will be able to retire with dignity with a healthy pension. This investment will be transformative for the entire region and will touch infrastructure and expansion throughout the State."
Jeff Vockrodt, Executive Director of Climate Jobs NY, said, "Today's announcement represents an important step toward a clean-energy economy that works for everyone here in New York. It's great to see the State's commitment to offshore wind power creating these good local union jobs, and this is exactly the kind of development we need to continue to move forward -- investments in clean-energy infrastructure that create good family-supporting, community-sustaining union jobs for New Yorkers."
Adrienne Esposito, Executive Director of Citizens Campaign for the Environment said, "Transitioning our energy infrastructure is critical and thrilling! Not only will offshore wind power fight climate change and result in cleaner air but it brings us good paying jobs. Developing a supply chain for offshore wind that puts New York's talented residents to work will bolster our economy and stimulate economic growth. New York is not just talking about a green economy, we are building one. Congratulations to Governor Hochul and the team at NYSERDA for implementing their vision of offshore wind and green job creation."
Anne Reynolds, Executive Director of the Alliance for Clean Energy New York stated, "Offshore wind power is taking off in New York, and today's news from Sunrise Wind shows we are on the right path to creating new family-sustaining jobs in port communities while on the pursuit of cleaner air and energy. Congratulations to Sunrise Wind, NYSERDA, and the Port of Coeymans on this welcome news!"
Julie Tighe, President, New York State League of Conservative Voters, said, "New York is on the cusp of building a thriving and long-lasting offshore wind industry and we're excited to see that Ørsted and Eversource are leading the way. The use of the Port of Coeymans to build components for the Sunrise Wind project will not only accelerate our transition to renewable energy, but will also create hundreds of green, union jobs and invest millions in New York. We applaud Sunrise Wind for this important step forward and for their commitment to creating a clean energy future for New York."
New York State Offshore Wind Alliance Director Joe Martens said, "Today's announcement is proof positive that the promise of offshore wind is real and will benefit New Yorkers from Long Island to western New York. These investments will help build our domestic supply chain, provide family-supporting jobs, and reaffirm the critical role the Capital region's ports will play in the transition to a clean energy future."
As part of the New York State Energy Research and Development Authority's inaugural competitive 2018 offshore wind solicitation, New York State selected Sunrise Wind, which is 924-megawatt wind farm that will be located more than 30 miles east of Montauk Point. Construction is anticipated to start as early as 2023, with the wind farm expected to be fully operational in 2025.
More information about New York's nation-leading offshore wind program can be found here.
New York State's Nation-Leading Climate Plan
New York State's nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy wide carbon neutrality. It builds on New York's unprecedented investments to ramp-up clean energy including over $21 billion in 91 large-scale renewable projects across the state, $6.8 billion to reduce buildings emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.2 billion in NY Green Bank commitments. Combined, these investments are supporting more than 150,000 jobs in New York's clean energy sector in 2019, a 2,100 percent growth in the distributed solar sector since 2011 and a commitment to develop 9,000 megawatts of offshore wind by 2035. Under the Climate Act, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 35 percent with a goal of 40 percent of the benefits of clean energy investments are directed to disadvantaged communities, and advance progress towards the state's 2025 energy efficiency target of reducing on-site energy consumption by 185 trillion BTUs of end-use energy savings.