In a significant development for New Jersey’s first offshore wind project, as well as the future of the rapidly expanding clean energy sector in the state, Ocean Wind 1 announced the awarding of its first three major construction projects April 25.
Ocean Wind 1 is a joint venture between Ørsted and PSEG, which is expected provide clean energy to 500,000 homes while also delivering thousands of jobs. Another goal of the 1,100-megawatt wind farm is to ramp up supply chain initiatives, such as the EEW monopile manufacturing facility at the Port of Paulsboro.
The engineering, procurement and construction contracts were awarded to two firms: JINGOLI Power LLC and Burns & McDonnell Engineering Co. Inc. Those contracts include the installation of two high voltage substations and nearly 9 miles of underground cable that will connect the offshore wind farm to the onshore electric grid at two landfall points.
“The awarding of these construction contracts marks significant milestones in moving the state’s first offshore wind project moving forward,” said Grant van Wyngaarden, head of procurement, Ørsted North America. “We are focused on doing all we can to meet the state’s timeline for delivering the Ocean Wind 1 project, hiring locally, creating job opportunities, and encouraging supply chain growth to help the offshore wind industry mature in New Jersey.”
“Offshore wind is critical to helping New Jersey achieve its clean energy ambitions and these agreements mark a significant step in the process,” said Lathrop Craig, PSEG vice president of wind development. “In addition to ensuring the project remains on track, it’s essential we ensure that a breadth of diverse, qualified and talented workers have access to the many opportunities that this new industry affords.”
JINGOLI Power will install an underground electric export cable from landfill to B.L. England, the site of the onshore electric substation in Upper Township, and engineer, procure and install a duct bank/manhole system that will house the export cables.
“Ocean Wind 1 proves that we don’t have to choose between creating good jobs and fighting climate change. We do both,” said Joseph Jingoli Jr., CEO of JINGOLI and co-founder of JINGOLI Power. “We’re extremely honored to have been selected by Ørsted and PSEG for this project. And we’re ready to get to work building this critical component of New Jersey’s clean energy economy.”
Burns & McDonnell will install substations in both Upper Township and Oyster Creek that will include interconnection to nearby Atlantic City Energy and First Energy substations, respectively.
“Burns & McDonnell is honored to be selected by Ørsted and PSEG to deliver this critical project that will further drive the sustainable energy transition in the U.S.,” said Ray Kowalik, chairman and CEO of Burns & McDonnell. “With our firm’s experience in the continually expanding offshore wind market and our rapidly growing teams in New Jersey and the Northeast, we are well-positioned to execute on this project that will create high-paying local union jobs and provide efficient, sustainable energy to New Jersey for years to come.”
Ahead of the contract awarding, a series of supply chain networking events were held that connected New Jersey businesses with qualified project bidders to pitch their capabilities for sub-contracting consideration. Both companies have pledged to hire New Jersey-based businesses that utilize union workforces, with plans to subcontract work to qualified diverse businesses.
“Ocean Wind 1 will be built under industry-leading project labor agreements and specific partnerships with local union organizations to ensure local union labor participation in all phases of construction,” said Dan Cosner, president of South Jersey Building Trades Council and business manager, IBEW Local 351. “Onshore activities for the project’s underground duct bank system, transmission, and substation facility are the first to begin and will source construction labor local, New Jersey union hiring halls.”
Construction is estimated to start in September 2023.