Sign In
Free Newsletter
Will NJ’s wind farms mean more jobs for the state?
Martin Daks//March 21, 2022//
Listen to this articleEnvironmentalists aren’t the only ones cheering the Garden State’s ambitious plans to generate renewable energy with offshore wind farms. An “offshore wind supply chain” registry, developed by the New Jersey Economic Development Authority (NJEDA), lets companies tout their ability to supply components and services for wind projects; and has already attracted more than 500 suppliers, law firms and other enterprises from the state and elsewhere.
NJBIZ spoke with some of them about how wind farms could provide a fresh breeze of new business activity.
Call in the lawyers
The state’s drive to push offshore wind farms creates a natural market for law firms, according to Rutter & Roy LLP Managing Partner Christine Roy. The firm has represented Ocean Wind 1 since April 2021, and more recently, Ocean Wind 2, the offshore wind farms being developed about 15 miles off the coast of Atlantic City.
“Our firm has a history of supporting energy projects, including siting, jurisdictional determinations, land acquisition and permitting, Green Acres diversions and conservation easements and other regulatory implications,” noted Roy, who focuses on environmental, energy and infrastructure matters, and areas related to energy, infrastructure and environment. “We’ve worked with a variety of electric energy providers and other linear projects, where organizations needed right-of-way from one point to another.”
That kind of experience will be important for the state’s planned wind farms, since “the turbines will be offshore, but the energy has to be transmitted to substations located onshore,” added Rutter & Roy Partner Richard Scott, whose practice encompasses regulatory matters involving linear construction and other projects. “Firms like ours can leverage the skills we’ve developed working with natural gas and electric suppliers to get these projects permitted across Green Acres and state land.”
And getting projected approved in New Jersey isn’t easy, Roy said, “but as a boutique law firm that’s been engaged in some big projects, we’ve helped our clients to achieve their goals. There are a lot of regulatory hoops to jump through, but with the proper planning and knowledge we can get through them.”
A lot of the legal work connected with wind farms will probably go to large law firms, according to Kevin J. DiMedio, who runs a Haddonfield-based solo practice. “But there should still be a lot of niche work, like compliance, future permitting and other related regulatory issues, that smaller firms can handle,” he said. That’s why DiMedio listed his firm, DiMedio Law, on the registry.
“Smaller firms may offer targeted experience that can benefit these big projects,” added DiMedio, who served as inside counsel with the publicly listed homebuilder D.R. Horton before opening his own practice. “My practice focuses on business services, including real estate taxes, compliance, permitting and other matters, which may all come into play as offshore wind farms are developed.”
He thinks New Jersey, in particular, offers a lot of opportunities for lawyers. “Offshore wind is an emerging market, and there are many legal and other regulatory and agency issues that will need to be considered,” DiMedio said. “And there are many governmental and quasi-government agencies in the state, so it’s safe to say that large companies may likely turn to experienced local law firms to address the many regulatory and other legal matters that may arise.”
The nuts and bolts of job creation
For some companies, like Repair Technology, the opportunities associated with offshore wind farms will develop after the projects are up and running. “As a distributor of Belzona products and specialist in repair and maintenance, we are well-positioned for the inevitable R&M that will be required after the installation of the giant wind turbines,” said Christopher Banks, president of Repair Technology and Banks Industrial Group, a family owned, 35-employee company that started operations in 2003.
“Damages will occur — the turbine blades will suffer from wind erosion; the metal or concrete base of the towering wind turbines will suffer erosion from being constantly exposed to the ocean, and other kinds of natural wear and tear will occur,” he said. “Our products have already proven useful for onshore wind farms in Texas and other areas, so it’s not a big leap to use them for offshore site repair and maintenance.”
SJI’s ‘green’ initiatives spur more jobs
South Jersey Industries — a Folsom-based energy services holding company that includes subsidiaries South Jersey Gas and Elizabethtown Gas — is continuing to expand its green activities, which is also expected to generate new jobs, according to Nick DiRocco, vice president, External Affairs
“We’re continuing our activities in a variety of areas,” he said. “In December 2020, for example, SJI entered into a Memorandum of Understanding governing a potential partnership with Atlantic Shores Offshore Wind, a 50/50 joint venture between Shell New Energies LLC and EDF Renewables North America. We will create a pilot program to study the feasibility of producing clean hydrogen using renewable power sources. Green Hydrogen, which can be mixed into natural gas delivery systems, is produced via the electrolysis of water using electricity from renewable sources.”
In December 2020, SJI entered into an agreement to acquire a minority equity interest and development rights in REV LNG LLC (REV), “a vertically integrated services and development company specializing in renewable natural gas (RNG), liquefied natural gas (LNG), and compressed natural gas (CNG) assets in North America,” explained Donna Schempp, president of SJI Renewable Energy Ventures and senior vice president, SJI Energy Enterprises Group. “Over the last few years, REV has become one of the country’s leading developers of dairy RNG projects through capturing, cleaning and converting bio-methane to RNG. REV also works with dairy farms to acquire the rights to manure feedstock and land leases, along with presiding over the development and construction of anaerobic digesters and gas processing to produce RNG.”
RNG projects developed in New Jersey are projected to bring $10 million – $100 million in capital investment per project, while creating up to 173 direct and indirect jobs per project, according to the Coalition For Renewable Natural Gas, an advocacy organization. And according to SJI, a 2011 study done by the American Gas Foundation found that renewable gas could create up to nearly 257,000 new jobs under scenarios of high biomass utilization across the country. In New Jersey, the AGF estimates that more than 2,700 jobs could be created, according to SJI.
New Jersey is a prime location for wind farms, which could represent a significant revenue source for the company, he added. “If a bird hits the spinning blade of a land-based windmill, which can damage the leading edge of the blade, replacing it can cost thousands of dollars a day in labor alone. It’s also costly to take out a shaft that’s constantly rotating and gets naturally worn out by use. Those costs will be multiplied significantly if parts have to be dismounted from an offshore unit — but our R&M products offer the opportunity to repair the unit and extend its useful life without removing it, which will generate significant savings.”
“We’ve been working with Ørsted engineers to get our epoxies and other products approved to repair the inevitable damage,” he added.
Other businesses are also looking forward to getting a foot in the door of the offshore wind farm market. “The NJEDA and the [nonprofit] Business Network for Offshore Wind is hosting a webinar, entitled Offshore Wind Ready NJ, in late March,” said Gail Friedberg Rottenstrich, CEO and co-founder of ZAGO Manufacturing Co., “and among the topics to be covered is how New Jersey-based companies can enter the offshore wind industry supply chain. We plan to attend it and we also plan to attend the International Offshore Wind Partnership Forum taking place in Atlantic City in April.
Rottenstrich called it, “the opportunity of a lifetime for ZAGO Manufacturing Co.,” which has manufactured both custom and standard sealing fasteners in Newark for 29 years. “We are a sustainable manufacturer, making sustainable sealing solutions for a sustainable world. Our corrosion-resistant, reusable sealing fasteners are specifically designed to shield contaminants, such as saltwater, precipitation, dirt, chemicals and lubricants from seeping into equipment and damaging it or leaking out and potentially harming our environment.”
Planning for the future
The U.S. offshore wind industry is projected to attract more than $100 billion of new investment and create up to 83,000 domestic jobs by 2030, according to a 2020 American Wind Energy Association estimate — and New Jersey has a “critical window of opportunity” to be a major player in this segment, including in turbine manufacturing and other components of the lucrative off-shore wind supply chain, said representatives from the New Jersey Economic Development Authority. “The New Jersey Wind Port and Paulsboro Marine Terminal are two strategic investments that will play a vital role in achieving this goal and positioning New Jersey as the nation’s foremost offshore wind industry hub,” said Jen Becker, NJEDA managing director, Wind Institute Development. “Our strategic location on the East Coast makes the state a natural candidate to play a key role as an offshore wind hub, particularly in the marshalling phase.”
Marshalling refers to the steps involved in assembling offshore wind turbines, added Jonathan Kennedy, NJEDA’s managing director, Infrastructure. “Marshalling involves bringing the wind tower, blades and other major components to a central site, assembling them and then floating them out on a purpose-built installation vessel to the offshore site itself.” He noted that New Jersey “is one of the few locations on the East Coast that can offer property suitable for manufacturing co-located with marshalling. Manufacturing can be accommodated at a facility that’s being constructed at the Paulsboro Marine Terminal in Gloucester County, while marshalling and manufacturing can be done at The New Jersey Wind Port, which will be built in in Lower Alloways Creek, Salem County.”
The Paulsboro Marine Terminal opened in 2017 and is being expanded with a monopile manufacturing facility — being constructed by Germany-based EEW American Offshore Structures — that is expected to create more than 500 jobs at full build out. Construction on the facility began in January 2021, and production is slated to start in 2023. Separately, the Wind Port was announced in June 2020, and ground was broken in September 2021. “We’re currently engaged in core construction, and we anticipate [the first phase of] the Wind Port will be operational in 2024,” Kennedy said.
Added Becker, “We’re working with EEW on training opportunities for future employees; and the NJEDA is developing programs for local welders, marine coating and other good-paying positions connected with the Marine Terminal and the Wind Port.”
Planning for the future
The U.S. offshore wind industry is projected to attract more than $100 billion of new investment and create up to 83,000 domestic jobs by 2030, according to a 2020 American Wind Energy Association estimate — and New Jersey has a “critical window of opportunity” to be a major player in this segment, including in turbine manufacturing and other components of the lucrative off-shore wind supply chain, said representatives from the New Jersey Economic Development Authority. “The New Jersey Wind Port and Paulsboro Marine Terminal are two strategic investments that will play a vital role in achieving this goal and positioning New Jersey as the nation’s foremost offshore wind industry hub,” said Jen Becker, NJEDA managing director, Wind Institute Development. “Our strategic location on the East Coast makes the state a natural candidate to play a key role as an offshore wind hub, particularly in the marshalling phase.”
Marshalling refers to the steps involved in assembling offshore wind turbines, added Jonathan Kennedy, NJEDA’s managing director, Infrastructure. “Marshalling involves bringing the wind tower, blades and other major components to a central site, assembling them and then floating them out on a purpose-built installation vessel to the offshore site itself.” He noted that New Jersey “is one of the few locations on the East Coast that can offer property suitable for manufacturing colocated with marshalling. Manufacturing can be accommodated at a facility that’s being constructed at the Paulsboro Marine Terminal in Gloucester County, while marshalling and manufacturing can be done at The New Jersey Wind Port, which will be built in in Lower Alloways Creek, Salem County.”
The Paulsboro Marine Terminal opened in 2017 and is being expanded with a monopile manufacturing facility — being constructed by Germany-based EEW American Offshore Structures — that is expected to create more than 500 jobs at full build out. Construction on the facility began in January 2021, and production is slated to start in 2023. Separately, the Wind Port was announced in June 2020, and ground was broken in September 2021. “We’re currently engaged in core construction, and we anticipate [the first phase of] the Wind Port will be operational in 2024,” Kennedy said.
Added Becker, “We’re working with EEW on training opportunities for future employees; and the NJEDA is developing programs for local welders, marine coating and other good-paying positions connected with the Marine Terminal and the Wind Port.”
