Avangrid Renewables’ Commonwealth Wind Joint Venture Selected by Massachusetts to Help State Meet Its Clean Energy Goals

Rhea-AI Summary

Avangrid Renewables announced its joint venture offshore wind project, Commonwealth Wind, selected in Massachusetts' third offshore wind procurement. This 1,232 MW project will create over 11,000 jobs and power 750,000 homes yearly. The initiative transforms coal-fired sites into clean energy hubs, expanding Avangrid's offshore wind portfolio to 2,400 MW. It also establishes the state's first offshore wind manufacturing facility and a second offshore wind port, marking a significant step towards the U.S. offshore wind target of 30 GW by 2030.

Positive

• Commonwealth Wind project expected to create over 11,000 jobs.
• Generates enough energy to power 750,000 homes annually.
• Expands offshore wind portfolio to 2,400 MW.
• Investment in clean energy manufacturing and infrastructure in Massachusetts.
• Supports Massachusetts' 50% carbon reduction target by 2030.

Negative

• None.

• Project will create more than 11,000 jobs, powering 750,000 homes annually with 1,232 MW of clean offshore wind energy
• Accelerates energy transition by transforming two coal-fired power plant sites into clean energy hubs
• Brings first offshore wind manufacturing facility to Massachusetts and delivers the Commonwealth’s second offshore wind port to North Shore
• AVANGRID’s portfolio of offshore wind development projects grows to 2,400 MW

ORANGE, Conn.--(BUSINESS WIRE)-- Avangrid Renewables, a subsidiary of AVANGRID, Inc. (NYSE: AGR), announced today that its joint venture offshore wind project, Commonwealth Wind, has been selected as part of Massachusetts’ third offshore wind competitive procurement process. The 1,232 megawatt (MW) project, New England’s largest offshore wind project to date, will create 11,000 full time equivalent jobs over the project’s lifetime and generate enough energy to power 750,000 homes annually.

Salem Harbor Redevelopment Rendering (Graphic: Business Wire)

“Commonwealth Wind will power hundreds of thousands of homes and businesses in Massachusetts with clean energy, creating thousands of local jobs across the supply chain. It will also be a key project in helping the U.S. to achieve the 30 GW offshore wind target by 2030,” said Chairman and CEO of Iberdrola and Chairman of AVANGRID Ignacio Galán. “After investing $15 billion in 8 GW of onshore wind and solar, we are now leading the way in offshore wind energy in the U.S. with the construction of Vineyard Wind One and Park City Wind. With 15 years of experience delivering projects across the world, Iberdrola and AVANGRID are working hard to ensure our investments are transformational for the environment and the economy. Our U.S. offshore wind pipeline alone could deliver over $15 billion of investment in the coming years.”

“Commonwealth Wind is part of AVANGRID’s vision to build a clean energy economy through community investment and reimagination. This strategic project will diversify the energy workforce with good paying jobs while providing cost-effective, renewable energy,” said AVANGRID CEO Dennis V. Arriola. “The energy transition requires real commitment, expertise and vision and we thank the Baker Administration and the people of Massachusetts for their continued support as we work together to make this collective dream a reality.”

With the addition of Commonwealth Wind to AVANGRID’s existing portfolio of offshore wind development projects, the company will build, own and operate more than 2,400 MW of offshore clean energy once the joint venture restructuring with Copenhagen Infrastructure Partners and Avangrid Renewables closes.

Commonwealth Wind includes two transformative initiatives that convert former coal-fired power plant sites into clean energy centers including the creation of the state’s first offshore wind manufacturing facility at Brayton Point in Somerset and the establishment of a second offshore wind port in Salem Harbor, both of which will provide an anchor for building long-term jobs to service this new industry.

“This is more than just one project, it is part of an effort to build a clean energy infrastructure including the transformation of ports around our state as well as jobs and training that will support this clean energy industry for decades to come,” said President and CEO of Avangrid Renewables Offshore Bill White. “We are proud that Commonwealth Wind will help realize the vision of Governor Baker and the leaders of the Massachusetts Legislature in pioneering this new American industry.”

Transformative Partnerships

Commonwealth Wind will catalyze two major investments in Massachusetts communities that will generate significant long-term jobs and economic development:

Prysmian Cable Manufacturing Facility: Prysmian Group, a leading international subsea cable manufacturer, intends to build a state-of-the-art manufacturing facility for subsea transmission cables at Brayton Point, the former 1,600 MW coal-fired power plant in Somerset, MA.

Salem Offshore Wind Port: The Commonwealth Wind proposal enables Crowley Marine, in partnership with the City of Salem, to redevelop 42 acres surrounding Salem Harbor Station to serve as an offshore wind assembly and turbine staging port for the Park City Wind and Commonwealth Wind projects.

Clean Energy and Environmental Benefits

Commonwealth Wind offers the following additional clean energy and environmental benefits for the Commonwealth’s electricity consumers:

• Equivalent of 750,000 Massachusetts homes powered annually;
• Contributes to Massachusetts’ 50% carbon dioxide reduction target by 2030;
• Carbon dioxide reduction equivalent of taking 323,000 cars off the road;
• 1 x 1 nautical mile layout to accommodate fishing activities and promote safe navigation across project area; and,
• First-in-the-nation partnership to supply offshore wind power to municipal utilities in conjunction with Energy New England (ENE) which will enable Massachusetts Municipal Light Plants (MLPs) to purchase offshore wind power for the energy portfolios of 20 MLPs across the state.

Investments in Workforce Diversity, Communities, and Innovation

Commonwealth Wind brings a ground-breaking set of commitments and partnerships to advance workforce diversity, community investment and technological innovation including:

• Appointing a Chief Diversity Officer to lead diversity/equity/inclusion project commitments;
• Negotiating a Project Labor Agreement paying prevailing wages with hiring goals for women, Black and Indigenous People of Color (BIPOC) as well as local employees;
• Partnering with local organizations to bring diverse workers and businesses into the offshore wind industry;
• $15 million in directly-funded initiatives for diversity/equity/inclusion in workforce training and supply chain development;
• Requiring all contracts over $10 million to include local hiring plans that include diversity components, including a supplier diversity plan; and,
• $20 million toward community, environmental and educational initiatives and support of new technology and innovation.

Operations & Maintenance in New Bedford

The historic City of New Bedford will serve as the site for Avangrid Renewables’ Offshore Wind Control Center, a state-of-the-art facility that will provide remote control monitoring for the turbines, electrical service platforms and other offshore/onshore assets. The project also brings a first-in-nation, world class service and maintenance hub to New Bedford through a partnership with Semco Maritime, a leading international service provider that will employ up to 40 people at their new facility.

About AVANGRID: AVANGRID, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $39 billion in assets and operations in 24 U.S. states, AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs approximately 7,000 people and has been recognized by Forbes and Just Capital as one of the 2021 JUST 100 companies – a list of America’s best corporate citizens – and was ranked number one within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2021 for the third consecutive year by the Ethisphere Institute. For more information, visit www.avangrid.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211217005513/en/

MEDIA:

Zsoka McDonald

zsoka.mcdonald@avangrid.com

203-997-6892



INVESTORS:

Patricia Cosgel

Patricia.cosgel@avangrid.com

203-499-2624

Source: Avangrid Renewables

FAQ

What is the Commonwealth Wind project by Avangrid (AGR)?

The Commonwealth Wind project is a 1,232 MW offshore wind initiative in Massachusetts, expected to create over 11,000 jobs and power 750,000 homes annually.

How many jobs will the Commonwealth Wind project create?

The Commonwealth Wind project is expected to create over 11,000 full-time equivalent jobs.

What is Avangrid's (AGR) total offshore wind capacity after the Commonwealth Wind project?

With the Commonwealth Wind project, Avangrid's offshore wind portfolio will grow to 2,400 MW.

What are the environmental benefits of the Commonwealth Wind project?

The project will help Massachusetts achieve its 50% carbon reduction target by 2030 and power 750,000 homes with clean energy.

Where will the offshore wind manufacturing facility be located?

The first offshore wind manufacturing facility will be located at Brayton Point in Somerset, Massachusetts.

When is the Commonwealth Wind project expected to contribute to the energy grid?

The project is part of Massachusetts' third competitive procurement process for offshore wind, contributing significantly to the energy grid.