Skipjack Wind 2: Ørsted Wins 846 MW Offshore Wind Contract in Maryland

Credit:  Fokke/AdobeStock
Credit: Fokke/AdobeStock

The Maryland Public Service Commission has awarded a 20-year Offshore Renewable Energy Certificate (OREC) to Ørsted’s largest bid in the solicitation, the Skipjack Wind 2 Offshore Wind Farm with a capacity of 846 MW. Skipjack Wind 2 will generate enough green electricity to power 250,000 households in the Delmarva region.

Ørsted plans to build Skipjack Wind 2 and the previously awarded Skipjack Wind 1 (120 MW) as one project with expected commissioning in 2026. The 2026 OREC price for Skipjack Wind 2 in 2012 levelised terms is USD 71.61 per MWh with a 3 % annual escalator, Orsted said.

Martin Neubert, Deputy CEO and Chief Commercial Officer at Ørsted, said: “The win in Maryland manifests our market leading position in the US with a total of approximately 5 GW of awarded offshore wind projects, which unlocks significant portfolio benefits in procurement, construction and operations. By adding this value-creating project to our portfolio, Ørsted has been awarded a total of 4.5 GW of offshore wind capacity in 2021, thereby growing our firm offshore wind capacity worldwide to almost 20 GW.”

David Hardy, CEO of Ørsted Offshore North America, said: “We are honored that Maryland’s Public Service Commission has selected Ørsted as a trusted partner in helping the state reach its ambitious renewable energy goals, and we’re proud that we’re once again able to leverage our market-leading portfolio of offshore wind projects to attract major supply chain players to set up local manufacturing. Skipjack Wind 2 will contribute significantly to Maryland’s goal of sourcing 50 % power from renewable energy sources by 2030 and position Maryland as a long-term home to an offshore wind workforce. We look forward to delivering on our commitments now, and well into the future, so that Maryland’s offshore wind industry thrives for decades to come.”

Cable & offshore wind tower manufacturing facilities in Maryland

According to Ørsted, Skipjack Wind 2 will generate approximately USD 510 million in supply chain investments in Maryland and create thousands of jobs in manufacturing and operations and maintenance. 

With Skipjack Wind 2, Ørsted is bringing a commitment from Hellenic Cables to locate the US’s first fully integrated subsea array cable manufacturing facility in Maryland, the company said.

Ørsted also said it would facilitate the construction of a"world-class" offshore wind tower manufacturing facility in Maryland, which will be able to produce 100 wind turbine towers annually. 

"Ørsted is already developing Maryland’s first offshore wind operations and maintenance facility in West Ocean City, and in October established Maryland’s first offshore wind steel fabrication centre at Crystal Steel Fabricators in Federalsburg," Ørsted said. 

Subject to contract signing and Ørsted’s final investment decision, Ørsted expects to commission Skipjack Wind 2 in 2026.

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