USA - Bluewater to erect wind turbine park o be built off N.J. coast

New Jersey utility regulators chose a PSEG-backed wind-power venture Friday for a 350-megawatt offshore pilot project, potentially giving Bluewater Wind's Delaware startup a new neighbor in the booming industry.

Bluewater, a company that already plans to build more than 60 turbines off Rehoboth Beach, was a runner-up in the New Jersey Board of Public Utilities competition for up to $19 million in state assistance.

Bluewater spokesman Jim Lanard said more offshore wind opportunities already have emerged in New Jersey and elsewhere. Gov. Jon Corzine's office, he said, invited the company to meet with energy officials after the utilities board meeting Friday "to talk about state policies that would support additional wind parks off the coast."

"We're feeling really optimistic and excited about the prospect of developing a Delaware and a New Jersey project, perhaps simultaneously, so that our mobilization of resources can provide the best economies of scale for ratepayers," Lanard said.

Meanwhile, the state of Maryland earlier this week collected formal "expressions of interest" for alternative energy projects to serve state and county government buildings -- including offshore wind. Bluewater submitted its entry Wednesday.

"This is a great day," said Jeff Tittel, chairman of the Sierra Club New Jersey Chapter. "We'd like to see at least another wind-farm project, or more. It's a lot cheaper than building a new nuclear plant."

New Jersey's utilities board chose Garden State Offshore Energy for that state's first ocean wind farm. The $1.1 billion plan by Garden State -- a joint venture of PSEG Renewable Generation and Deepwater Wind -- calls for 96 turbines off Atlantic City and Avalon, supported by the state's $19 million startup subsidy.

Bluewater had proposed a 348-megawatt wind farm off Atlantic City.

"PSEG believes that to meet the challenges of climate change, we need to move forward in three areas -- expanding energy efficiency and conservation, investing in renewables and planning for additional clean central station power," said Ralph Izzo, chairman, CEO and president of PSEG. "We believe that offshore energy has great potential to bring clean energy and jobs to New Jersey."

PSEG spokesman Paul Rosengren said the wind farm's electricity would be sold to the regional market, or possibly to individual wholesale buyers, such as food-store chains hoping to market their businesses as environmentally friendly.

Corzine was expected to address the state's long-range energy plan separately as early as next week, possibly with an increase in the state's long-range wind goal, now set at 1,000 megawatts. Environmental groups have urged a 3,000-megawatt target by 2020. Current goals call for at least 20 percent of electricity needs to come from renewables by the same year.

Bluewater already has a contract to build an $800 milllion wind farm with a capacity of 200 megawatts in federal waters off Rehoboth Beach, with electricity earmarked for Delmarva Power. The company is seeking other business, including with Maryland, that could triple the size of the operation and expand to a second wind farm off Ocean City, Md.

Delmarva's contract with Bluewater includes assurances that the utility will get "most-favored" rates if an expansion creates lower costs for other buyers. Under the current deal, Delmarva customers will pay about $5 extra per month over the 25-year life of the contract, compared with electricity from conventionally fueled plants.

Wind-power advocates have argued that rising fossil fuel costs and tougher pollution controls will drive up rates for regular plants, eventually making wind and other clean fuels more competitive.

Also in the running in New Jersey was Fishermen's Energy of New Jersey LLC, which planned to build eight turbines three miles off Atlantic City and 66 turbines six miles out.

In Delaware, Department of Natural Resources and Environmental Control Secretary John A. Hughes said he hopes Bluewater considers development of consolidated on-shore work and management centers for wind projects across the region. The wind company's parent, Babcock & Brown, already has made some commitments to making Delaware a hub for offshore wind enterprises.

"We can offer really advantageous shore facilities," Hughes said. "There's no particular reason to build two assembly sites capable of handling 400-ton objects 50 miles from each other."

Five countries currently have operating wind turbines offshore: Denmark, Sweden, the United Kingdom, the Netherlands and Ireland. Germany also is developing offshore turbines.

Onshore turbines currently dominate the American wind market, producing 19,500 megawatts across 35 states, or about 1 percent of national electricity consumption.