Last week at its monthly Hampton Roads Planning District Commission meeting, a new organization, the Virginia Offshore Wind Energy Coalition, introduced itself and presented a report regarding the status of Atlantic coast offshore wind projects, the economic development opportunities for Hampton Roads, and their legislative strategies for the 2010 General Assembly. (Click here to read entire report.)

According to the report, the Department of Energy estimates long term offshore wind energy potential off Virginia’s shoreline at 6572 megawatts. The Virginia Coastal Energy Research Consortium (VCERC) estimates the near term offshore wind energy potential at 3500 megawatts with a capital investment of up to $10 billion.

The Federal government’s Mineral Management Services (MMS) released its offshore renewable energy development regulations in June this year. Already two companies have submitted lease applications for projects off Virginia’s coasts.

Capital investment in the East Coast offshore wind energy industry for the coming 10 years is expected to be in excess of 15 billion. And everyone up and down the Atlantic seaboard wants a piece of this action.

New Jersey and Rhode Island head the pack with potentially the first commercial utility scale projects expected to be online as early as 2012. Procurement of wind turbines, installation vessels and other main components of these first projects will occur in the coming 6-12 months.

VCERC estimates $2.4 billion investment in the local economy. It is expected that more than 50% of offshore wind energy scope of supply will be manufactured locally. The thousands of jobs include engineering and fabrication of installation and service vessels, fabrication of towers and foundation monopoles and heavy turbine components. Amongst its East Coast neighbors, Virginia and specifically Hampton Roads with its deep water port and ship building industry, is envisioned as being the manufacturing hub for the industry.

With impending renewable energy standards and cap-and-trade requirements imposed by both the Federal and state government, Virginia’s offshore wind will provide a clean energy source that keeps these carbon credits within the Commonwealth, instead of importing them from the Midwest wind energy sources which involves building more transmission lines.

For more information, contact Ann Flandermeyer at 757-675-1876 or annflan@principle-advantage.com.