Offshore wind is in rapid expansion in the U.S. as stakeholders seek to reach the ambitious target set by President Biden calling for 30GW of offshore wind energy by 2030. Virginia Beach is leading the way, with the first wind farm installed in federal waters and only one of two operational projects in the U.S. today.

The East Coast is by far the most attractive place to be in the U.S. offshore wind market as lease areas have been identified and executed in federal waters as far north as Massachusetts and as far south as the Carolinas. Among nearly 30 different projects, one in particular has received a great deal of attention: Coastal Virginia Offshore Wind (CVOW), located 27 miles off the coast of Virginia Beach.

A second large-scale wind farm, Kitty Hawk Offshore, is an immediate neighbour to CVOW, located 41 miles south-east of the Virginia Beach oceanfront. These projects represent two of the largest in the U.S., both equally contributing to a rapidly growing offshore wind hub in the Central Atlantic region.

The City of Virginia Beach is taking the spotlight not only due to its proximity to these notable projects, but also because it provides a central location for strategic access to additional wind farms that will find a home up and down the U.S. East Coast in years to come.

The Port of Virginia also represents a powerful asset for Virginia Beach. It is one of only two East Coast ports with zero air draft and horizontal clearance and is therefore uniquely positioned to support offshore wind construction. Plus, its facilities offer deep water access at a depth of 50 feet, with channels currently being deepened to 56 feet, which will allow Charybdis, a wind turbine installation vessel, to use it as a home port when it starts erecting the CVOW wind turbines at sea in 2024.

Seajacks, a provider of installation and maintenance vessels to the offshore wind sector, announced earlier this year its plans to establish an operational base in Virginia Beach so it can support the construction and operation of Charybdis.

“Virginia is at the heart of the burgeoning U.S. offshore wind energy sector and we are delighted to open our U.S. office in Virginia Beach,” said Blair Ainslie, CEO of Seajacks, in a recent announcement. “This office will soon become the hub for our U.S. activities. Our teams have all been impressed with the local workforce, supply chain and facilities available. Virginia is building a new industry in offshore wind and we are delighted to be involved.”

As an increasing number of domestic and foreign firms pursue opportunities presented by the developing offshore wind sector in the U.S., many are considering Virginia Beach as the ideal place to do business due to a series of compelling assets:

  • The CVOW pilot project, which became energised in 2020, represents one of only two wind farms currently operational in U.S. waters. Some projects can take a decade to go from the sale of a lease to an operational farm, while some take even longer or never make it past the conceptual phase. Virginia Beach already has two turbines operating off its coast and will have 176 more by 2026.

  • Virginia Beach offers the quickest access to CVOW. Vessels can reach the wind farm in roughly two hours through various inlets on the coast that feed directly into the Atlantic.

  • When compared to other offshore wind markets to the north, the cost of doing business is much more appealing in Virginia Beach. Labour costs, utility rates, and taxes are generally lower. The corporate income tax rate, currently at 6%, has not changed since 1972. In addition, Virginia Beach benefits from the pro-business environment granted by the Commonwealth of Virginia, which consistently ranks as the best state for business, more than any other state (CNBC, 2021).

  • The Virginia Beach area is home to a strong maritime industry and the largest Naval base in the world, which together produce a steady stream of qualified workers. The region’s colleges and universities, along with numerous trade schools, produce 100,000+ graduates every year, contributing to the offshore wind talent pipeline.

Virginia Beach is helping companies in the offshore wind supply chain establish a presence in the City and take advantage of all the opportunities that will come as offshore wind farms continue to develop along the East Coast.

The key is to get in early on an industry that is already growing by leaps and bounds.

For more information about opportunities at Virginia Beach, contact the Department of Economic Development at www.yesvirginiabeach.com/ie or by calling +1-757-385-6464.