Project Veer is leveraging the advanced manufacturing legacy of Virginia’s Southwest to explore entry points for the region’s manufacturers into the onshore and offshore wind supply chains.
The project team, which includes global energy consulting firm Xodus, is collaborating with industry experts, utilities Appalachian Power and Dominion Energy, public sector partners and GO Virginia Region One’s economic and workforce development organizations as well as local companies poised to enter this new market. Region One is the only GO Virginia region with energy and minerals as a target industry in its Growth and Diversification Plan. Project Veer builds on this priority by connecting the new energy economy to Southwest Virginia’s manufacturers in search of ways to expand their businesses. In addition, Project Veer complements robust efforts currently underway by the Commonwealth of Virginia and the Hampton Roads Alliance to develop the U.S. East Coast offshore wind supply chain.
Background
While the project will address both onshore and offshore wind supply chain needs, there will be priority placed on the offshore wind industry, given the pipeline of projects in place along the East Coast. For this burgeoning industry, the American Wind Energy Association estimates up to 30,000 MW of capacity, 83,000 jobs, and $25 billion of annual economic output by 2030.
When fully constructed in 2026, Dominion Energy’s Coastal Virginia Offshore Wind (CVOW) project off the cost of Virginia Beach will deliver up to 9.5 million megawatt hours per year of clean, renewable energy to the grid, powering up to 660,000 Virginia homes and avoiding as much as 5 million tons of carbon dioxide annually. The 2.6-gigawatt wind farm will be the largest offshore wind project in the United States. It will include up to 176 turbines and builds off of the current two-turbine pilot project which serves as the first installed in federal waters and the only one developed and owned by an electric utility.
The CVOW project also serves as a catalyst for a new domestic supply chain that will serve the U.S. East Coast wind industry, creating hundreds of good-paying clean energy jobs, millions in tax revenues and hundreds of millions in economic benefits. Additionally, Avangrid’s 2.5-gigawatt Kitty Hawk Wind project off the cost of North Carolina helps create critical mass for Virginia’s Hampton Roads region to serve as a strategic hub.
Furthermore, the Commonwealth of Virginia has set a goal of 30% by 2030 and 100% by 2050 for its electric energy to be provided by renewable sources. This creates a generational opportunity for Virginia to create a new workforce to support this industry. As the renewable energy goals will displace traditional sources of energy, the opportunity to upskill the workforce, drive diversity, equity and inclusion and create economic opportunity in GO Virginia Region One is paramount. Understanding the supply chain for renewable energy, where the gaps are and how to close those gaps will drive this development. Focused, organizationally-sound initiatives will come out of Project Veer’s analysis to serve as an economic development roadmap.
Renewable energy developers need local partners to build out the industry and support projects. Developers and original equipment manufacturers look to local suppliers for a wide range of products and services, from highly technical components to services such as transportation in support of project delivery. There is a willingness by developers and their major suppliers to help local companies enter the industry and work with stakeholders to implement workforce development programs. Local support lowers risk and helps ensure the timely delivery of projects. It is important to note that inclusion in the supply chain may result in a local partner being involved in numerous projects, not just those in the Commonwealth.
Funding for Project Veer has been made possible by the GO Virginia Region One Council, the Virginia Tobacco Region Revitalization Commission and Coalfield Strategies with support from Appalachian Power and Dominion Energy.
Milestones and Deliverables
December 14, 2021 — Kick off project with the Southwest Virginia Energy Research and Development Authority.
Late January 2022 — Complete analysis on the current GO Virginia Region One supply chain in a wind industry taxonomy, analyze wind project schedules and status to detail industry timing, continue stakeholder engagement and company identification/outreach.
Mid-February 2022 — Deliver a report detailing the wind energy industry supply chain by including adjacent industries.
March 8, 2022 — Present initiatives for discussion and inclusion with stakeholders.
Late March 2022 — Draft final report with findings and recommendations for internal review.
March 30, 2022 — Present final report, findings and recommendations to the GO Virginia Region One Council and the region’s stakeholders and companies.
Contact
If you have any questions, please contact Will Payne, Managing Partner of Coalfield Strategies via email.