The New Jersey Economic Development Authority (NJEDA) Board on Wednesday approved the Authority entering into development and sublease agreements with Ørsted Wind Power North America, LLC (Ørsted) for the sublease of up to 34 acres of property at the New Jersey Wind Port (NJWP). Ørsted will be the NJWP’s inaugural tenant and expects to create up to 200 jobs over its lease term. Orsted’s Ocean Wind 1 project is expected to create over 15,000 jobs over its 25-year operational life, according to the company's release.
Ørsted will sublease up to 34 acres of property at the Port for up to two years. Assuming a 24-month sublease term, total rent paid by Ørsted is estimated at over $25 million, representing a strong financial result for New Jersey taxpayers.
Importantly, the agreement with Ørsted includes a mechanism for shared berth use, preserving the NJWP’s ability to attract manufacturing tenants who require access to purpose-built wharves to ship out completed components.
The NJWP, once complete, will be the first and largest facility of its kind in the U.S. With a shortfall in fit-for-purpose port capacity in the U.S, the NJWP is expected to support offshore wind projects up and down the U.S East Coast including serving as a regional hub for turbine component manufacturing. At over 220 acres, the port can accommodate multiple Tier 1 component manufacturers, such as blades, nacelles, towers, and cables.
The NJEDA first issued a Notice to sublease in November 2020 and Ørsted submitted a non-binding offer in December of that year. The two parties executed a Letter of Intent (LOI) in April 2022 and have since been negotiating final terms. The property being subleased to Orsted is owned by PSEG Nuclear and is being leased by NJEDA from PSEG Nuclear on a 78-year basis.
Earlier this month, Governor Murphy signed legislation allowing Ørsted to access federal tax credits that will enable them to complete Ocean Wind 1, the first of two energy projects the developer plans in New Jersey.
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.