Offshore Cape Wind project catches a break
Feds issue study on controversial wind farm
By Steve Gelsi, MarketWatch
Last update: 12:00 p.m. EST Jan. 17, 2009
NEW YORK (MarketWatch) -- The developer of the controversial wind farm off the coast of Nantucket vowed to begin construction as early as 2010 now that the Cape Wind project has cleared a years-long environmental review by the federal government.
The Interior Department's Minerals Management Service said the $1.2 billion plan to build 130 turbines in Nantucket Sound would reduce regional greenhouse gas emissions that contribute to climate change by 880,000 tons per year, create hundreds of jobs and ultimately supply most of the electricity needs for Cape Cod.
While the 2,800-page Federal Environmental Impact Statement marks the end of a roughly eight-year process for wind developer Jim Gordon of Cape Wind Associates, it doesn't contain a formal OK for the project.
That may come after a 30-day mandatory waiting period before the MMS may issue a Record of Decision. The decision will state whether the government plans to issue Cape Wind Associates a lease for construction, operation, and eventual decommissioning of the proposed wind facility.
Gordon nevertheless hailed the document as a major milestone in the project
"Massachusetts is one major step closer to becoming home to America's first offshore wind farm and becoming a global leader in the production of offshore renewable energy," Gordon said in a statement issued Friday. "This moment would not have arrived without the steadfast support of environmental, labor, health and citizen advocacy groups throughout the region."
Opponents of the project, which include Sen. Ted Kennedy (D-Mass.) and other residents in the area, vowed to continue their fight. They maintain the 400-foot turbines would kill birds, threaten sea life, and hurt tourism and fishing.
"I do not believe that this action by the Interior Department will be sustained," Kennedy said in a statement issued to the Associated Press. "By taking this action, the Interior Department has virtually assured years of continued public conflict and contentious litigation."
The Federal Aviation Administration is still reviewing the project and the Interior Department's inspector general is investigating the Minerals Management Service's handling of Cape Wind, Kennedy said.
Meanwhile, other proposals for offshore wind farms are in the works both in Delaware and Rhode Island, among other places.
This summer, Bluewater Wind, a unit of private equity firm Babcock & Brown, signed the nation's first offshore power purchase agreement in a pact with Delmarva Power, a unit of Pepco Holdings Inc., to build wind turbines off the coast of Delaware.
Proponents of the project plan to build the turbines farther offshore to reduce complaints from coastal residents.
Offshore wind in the U.S. remains a plentiful resource. It also offers proximity to major urban areas along the East Coast, where electricity demand remains strong. End of Story
Steve Gelsi is a reporter for MarketWatch in New York.
marketwatch.com{A8870593-464D-48C2-B926-BBA3FB362F9F}&dist=hplatest&print=true&dist=printMidSection |
