Salem Offshore Wind Terminal will Advance Clean Energy Goals in Massachusetts, including through Development of Floating Turbines Gulf of Maine
SALEM — Governor Maura Healey and Lieutenant Governor Kim Driscoll, joined by Salem Mayor Dominick Pangallo and Crowley Wind Services President and CEO Bob Karl, celebrated a significant milestone today with the groundbreaking of the Salem Offshore Wind Terminal. This project involves transforming a former oil- and coal-fired power plant into Massachusetts’ second wind port, which will propel the state toward its clean energy goals and expedite the construction of next-generation wind farms. The terminal is being built specifically to support the construction of offshore wind farms in New England and future floating turbines in the Gulf of Maine.
Crowley also announced today that the company has awarded Massachusetts-based joint venture DW White JF White to be the project’s general contractor. The contractor has executed a Project Labor Agreement with the North Shore Building and Construction Trades and the North Atlantic States Regional Council of Carpenters.
“Coming on the heels of winning $389 million in federal funds for offshore wind transmission in Somerset, the expansion of the port in New Bedford, and now the groundbreaking in Salem, Massachusetts is well-positioned to support the growing offshore wind industry,” said Governor Maura Healey. “These investments in infrastructure are boosting the local economy, creating union jobs and transforming the way we power our homes and businesses. Credit to Lieutenant Governor Driscoll for her vision, Mayor Pangallo for securing a strong Community Benefits Agreement and to the many other stakeholders who are making the pivot to offshore wind.”
“I’m thrilled to be able to finally see the Salem Offshore Wind Terminal go from an idea to reality. During my time in office, it was clear that Salem, with its rich maritime heritage and vibrant community, was the natural choice to become a major offshore wind hub,” said Lieutenant Governor Driscoll. “Now, as we tackle pressing environmental challenges and drive local economic growth, it’s inspiring to see Salem leading the way. This is a proud moment for our city, and I’m honored to witness our vision come to life.”
In February 2023, the Massachusetts Clean Energy Center (MassCEC), Crowley Wind Services, and the City of Salem announced a significant agreement for the transfer of ownership, site improvements, and ongoing operations at the Salem Offshore Wind Terminal. This terminal will be one of the few locations capable of supporting the construction and installation of fixed and floating offshore wind projects in the Gulf of Maine. The New Bedford Marine Commerce Terminal, owned and operated by MassCEC, is Massachusetts’s first dedicated offshore wind port. MassCEC announced its expansion earlier this week. Given the limited availability of suitable ports for offshore wind in the United States, having multiple marshalling ports will be critical in meeting the nation’s offshore wind targets. The Healey-Driscoll administration, MassCEC and the U.S. Maritime Administration have partnered with Crowley and the City of Salem on the terminal.
“Turning this site from a dirty oil- and coal-fired plant into a cutting-edge offshore wind terminal proves what we can achieve when government, industry, and communities work together,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “Instead of hosting facilities that pollute the air, Salem will soon host a port that brings good jobs and an exciting new industry to its shores. Offshore wind is essential for decarbonizing our grid and meeting our ambitious climate goals, and port infrastructure is an important part of that effort.”
“Salem, with its rich coastal heritage, is the perfect place for MassCEC to meaningfully invest. By supporting the Salem Offshore Wind Terminal, we’re not only revitalizing Salem’s waterfront but also advancing Massachusetts’ clean energy future,” said Massachusetts Clean Energy Center CEO Dr. Emily Reichert. “This project reflects our dedication to building the essential infrastructure, strengthening our regional supply chain, nurturing the talent that will elevate our state as a national leader in offshore wind.”
“For centuries, when Salem looked to the future, we’ve looked to the sea and what’s possible on its distant horizons,” said Salem Mayor Dominick Pangallo. “And, as a coastal city, we know full well the cost of inaction when it comes to fighting our climate crisis. Now, on the site where there was once one of the dirtiest coal power plants in America, we’re ready to do our part to achieve a clean energy transition that will power our nation’s future, create green jobs, and strengthen our community for generations to come. We’re grateful to the Healey-Driscoll administration, Crowley, MassCEC, and our community partners and officials who all made this day possible.”
The terminal will provide opportunities for jobs and prioritize hiring local residents, especially those from underserved backgrounds. This will include about 150 jobs during construction and at least 8 long-term Crowley employees to manage the terminal during operations, with an additional 20-30 jobs operating and maintaining the facility during busier periods. When projects are underway, 60 to 150 jobs, from engineers to building trades, will also be available through our tenants and their contractors. Because building the workforce for this new industry is critical, Crowley has already partnered with the Massachusetts Maritime Academy and Salem High School to provide career training.
“The Salem Wind Terminal will be a historic achievement, and we appreciate the trust and partnership by the City of Salem, Commonwealth of Massachusetts and the U.S. Maritime Administration to create a world-class wind terminal that reliably and safely serves the supply chain needs of the wind energy industry,” said Tom Crowley, Chairman and CEO, Crowley Corporation. “This public-private partnership in Salem can be a model for communities and the industry to follow to achieve our commitments to create renewable, sustainable power.”
“We appreciate the trust and collaboration by many local, state and federal stakeholders placed in Crowley Wind Services to develop and operate the Salem Offshore Wind Terminal as a leading hub for maritime and logistics services to help Massachusetts and New England reach their clean energy goals,” said Bob Karl, President and CEO, Crowley Wind Services Holdings LLC, a joint venture between Crowley and Morgan Stanley Infrastructure Partners focused on repurposing and operating existing U.S. port facilities to support wind energy. “The terminal will provide an essential nexus that supports our customers and the broader supply chain in our journey to deliver low-cost, renewable energy. The partnerships we have established across the industry will provide critical investments and jobs in Salem and the North Shore for a generation to come.”
Terminal Design & Operations
Crowley will be responsible for redeveloping and operating the terminal. They have signed a lease with MassCEC to use the site as an offshore wind marshalling port, with a focus on projects for Massachusetts. The City of Salem has also leased a berth and surrounding land for this purpose. Crowley’s Wind Services will improve the site by adding infrastructure for heavy equipment, constructing a new ship berth, upgrading the City’s existing berth, and dredging the harbor channel. The wind port is expected to begin operating in 2026.
The terminal will be a logistics and operations center for turbine pre-assembly, transportation, staging activities and storage of assembly components. Under the anticipated project, the site will contain the following elements:
- Two Laydown Yards
- Transition Yard
- Pre-Assembly & Load Area
- Wharf & Bulkhead
- Berths for Vessels
- On-site equipment
The terminal development plan includes supporting public access to the harbor and redeveloping a berth for future cruise ship visits.
Community Benefits Agreement
The Community Benefits Agreement (CBA) is worth nearly $9 million in direct funding assistance to the community, as well as other non-financial benefits, provided by Crowley. In all, the CBA’s value is about 3% of the total estimated project cost. For comparison, Salem’s two other most recent CBAs – with Footprint Power for the natural gas power plant and with Salem Hospital for their expansion project – were 0.5% and 0.8%, respectively. Highlights of the CBA include:
- $3 million to expand the Salem Public Schools CTE/CTI programs. Crowley will donate equipment from the terminal and from its broader operations around the globe for use as training and educational aids for Salem Public Schools CTE/CTI programs.
- $400,000 in scholarships for offshore wind or maritime-related career paths and educational opportunities, with a preference for Salem residents.
- At least $500,000 to support a new Climate Adaptation Fund to fund City sustainability and resiliency projects. Beginning in 2030, the annual contribution amount by Crowley will increase each year if shore power targets are not achieved.
- A commitment by Crowley to incorporate electrification and shore power technologies at the port as they become technologically feasible, with a goal of achieving 100 percent port electrification by 2040.
Oversight of the CBA’s implementation will be carried out by a working group including representatives from Crowley, the City, the community at large, the Salem Harbor Port Authority, and Salem Public Schools. The working group will meet quarterly and receive annual CBA reports from Crowley, which will be published publicly.
“The transformation of this port is a historic step forward for environmental justice in Massachusetts. Salem is a community historically burdened by a coal- and gas-powered power plant, and we will soon proudly serve as hosts for the construction of offshore wind FARMS,” said Bonnie Bain, Offshore Wind Program Manager Salem Alliance for the Environment. “Salem Alliance for the Environment (SAFE) worked closely with our community allies at the Latino Leadership Coalition, League of Women Voters, and surrounding neighborhood groups, namely the Point and Historic Derby Street, to build a coalition in support of offshore wind with environmental justice principles at the heart of our efforts. We’ve been at the table to secure significant investments in public needs and workforce development. Salem again finds itself at the nexus of a global transformation, rooted in community activism and justice.”
“Today the labor movement, private developers, government, and community members come together to celebrate the dawn of a new era, where clean energy jobs will be created under a historic Project Labor Agreement for the Salem Offshore Wind Terminal,” said Rodrigo Badaro, Business Representative for the Painters and Allied Trades District Council 35. “As a commercial and industrial painter and proud member of the Painters and Allied Trades District Council 35, Project Labor Agreements like this one led to a career that changed my family’s life and allowed me to live the American Dream to its fullest. The clean energy jobs that will be created through this project will have the potential to do the same for members of our communities.”
Statements of Support
Congressman Seth Moulton:
“I’m pleased to celebrate this milestone with Governor Healey, Lt. Governor Driscoll, and all of the leaders who have made this project possible. This will not only help to diversify and decarbonize our electrical grid, which we need now more than ever—it will also bring jobs to Salem. It is a great example of effective public-private partnership, and how we can transform old infrastructure into new to meet the needs of the moment. Wind is one piece of the energy puzzle, and it is imperative that we pursue a diversity of clean energy solutions.”
House Speaker Ronald J. Mariano (D-Quincy):
“Expanding the Commonwealth’s offshore wind infrastructure is an essential step in the effort to transform Massachusetts into a regional hub for the offshore wind industry and move us closer to achieving our net zero emissions goal. I’m pleased that with today’s groundbreaking of the Salem Offshore Wind Terminal, Massachusetts will now have two ports to service current and future offshore wind projects, while creating hundreds of new jobs for our residents. I would like to thank the Healey-Driscoll Administration, the City of Salem, and the folks at Crowley Wind Services for their contributions to advancing our clean energy economy.”
Senate President Karen E. Spilka (D-Ashland):
“Today, we celebrate a major step toward protecting the future of our Commonwealth and our planet with the groundbreaking for the Salem Offshore Wind Terminal. Reaching our goal of net-zero carbon emissions by 2050 requires us to embrace alternative energy sources, and today’s groundbreaking is another important step towards realizing that goal. I’m grateful to my colleagues in the legislature, the Healey-Driscoll Administration, and the leaders at Crowley Wind Services for making this a priority.”
Senator Joan Lovely, Assistant Majority Leader (D-Salem):
“Today, we take a huge step towards supporting the Commonwealth’s clean energy goals, while creating good union jobs and an economic boost to the region. I have been excited to support this project from its inception, and I look forward to supporting it into a sustainable clean future.”
State Representative Jeffrey N. Roy (D-Franklin), House Chair of the Joint Committee on Telecommunications, Utilities and Energy:
“The Salem Offshore Wind Terminal is an example of the good that can be accomplished by innovative public-private partnerships in pursuit of our clean energy and climate goals. I commend the Healey-Driscoll Administration, the City of Salem, MassCEC and Crowley Wind Services for their collaboration on the Commonwealth’s second major offshore wind port terminal, which will further accelerate the growth of this important source of renewable generation in New England. The terminal’s development on the site of a decommissioned coal-fired energy plant is emblematic of the transformative opportunity for economic growth and job creation presented by the energy transition.”
State Representative Manny Cruz (D-Salem):
“Today marks a historic moment for the City of Salem as we break ground on the Offshore Wind Terminal project in partnership with Crowley. I want to thank the Healey-Driscoll Administration, the federal delegation, local Salem officials, and our legislative leadership for their investment and support of this project, which will bring green jobs and economic prosperity to our region. This public-private partnership with Crowley and Avangrid is a monumental step towards securing our clean energy future. Salem harbor has always played a pivotal role in shaping the future of Massachusetts, and with this project, we are once again leading the charge in the emerging climate industry. As the State Representative for the City of Salem, an environmental justice community, I am incredibly proud to continue to support this project to usher in a new era of prosperity.”
