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Virginia inked offshore wind agreement with Denmark right before Northam left office, hoping to expand industry

Over 30 miles off Virginia Beach are Dominion Energy's first two turbines, which will be part of their eventual wind farm. As seen September 27, 2021. (Stephen M. Katz/The Virginian-Pilot)

Posted on January 25, 2022

Denmark is far ahead of Virginia on offshore wind.

While the commonwealth is embarking on its first offshore wind development off the Virginia Beach coast, Denmark has spent decades building and refining its suite of more than 6,000 turbines.

Virginia officials hope to learn from the European country what works, and what doesn’t.

The two governments recently entered an agreement to share knowledge and resources about their respective offshore wind efforts.

Gov. Ralph Northam signed the memorandum of understanding with Denmark right before leaving office in mid-January.

“We have purposely worked to position Virginia as a leader in offshore wind,” he said in a statement at the time. “Denmark has the highest proportion of wind power in the world, and we can learn a great deal from their experience.”

It’s unclear what Gov. Glenn Youngkin plans to do with the agreement. His press secretary did not respond to a request for comment.

Jennifer Palestrant, chief deputy of the Virginia Energy department, said in the press release announcement that Virginia is “all in for offshore wind” and that the cooperation would make an impact on future development.

Tarah Kesterson, spokesperson for the department, said in an email last week that they have not received guidance on how the new administration would impact directives such as this one.

“The agreement with Denmark is pretty simple,” she wrote. “Denmark will help Virginia and Virginia will help Denmark when it comes to offshore wind development.”

Virginia hopes to learn from the country’s experiences and gain information and connections on how to navigate the equipment supply chain needed for such an undertaking, she said.

The pair also will consider bigger-picture items such as renewable energy strategy, mitigating climate change and energy security, according to the news release.

Dominion Energy’s planned offshore wind farm about 27 miles off the Oceanfront is undergoing regulatory approvals.

Two pilot turbines went up in 2020 at the federally leased site, an area the size of roughly 85,000 football fields. Dominion’s project would add 176 turbines by 2026, enough to generate power for about 660,000 homes.

Denmark played a role in Virginia’s budding industry from the start.

In recent years, Danish firm Rose Holm Inc. built a facility in Richmond to produce industrial fasteners with a focus on offshore wind, while Orsted, a Danish green energy company, constructed Dominion’s pilot turbines.

Orsted also leased up to 40 acres at the Port of Virginia through 2026, which the company plans to use to stage equipment at the Portsmouth Marine Terminal for offshore projects around the Mid-Atlantic.

The memorandum of understanding is a culmination of years of discussion between the two governments, said Hayes Framme, who leads government relations and communications for Orsted North America in Richmond.

Danish leaders are looking to drive their businesses into expanding markets around the world, and see the U.S. as potential, Framme said.

Virginia officials have been receptive, including a delegation attending a pre-pandemic weeklong tour of the industry in Denmark. The state also naturally looked to Danish entities because that’s where a lot of expertise originated as “ground zero of the offshore wind industry,” he said.

Orsted, for example, built Denmark’s — and the world’s — first offshore wind farm in 1991.

“Hopefully Virginia and the Danish government can continue to collaborate, which will lead to greater opportunities for Danish companies and more broadly for the industry,” Framme said.

Dan Jorgensen, Denmark’s climate minister, told a Copenhagen newspaper last week that it makes sense to share the country’s experiences with others looking to reduce carbon dioxide emissions.

“Virginia’s jaunt into offshore wind will help open and mature markets involving green energy technology from countries like Denmark,” he said.

The agreement is part of the Danish Energy Agency’s Energy Governance Partnership, according to the website of State of Green, a public-private Danish partnership that facilitates international relations on sustainability.

Virginia is the optimal location for the East Coast offshore wind supply chain to flourish, the partnership wrote, comparing the role of the Port of Virginia to a seaport town called Esbjerg in Denmark, a wind power shipping hub.

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