Sweden-headquartered construction company Skanska has signed a USD 223 million contract with the Virginia Port Authority for the redevelopment of the Portsmouth Marine Terminal, which will support the 2.6 GW Coastal Virginia Offshore Wind (CVOW) project.
Construction began July 2022 and completion is scheduled for 2025, Skanska said in a press release on 16 August.
The project will redevelop approximately 72 acres of the 287-acre Portsmouth Marine Terminal for use as an offshore wind staging port which will improve 1,500 feet of an existing 3,540-foot wharf.
In August 2021, the Port of Virginia reached an agreement to lease a portion of the terminal to Dominion Energy for the development of the 2.6 GW CVOW project, the country’s largest offshore wind project, which is currently undergoing federal permitting and was recently approved by Virginia State Corporation Commission.
Under the agreement, Dominion Energy will use 72 acres of the deep-water, multi-use marine cargo Portsmouth Marine Terminal as a staging and pre-assembly area for the foundations and turbines that will be installed 27 miles off the coast of Virginia Beach.
The lease term is ten years—valued at nearly USD 4.4 million annually—and includes an option for two five-year renewals.
The lease agreement also includes significant upgrades to ensure the terminal can handle the weight of the large components that will be deployed to build the offshore wind turbines.
In December 2021, the Port of Virginia secured a USD 20 million grant from the US Department of Transportation (DOT) for upgrades to the Portsmouth Marine Terminal that will support offshore wind development.
The grant was said to fund creation of a wind turbine staging area in the uplands, adjacent to one of the wharves, and a second storage area where monopiles and other project components will be stored.
The staging and storage areas also require installation of piles to increase the load-bearing capacity of the site, new pavement to support the heavy components that will be imported through the facility, stormwater and drainage infrastructure improvements, and site utility work.