Massachusetts Gov. Maura Healey breaks ground on Salem's Offshore Wind Terminal, a critical project aiming to boost clean energy goals with Crowley Wind Services leading the redevelopment. The terminal will stimulate job growth and support offshore wind projects in New England and the Gulf of Maine, positioning the state as a leader in the renewable energy sector.
Photo courtesy of Mass.gov.
Gov. Maura Healey and Lt. Gov. Kim Driscoll celebrated a significant milestone with the groundbreaking of the Salem Offshore Wind Terminal.
Massachusetts Gov. Maura Healey and Lt. Gov. Kim Driscoll were on hand in Salem Aug. 15 to celebrate the groundbreaking of the that city's Offshore Wind Terminal, the state's second such facility after the New Bedford site.
The project involves transforming a former oil- and coal-fired power plant into the state's second wind port, designed to propel Massachusetts 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.
Healy and Driscoll were joined at the event by Salem Mayor Dominick Pangallo and Crowley Wind Services President and CEO Bob Karl. His company is in charge of redeveloping the site and operating the terminal.
Crowley officials also announced that the company has tapped a Massachusetts-based joint venture, made up of D.W. White Construction Co. in Acushnet, and J.F. White Contracting Co., from Framingham, to serve as the project's general contractor. The building team 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," Healy said in her remarks Aug. 15. "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 [CBA], and to the many other stakeholders who are making the pivot to offshore wind."
The CBA is worth nearly $9 million in direct funding assistance to Salem as well as other non-financial benefits provided by Crowley. In all, the agreement's value is about 3 percent of the total estimated project cost.
"I'm thrilled to be able to finally see the Salem Offshore Wind Terminal go from an idea to reality," added Driscoll. "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.
"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."
Massachusetts Methodically Building Its Offshore Wind Industry
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 future offshore wind terminal.
It 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, according to the state's Executive Office of Energy and Environmental Affairs (EEA).
The New Bedford Marine Commerce Terminal, owned and operated by MassCEC, is Massachusetts's first dedicated offshore wind port. Just days before the events in Salem, MassCEC announced a new expansion of the New Bedford facility.
Given the limited availability of suitable ports for offshore wind in the United States, EEA said in a news release that 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 all partnered with Crowley and the city of Salem on getting the new terminal's development under way.
"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 Massachusetts EEA 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."
The Salem wind terminal also promises to provide opportunities for jobs and prioritize hiring local residents, especially those from underserved backgrounds. The EEA said this will include about 150 jobs during construction and at least eight long-term Crowley employees to manage the terminal during operations, with an additional 20-30 jobs operating and maintaining the facility during busier periods.
Once projects are under way, 60 to 150 jobs, from engineers to building trades, will also be available through the terminal's 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.
"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," explained Emily Reichert, MassCEC's chief executive officer. "This project reflects our dedication to building the essential infrastructure, strengthening our regional supply chain, [and] nurturing the talent that will elevate our state as a national leader in offshore wind."
Crowley to Completely Remake Old Salem Industrial Site
Crowley Wind Services signed a lease with MassCEC to use the site as an offshore wind marshalling port, with a focus on projects for Massachusetts. Additionally, the city of Salem has leased a berth and surrounding land for the same purpose.
The company 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 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.
- A transition yard.
- A pre-assembly and load area.
- A wharf and bulkhead.
- Berths for seagoing vessels.
- On-site equipment.
The terminal development plan also includes supporting public access to Salem's harbor and redeveloping a berth for future cruise ship visits.
"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, chair, and CEO of Crowley Corp. "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."
Karl, who also is the official in charge of 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, noted, "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."
The new Salem wind port is expected to begin operating in 2026.
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