Mayor Adams Announces Agreement to Transform South Brooklyn Marine Terminal Into Leading Offshore Wind Hub

March 3, 2022

Video available at: https://youtu.be/QO5ZY8_ftTw

Terminal to Become One of Largest Offshore Wind Port Facilities in Nation

Agreement Will Create Major Economic Opportunity and Investments, Support 13,000 Local Jobs Over Time and Over 1,000 at SBMT

NEW YORK – New York City Mayor Eric Adams today announced an agreement that will transform the city-owned South Brooklyn Marine Terminal (SBMT) into one of the largest offshore wind port facilities in the nation. The agreement will help establish New York as a leader in offshore wind and help the New York City meet its nation-leading climate goals of 100 percent clean electricity by 2040.

As part of the deal finalized by the New York City Economic Development Corporation (NYCEDC), Equinor, its partner — bp — and Sustainable South Brooklyn Marine Terminal, L.P. (SSBMT) will upgrade and build out the terminal as an operations and maintenance base. The terminal will become a power interconnection site for the Empire Wind 1 project , and heavy lift platforms will be built on the 39th Street Pier for wind turbine staging and installation for Equinor and other developers. The port will serve as a hub to support the Empire Wind and Beacon Wind offshore wind farms.

NYCEDC also partnered with Equinor and the community to support workforce training for a diverse pool of local residents to bolster opportunities for New Yorkers created by investments in offshore wind infrastructure. The agreement expands the target of minority- and women-owned business enterprise (M/WBE) contractors based in and registered with New York City or New York State, with a 30 percent M/WBE participation goal; and will support technical assistance for M/WBE and Disadvantaged Business Enterprises to create more opportunities for participation in this sustainable growth industry. Additionally, the agreement ensures the development will be a low-emissions facility.

“With this investment, the South Brooklyn Marine Terminal will soon be transformed into one of the largest offshore wind port facilities in the nation,” said Mayor Eric Adams. “This site will be the launch of a whole new industry for New York City that will support 13,000 local jobs over time, generate $1.3 billion in average annual investment citywide, and significantly reduce our carbon footprint so that we can meet our climate goals of 100 percent clean electricity by 2040. This is a transformative moment for New York City and our clean energy future — a future of sustainable power, good-paying jobs, and climate justice.”

“This first major milestone in New York City’s Offshore Wind Vision Plan is a perfect example of how our economic and workforce development objectives must go hand in hand with our clean energy goals. By building this new industry in the right way, we will continue to advance an equitable recovery and make our environment healthier as well,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. “We thank NYCEDC and our partners at Equinor, bp, and SSBMT for coming together to transform the South Brooklyn Marine Terminal into a major offshore wind hub and make New York City a leading destination for this important and growing industry.” 

“Economic, racial, and gender equity is what informs and drives our work every day,” said Magalie Desroches Austin, senior advisor to the mayor; and director, Mayor’s Office of Minority and Women-Owned Business Enterprises. “We’re excited to support and collaborate with our partners at the NYCEDC and at the South Brooklyn Marine Terminal on this highly important initiative. Not only is this a capital investment in New York City’s offshore wind energy, its accompanying infrastructure, and the emerging work force critical to the long-term sustainability of the greatest city on earth, but it also helps to meaningfully and positively move the needle on the mayor’s commitment to Minority- and Women-Owned Business Enterprises and the diverse workforce they employ. We look forward to the many long-term benefits this investment will have on New York City’s environmental footprint, its labor force, and the myriad of M/WBEs that make New York City unique.”

Equinor also committed to establishing a $5 million ecosystem fund to bring more New York City residents into offshore wind careers, propel offshore wind innovation, and support a just transition. Finally, Equinor is working to establish an offshore wind learning center —  accessible to the community — within its Brooklyn office. 

Today’s announcement is critical to the offshore wind priorities and investments of both New York City and New York State. The city has committed $191 million to offshore wind projects — including $57 million in support of SBMT and $134 million in new investments. The city expects these initiatives to remove more than 34 million tons of CO2 from the environment — the equivalent of removing nearly 500,000 cars from roadways for 15 years — while creating 13,000 jobs related to offshore wind infrastructure across the five boroughs. SBMT will be essential to the state’s offshore wind supply chain. Currently, five offshore wind projects are in active development, which will power more than 2.4 million New York’s homes and bring a combined economic impact of $12.1 billion to the state. 

In 2018, NYCEDC selected SSBMT — in a partnership between Industry City and Red Hook Terminals — as the leaseholder to reactivate the South Brooklyn Marine Terminal so that it can create a 21st-century maritime shipping hub with an on-site facility to train local talent. Under this agreement, SSBMT is entering into a sublease with Equinor and bp until 2054 for its operations and maintenance base, and its onshore substation. Under the same agreement, Equinor and bp will have a 10-year term for turbine staging and installation activities with an option to extend the 10-year term for up to six additional years. 
 
“We are enormously proud to lay the groundwork today for our vision of making New York City a nation-leading hub for the offshore wind industry. This agreement builds on the city’s $57 million commitment to reactivate SBMT as a key manufacturing and operations base and will help make New York a leader in climate resiliency, as well as air quality, through clean energy investments,” said Lindsay Greene, officer and executive vice president, NYCEDC. “Working together with our partners at Equinor, bp, and SSBMT, we are also advancing economic recovery and increasing diversity in waterfront construction by helping local minority- and women-owned business enterprises benefit from the growing offshore wind industry and allowing them to take advantage of the green jobs of the future.”  

“This agreement marks a major step forward in our commitment to New York State to both provide renewable power and to spark fresh economic activity, while creating enduring jobs,” said Siri Espedal Kindem, president, Equinor Wind U.S. “With the support of NYCEDC, SSBMT, and our partners in the community, Equinor and bp are ready and eager to invest in the revitalization of SBMT — an historic port that will soon become a major part of New York’s energy future. New York has shown unflagging determination to become a focal point of the region’s offshore wind industry, and this agreement offers tangible evidence that this vision is quickly coming to life.”

“Today marks the first of many positive ripple effects from this project and we want them to reverberate far and wide,” said Felipe Arbelaez, senior vice president for Zero Carbon Energy, bp. “As we reinvent energy, we also want to help reinvent the communities that help deliver it by investing in the skills and capabilities needed. By creating this regional hub, we are able to do just that, and it brings us all one step closer to delivering this incredible offshore wind development.” 

“After decades of advocating to bring offshore wind to South Brooklyn, UPROSE is happy to see this climate justice victory progress in a community with a legacy of fossil fuel pollution and health disparities,” said Elizabeth Yeampierre, executive director, UPROSE; and co-chair, New York City Offshore Wind Advisory Council. “UPROSE and the Sunset Park community have long fought to preserve the industrial character of New York City’s largest industrial waterfront. Offshore wind is an opportunity to center racial justice and operationalize a true just transition by supporting the community-led vision for a green re-industrialization and creating thousands of well-paying local green jobs.”

“I worked closely with Secretary Buttigieg to secure a critical $25 million federal grant to facilitate the transformation of South Brooklyn Marine Terminal into one of the largest offshore wind power projects in the nation, and today I am proud to see it moving forward at full speed,” said U.S. Senator Chuck Schumer. “The federal investment will support good paying, green jobs for a community that has borne the burden of pollution, while helping New York State reach its emissions goals. I will continue to fight hard for a bold buildout of offshore wind and its supply chain in New York, in close coordination with all stakeholders, and for deeper investments in disadvantaged communities.”

“I have been a passionate advocate and a supporter of the Port of New York and New Jersey for more than 30 years, and the announcement today is an important step in the redevelopment of the Brooklyn waterfront,” said U.S. Representative Jerrold Nadler. “A reactivated South Brooklyn Marine Terminal brings good manufacturing jobs to Brooklyn, while supporting green energy. I am so proud that New York City is leading the way to a brighter and greener future by building America's first offshore wind production hub right here at SBMT.”

“Today's agreement sets the stage for us to deliver on our shared clean energy goals right here on the industrial waterfront,” said U.S. Representative Nydia M. Velázquez. “Years of advocacy has brought us here. I am pleased a grant from the U.S. Department of Transportation Maritime Administration will help with much needed infrastructure improvements to create a regional hub of offshore wind production and logistics right here at South Brooklyn Marine Terminal. This significant investment from federal to local partners is a win for environmental justice as we retool our economy for green energy, while adding real manufacturing jobs right here in Brooklyn. With all levels of government, industry and the community working together, the future can be bright.”

“As we move towards a green economy, we must ensure a just transition, where the communities most impacted by fossil fuel pollution and climate change have priority access to new green jobs and education,” said New York City Public Advocate Jumaane D. Williams. “Transforming the South Brooklyn Marine Terminal into one of the largest offshore wind facilities is an incredible opportunity not only for New York City, but to ensure historically marginalized communities are involved at the decision-making level. South Brooklyn’s industrial waterfront will be the next headquarters for green energy in New York State, and this is only the beginning.” 

“The transformation of the South Brooklyn Marine Terminal becoming one of the country’s largest offshore wind port facilities is an exciting milestone for Brooklyn because of all it’ll accomplish — from keeping industrial opportunities in the borough to creating more green jobs,” said Brooklyn Borough President Antonio Reynoso. “This is the forward, innovative thinking we should be seeing more of in the largest borough in New York City. Our gratitude goes to everyone who made this possible, including the local community, NYCEDC, and the companies that will be investing here.” 

“District 38 has long advocated for deep investments into our working waterfront to address critical issues around climate justice and a just transition. Today’s agreement between NYCEDC, SSBMT, and Equinor moves us toward our collective goal of producing 100 percent clean electricity by 2040,” said New York City Councilmember Alexa Avilés. “We are ready to work with Equinor and community partners to ensure we are leveraging this partnership and truly connecting New Yorkers and my constituents to the resources they need to successfully enter offshore wind careers.”

“I am excited to see NYCEDC’s agreement with SSBMT and Equinor, which marks an important moment for the city,” said New York City Councilmember Amanda Farías, chair, Committee on Economic Development. “Reactivating SBMT as an offshore wind industry hub allows the city to continue the work on its commitment to a green just transition. New York City reaffirming itself as a leader in the fight for climate justice, resiliency, and clean energy is critical in moving our state closer to its climate goals. The SBMT agreement is a critical step forward on new economic opportunities in an area where we need major investments to help advance economic recovery and increase diversity in waterfront construction through M/WBE contractor expansion. Sustainable development, clean energy sources, and diversity in job creation are ways to lead in jobs of the future. As the chair of the Committee on Economic Development, I am in full support of transforming SBMT into one of the largest offshore wind port facilities and look forward to seeing the benefits both locally in Brooklyn and throughout our city.”

“This agreement significantly advances New York City’s vision for an equitable clean energy future,” said KC Sahl, VHB national director, Offshore Wind; and co-chair, New York City Offshore Wind Industry Advisory Council. “NYCEDC, Equinor, and SSBMT’s investments in the South Brooklyn Marine Terminal not only position the city as a hub for the emerging domestic offshore wind industry, but also increase economic opportunities for the historically disenfranchised residents of Sunset Park. New York City is modeling how climate and economic goals can be achieved through inclusive partnerships with public, private, and community-based stakeholders.”

“Governor Hochul has made clear port investments are pivotal in unlocking the economic development potential of the offshore wind industry and establishing New York State as the nation’s hub for this essential resource and its supply chain,” said Doreen M. Harris, president and CEO, New York State Energy Research and Development Authority (NYSERDA). “We congratulate Mayor Adams, New York City Economic Development Corporation, SSBMT, Equinor, and bp for this milestone commitment to transform the South Brooklyn Marine Terminal — another critical step forward as New York develops its green economy and provides clean, renewable energy and new economic opportunities to the areas that need it most.” 
  
 “Today’s announcement is the culmination of almost seven years of work by SSBMT to reactivate the South Brooklyn Marine Terminal, a former container and breakbulk cargo port, dormant since the 1980s,” said Michael Stamatis, president and CEO, Red Hook Terminals. “Having identified the offshore wind industry as a potential use for the site in 2015 — well before the offshore wind industry had started to formally take shape in the U.S. — SSBMT could not be prouder of this amazing outcome. We would like to congratulate and thank Governor Hochul, Mayor Adams, NYSERDA, NYCEDC, and the entire team at Equinor and bp for making such a tremendous commitment to the revitalization of the South Brooklyn Marine Terminal, but more importantly for leading the way towards a clean energy transition. We are excited to be a part of this transformative, once in a lifetime opportunity for the Sunset Park community, city, state, and region.” 

“Today's announcement signals the arrival of a new industry in the heart of our region, supporting the development of offshore wind,” said Rob Freudenberg, vice president, Energy & Environment, Regional Plan Association. “With offshore wind projects now underway in New York, New Jersey, and Connecticut, our region is leading the fight to limit the impacts of climate change through the production of renewable energy and to create new opportunities for jobs and community development. This partnership of NYCEDC, SSBMT, and Equinor does just that and sets the stage for additional community economic development throughout the region.”

“We commend the City of New York, SSBMT, and Equinor on the extraordinary partnership to commit capital investments, local workforce programs, and revitalize maritime ports to ensure that offshore wind will be an important component to the region’s renewable strategy. This will be a key driver to reach New York State’s net-zero targets by 2050,” said Cortney Worrall, president and CEO, Waterfront Alliance. “Today’s announcement also sets a bold course towards reimagining the 21st-century working waterfront. Design considerations that promote climate adaptation and resiliency of offshore wind ports in responding to such threats as sea level rise and dynamic flooding events will be critical.”

New York City’s Offshore Wind Vision Plan

In the fall 2021, NYCEDC announced a 15-year Offshore Wind Vision Plan to make New York City a leading destination for the industry by developing best-in-class infrastructure to support the construction and operation of offshore wind farms in the New York Bight, including infrastructure to support manufacturing, staging and installation, operations and maintenance, and transmission. The $191 million investment puts New York City on a path to reduce 34.5 million tons of CO2, as well as meet its goals of 100 percent clean electricity by 2040 and carbon neutrality by 2050. The Offshore Wind Vision Plan is aimed at creating more than 13,000 jobs and generate $1.3 billion in average annual investment, with 40 percent of job and investment benefits directed toward women- and minority-owned businesses and environmental justice communities. The New York Bight is the coastal area between Long Island and the New Jersey coast.  

Regional Offshore Wind Future 

New York City’s goal is to have 70 percent of its energy consumption come from renewable sources by 2030. Under the nation-leading Climate Leadership and Community Protection Act, New York State has set goals of securing 70 percent of the state's electricity from renewable energy by 2030 and the installation of nine gigawatts of offshore wind by 2035. Equinor and bp have contracts for three offshore wind projects in New York — totaling more than 3,000 megawatts of clean, renewable energy. 

In January, New York Governor Kathy Hochul announced the state finalized contracts for Equinor and bp’s Empire Wind 2 and Beacon Wind projects off Long Island, which unlocked an unprecedented public and private funding commitment of $644 million in port infrastructure, including more than $287 million for SBMT. As part of an award from NYSERDA, the developers will convert SBMT and the Port of Albany into large-scale offshore wind industry facilities. 

Further, in December 2021, the U.S. Department of Transportation awarded the full $25 million that the city requested from the federal Maritime Administration (MARAD) through the 2021 Port Infrastructure Development Grants (PIDP). The grant for the “SBMT 35th Street Pier Expansion Project” at Sunset Park is intended to add a barge berth and a heavy-lift crane pad on the western end of the 35th Street Pier. The PIDP grant provides additional funds to expand on city, state, and Equinor funding for 39th Street Pier improvements, as well as Equinor’s operations and maintenance facility and Equinor’s interconnection substation. The addition of 35th Street Pier improvements increases SBMT’s cargo throughput capacity and operational efficiencies, allowing SBMT to further serve the growth of the offshore wind industry in New York City.