In need of jobs, northeastern North Carolina sees promise in offshore wind – Energy News Network

Posted: November 19, 2021 at 5:18 pm

Elizabeth City, North Carolina, once sought to lure boaters up the Pasquotank River with free docking at its marina and welcome baskets of wine, cheese and roses.

Today, the harbor of hospitality is preparing a new pitch, trying to attract offshore wind manufacturers with the regions workforce and manufacturing capacity.

Northeastern North Carolina is a special place, commerce secretary Machelle Sanders said at a recent summit hosted by the historically Black Elizabeth City State University. Just as North Carolina has provided a runway for the Wright Brothers to take flight, the region is helping to develop clean energy.

With two offshore wind farms underway off the Outer Banks and a major turbine blade facility announced just across the state border, the potential in this largely impoverished region is vast. But experts and advocates stress that extreme poverty and economic disparity wont be erased without effort.

We have to be strategic about it, to make sure that the communities that really, really need this are benefiting from it, said Montravias King, an Elizabeth City State graduate and former city councilor. And if we dont, its not going to happen.

Regional pride ran high at the conference, with Sanders, a native of tiny Belhaven on the Pungo River, delivering the keynote address. Citing the areas ties to the Coast Guard and its tourism industry, she declared, we do have assets in this great part of the state.

But in many ways, northeastern North Carolina is a tale of two banks. On the Atlantic Ocean, theres the overwhelmingly White Outer Banks, once a string of modest fishing villages that today is a multibillion-dollar tourist attraction. Dare and Currituck, the two counties that encompass most of these barrier islands, are some of the states wealthiest by income and property value. In the last decade, Curritucks population grew by 19%, not far behind the Triangle and Charlotte.

Then there are the roughly 20 counties of the mainland, sometimes dubbed the Inner Banks by tourism promoters. With few exceptions, these communities have a higher portion of Black people than the state overall. In Bertie County, where the Chowan River empties into the Albemarle Sound, nearly two-thirds of the population is Black, the highest fraction in the state.

People of color were systematically shut out of the regions economic opportunities for centuries, and in recent decades, textile manufacturing jobs were lost to the North American Free Trade Agreement. Today, populations here are shrinking at the fastest rates in the state, and the economic indicators rank these counties among the poorest. Property values in Dare are four and a half times that of Pasquotank County, home to Elizabeth City.

Many feel little connection to the Outer Banks, said King, who now directs clean energy campaigns for the North Carolina League of Conservation Voters in Raleigh. Its a different world out there.

In her address, Sanders acknowledged these inland counties and other rural areas of the state had often been left behind economically, a dynamic she knows well. I know very well what its like to be excluded, she said, because Im Black. Im a woman, and because Im from Belhaven.

But she and others at the conference said the entire region could benefit from offshore wind. In March, a report commissioned by her department found the industry was poised to invest $140 billion up and down the East Coast manufacturing specialized wind turbine components, shipping and assembling them at sea. We do deserve our fair share of that, she said. We are looking forward to that blossoming economy.

Already, theres economic activity underway in northeastern North Carolina because of two major offshore wind projects. Twenty-seven miles east of Virginia Beach, a Dominion Energy project is scheduled to begin delivering power in 2026. With a capacity of 2.6 gigawatts, the wind farm could create enough power for nearly 700,000 homes.

Avangrid Renewables plans a similarly sized project off the North Carolina coast, Kitty Hawk Offshore, slated for completion in 2030. (Larry Lombardi, the economic development director for Currituck County, says the wind farm is actually closer to his town, despite the name. I have to clarify so people understand, he told the Energy News Network, its 27 miles off the coast of Corolla.)

Power from both projects will come onshore to Virginia, and theyll be built and staged in that states Tidewater region. Together, theyre expected to create upwards of 1,700 construction-related jobs annually. Once the wind farms are up and running, theyll spur another 2,000 jobs for technicians, vessel managers, and other operations and maintenance workers.

Most of these jobs will be in Virginia, but within reach of Tar Heels across the border, many of whom already commute north for work. In Gates County, more than half of the employed work out of state, according to commerce officials.

Situated carefully beyond the coastal horizon, the Kitty Hawk wind turbines arent expected to be visible to beachgoers. But even if they were, Lombardi and others believe they could be a boost, not a bane to tourism.

We know from the offshore wind in Europe, he said, they have tourism boats going out there. They have fishing boats going out there. Its just going to add to what were already doing.

These two wind farms could be just the tip of the iceberg. According to the March report, 41 gigawatts of offshore wind could be installed up and down the Eastern seaboard by 2035. Gov. Roy Cooper, a Democrat in his second term, wants a fifth of that to be off North Carolinas coast.

With todays technology in which one turbine has about 6 megawatts of power capacity those figures translate to more than 1,000 turbines off the states coast alone, with another 5,500 or so off the rest of the East Coast.

The structures require specialized parts, like towers 30 stories high, blades the length of football fields, and nacelles that would dwarf most office buildings. Today, all these components are made in Europe creating an unprecedented opening for suppliers in North Carolina.

Theres nothing else like this where you have a multibillion-dollar global industry that has zero footprint in the United States, said Steve Kalland, the director of the North Carolina Clean Energy Technology Center and contributor to the March study. Its wild.

Even when the ocean-based turbines reach the end of their useful lives, theyre likely to be refitted with the latest technology and reused. Manufacturers will need a steady workforce for decades to come. Its a multigenerational opportunity, said Kalland. Were not just going to build wind turbines for five years and then everybodys unemployed.

Though the Northeast states are ahead of the Southeast ones when it comes to establishing a market for offshore wind requiring some 20 gigawatts of the resource by 2035 theres still ample chance for North Carolina and its neighbors to play a leading role in the supply chain.

Thats part of why Cooper joined the governors of Maryland and Virginia last year in an agreement to work cooperatively to boost the regions participation in the offshore wind supply chain including through workforce training, enhancing deepwater ports, and upfitting and expanding factories.

Its already paying off. Last month, Siemens Gamesa announced it would build the countrys first offshore wind turbine blade facility in Portsmouth, Virginia, creating an estimated 300 direct jobs.

The factory is expected to supply the entire East Coast, but another major blade maker in North Carolina is not out of the question, Kalland said. And theres still potential for other major factories to produce towers, foundations, undersea cables, nacelles and more.

All of these things are going to have to get sourced out here in some way, shape or form, he said. We really think that the opportunity for job creation as you work your way through the parts and pieces is huge.

Thats especially true because North Carolinas manufacturing sector is already the largest of the East Coast states, and many companies here already produce onshore wind turbine components. More than 40 have already expressed interest in participating in the offshore wind supply chain.

At Wilmington, Morehead City, and Southport, the state also has opportunities to enhance its ports to assemble and ship large offshore wind components. Radio Island, between Morehead City and Beaufort, is considered the best near-term option.

Jeff Andreini, the vice president of new energy for Crowley Marine Services, glowed about the site at the Elizabeth City State conference. Radio Island is a tremendous opportunity, he said. Its a direct shot out to the Atlantic Ocean.

Andreini, whose company has a network of barges that can deliver offshore wind components to the point of construction, isnt the only one excited about the spot, said Jaime Simmons, program manager for the Southeastern Wind Coalition. The county commission and the economic development office are thrilled about it, she told the Energy News Network.

And though North Carolina is a so-called right-to-work state, which allows workers to be represented by unions without having to pay dues, the state AFL-CIO is still hopeful that offshore wind could help inject more union jobs into the states economy. Its so early and its so new, said Aiden Graham, campaign manager for the group, that nothing is set in stone.

To be sure, not all of these supply chain opportunities are in the states northeast corner, and its not the only area struggling economically. But experts and locals point to evidence that the region could get a significant boost from the industry.

First, theres the spillover effect from Virginia. There is a significant workforce opportunity, even if a lot of this manufacturing and construction work happens in the Hampton Roads area, Kalland said. Theres not enough specialized people in Hampton Roads theyre going to be drawing people from all over the place, and northeastern North Carolina is clearly one of those places.

Second, theres the presence of anchor companies, which provide direct jobs in manufacturing major components and open the door to industries further down the supply chain. Of the five existing potential anchor companies listed in the March report, three have a major presence in northeastern North Carolina.

One is Avangrid, which also operates the states only land-based wind farm, just outside of Elizabeth City. Based in Virginia Beach, Ashley McLeod directs stakeholder engagement for the companys Kitty Hawk project. At the conference, she stressed its expected boon: a $2 billion economic impact.

At the same time, the former school board member sought to assure the audience her company would protect the natural environment during siting and construction. Were making sure were doing it in the most responsible way, she said.

Another potential anchor in the area is L.S. Cables, a New Jersey company with a facility in Tarboro, just east of Rocky Mount in Edgecombe County, the most economically distressed in the state.

The company already supplies onshore wind and solar projects in the United States, according to the March report, and the Tarboro factory could, possibly with some modifications, play a key role to support the ocean cable needs of offshore wind.

Perhaps most promising is Nucor Steel, the largest U.S. steel producer in the country, with headquarters in Charlotte and a sizable facility in Hertford County.

They very much want to be part of constructing the towers, said Amy Braswell, the economic development director of Ahoskie, the countys largest town, population 4,659. The interest is already having a ripple effect. Were contacted by people who want to be in proximity to Nucor, she said, to work with them.

The countys economy could undoubtedly use more than a ripple. The 10th most economically distressed in the state, it has a median household income of $38,000 and an unemployment rate of over 6%.

I think its going to be a boon for eastern North Carolina and eastern Virginia, said Braswell of the offshore wind industry. Its going to be a boon for the citizens who are going to get really good jobs.

The areas numerous rivers and sounds could serve to transport large components by barge up to Virginia ports and down to North Carolina ones. The area also has a network of railroads and highways that ease transport.

We are not as susceptible to storm damages and things that you have to worry about closer to the coast yet we are an hour from anything, Braswell said. We think were ideally situated for it.

Still, these economic opportunities could be limited if North Carolina misses its offshore wind targets set by Cooper not an impossibility.

While the federal government is moving forward on a lease area 17 miles off the states southernmost shores, it will have to overcome opposition from over half a dozen local governments who oppose any turbines beachgoers might glimpse from the sand.

At the same time, a Trump-era ban on offshore wind, set to take effect next July, must be lifted by Congress for any other wind energy areas off North Carolinas coast to come to fruition. The Build Back Better bill contains language that would do just that, but its fate is still uncertain.

Fulfilling Coopers targets will almost certainly require additional state-level legislation, said Simmons. Even with a new law requiring a 70% reduction in Duke Energy power plant pollution by 2030, the state probably needs specific mandates for offshore wind to draw development off its coast and supply chain jobs with it.

This is such a new industry that were bound to get part of it, she said, but it will require a designated effort for North Carolina to capture what we know is economically possible.

While the AFL-CIO is optimistic about the possibilities for union jobs, those odds increase if federal or state policymakers tie green energy incentives to the opportunity to be in a union.

We can remake the economy to benefit working people and the planet and to grow the labor movement, Graham said, but its not a foregone conclusion.

The degree to which northeastern North Carolina benefits economically from offshore wind will also depend on how well prepared residents are to work in the industry. Thats why boosters say training programs at community colleges and at historically Black universities such as Elizabeth City State are critical.

Education is important, King said. Dont bring in people from outside we want to see those dollars flow in our communities.

The Cooper administration has already dipped its toes into these waters, working with Halifax County schools to create a pilot program for 20 high school students to work in solar and wind energy and earn course credit toward a bachelors degree.

The Governors Office and other partners are working to expand this program to include additional school systems, companies and industries including offshore wind, spokesperson Jordan Monaghan told the Energy News Network in an email.

King, who with Simmons and other clean energy groups is part of a new coalition to promote offshore wind, remains cautiously optimistic.

Were on the cusp of a clean energy revolution, he said. We have the opportunity to produce some real, high-earning jobs for people, that can change peoples lives. But it doesnt happen overnight you have to prepare people for it.

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In need of jobs, northeastern North Carolina sees promise in offshore wind - Energy News Network

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