Dominion Energy, Port of Virginia reach lease agreement for 2,640 MW wind project

The Port of Virginia reached an agreement to lease an increased portion of the Portsmouth Marine Terminal to Dominion Energy. The agreement puts to use an idle terminal area converting it into a large pre-assembly and staging area for the planned wind farm off the Virginia coast. Previously, the port had agreed to a lease to create a small staging area.

Under the new 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. Expected to be in service by the mid-decade, the Virginia wind project will produce more than 2,600 megawatts of renewable energy.

The lease term is 10 years—valued at nearly US$4.4 million annually—and includes an option for two five-year renewals. In January 2020, Virginia had agreed to a lease for 1.7 acres at the Portsmouth Marine Terminal through 2026, with options to expand to 40 acres. The original plan called for the terminal to operate solely as a staging area.

The new lease agreement 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. Once the components are loaded onto ships, the vessels will travel to the installation site off Virginia Beach.