The lease term of 10 years is valued at nearly $4.4 million annually, according to the governor's office, and includes an option for two, five-year renewals. Dominion Energy's two-turbine pilot program is currently operating off Virginia Beach.
Last year, Northam signed into law the Virginia Clean Economy Act, which sets a goal of producing at least 5,200 megawatts of offshore wind energy by 2034. The law set a target of 2045 for the commonwealth to achieve 100% carbon-free energy production.
“This announcement is yet another milestone toward making Virginia the national leader in offshore wind power," Northam said. “The Commonwealth and Dominion Energy are standing together to promote clean energy, reduce carbon emissions, create jobs, and build a new American industry on the East Coast of the United States.”
The Biden administration wants to develop 30 gigawatts of offshore wind capacity by 2030, though some analysts have questioned whether the target is attainable.