Earlier this month, VEDP Senior Economist Brian Kroll testified before the U.S. House of Representatives’ Subcommittee on Energy and Mineral Resources. The subject of the oversight hearing was “America’s Offshore Energy Resources: Creating Jobs, Securing America, and Lowering Prices.”
The subcommittee, led by Congressman Doug Lamborn, heard testimony from four experts on how offshore energy can be a catalyst for job creation and economic development, particularly in regions off the Outer Continental Shelf.
VEDP Senior Economist Brian Kroll focused on the positive impact of Virginia’s growing offshore wind industry.
Using an economic impact analysis that assumed 2,000 MW of offshore wind capacity were built over a 10-year period and only half of the supply chain located in the Commonwealth, Kroll concluded that 2,125 direct jobs and 2,710 indirect jobs could be created in Virginia over the first five years, and an additional 1,635 direct jobs and 1,960 indirect jobs could be created over the last five years, for a grand total of 8,430 new jobs in Virginia.
These jobs would primarily come from sectors such as operations and maintenance, construction, and the manufacturing of nacelles, turbine blades and generators.
In addition, Kroll concluded these jobs would benefit Virginia through an additional $9 billion in GDP and $119 million in state-level tax revenue over the 10-year period.
With yesterday’s announcement that the Bureau of Ocean Energy Management (BOEM) is on track to issue the Virginia Department of Mines, Minerals and Energy a wind energy research lease on the Outer Continental Shelf, Virginia’s wind industry continues to build momentum.
In December, we blogged about the positive announcements from the BOEM, advertising the first-ever wind energy lease sale on the Outer Continental Shelf, and from the Department of Energy, reporting that a Virginia team was one of seven projects awarded a grant for the engineering, design and installation of an offshore wind turbine demonstration facility.
Virginia is primed to be a leader in the offshore wind industry, providing the ideal combination of strong Class 6 winds, shallow waters off the coast, an experienced maritime workforce, a robust transportation network, and access to a fully operational high voltage transmission grid close to shore.
To watch a webcast of Brian Kroll’s presentation, click here and to learn why more than 380 energy companies call Virginia home, click here.
VEDP Senior Economist Brian Kroll testifies before the U.S. House Subcommittee on Energy and Mineral Resources about the economic benefits of developing Virginia’s offshore wind industry.