'Ocean City cannot be bought': Mayor firmly rejects offer of financial compensation

Kristian Jaime, Salisbury Daily Times
·4 min read
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The contentious offshore wind development being planned for off Ocean City by US Wind has added another chapter, with Mayor Rick Meehan rejecting a financial incentive offer by the company.

A statement released Wednesday by the longtime detractor of offshore wind development off of Ocean City came on the heels of the company engaging discussions with the neighboring Delaware resort communities offering Community Benefit Packages. The packages, Meehan stipulated, offered payments up to $2 million to be dispersed to these communities over a 20-year period.

According to Meehan, "these Community Benefit Packages are in exchange for the commitment that these local government officials would refrain from making any negative comments or objections to US Wind's proposed project for the term of the agreement," he said in a statement.

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US Wind and Ørsted currently have federal leasing agreements to operate their scores of turbines in the ocean between 15 to 21 miles off the coast of Maryland. The Baltimore-based US Wind is considering properties in Ocean City for the maintenance and operations of the turbines that are scheduled to be operational by 2026.

Mayor Meehan: 'Ocean City cannot be bought'

The Bureau of Ocean Energy Management held a comment session Tuesday, Oct. 24 at Ocean City Elementary School for the proposed offshore wind turbines to be placed off the coast of Ocean City.
The Bureau of Ocean Energy Management held a comment session Tuesday, Oct. 24 at Ocean City Elementary School for the proposed offshore wind turbines to be placed off the coast of Ocean City.

Meehan condemned the move by US Wind as efforts to undermine the public's right oppose the development.

“I find it unconscionable that any local officials would consider payment to silence their voice on any issue that directly effects their constituents or their community,” Meehan said. “In Dec. 2023, I received an email from Jeff Grybowski, chief executive officer for US Wind, offering Ocean City the same opportunity that has been extended to Delaware beach towns. My response was, 'respectfully the future of the Town of Ocean City cannot be bought' and we intend to continue to do what is necessary to protect the interests of our residents, property owners and future generations.”

Meehan doubled down on his opposition to the project, citing the company's plan to build 940-foot-tall wind turbines as close as 10.9 miles off the coast of Ocean City.

Nancy Sopko, US Wind’s senior director of External Affairs, confirmed they had been in contact with local officials for the town of Ocean City, but noted development of offshore wind in the region will continue.

“US Wind reached out to the Mayor of Ocean City in Dec. to initiate conversations about a potential Community Benefits Agreement," Sopko said. "Unfortunately, Ocean City chose to not engage in those discussions. As a member of this community, we believe it’s important to do what we can to help it thrive. We will continue to work with the people of Ocean City, as we’ve done for several years, to ensure that we’re being good neighbors."

She added Ocean City’s position on community benefits has no impact on project plans.

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"As we work towards securing final federal permits later this year, we’re very confident that we will build Maryland’s first offshore wind farm and deliver clean energy to the people of Delmarva for years to come," Sopko said.

Are wind energy projects in peril off coast of Ocean City?

The new lease areas, entitled A-2, B-1, and C-1, are still at the federal level with companies poised to expand their offshore wind energy portfolio in those areas.
The new lease areas, entitled A-2, B-1, and C-1, are still at the federal level with companies poised to expand their offshore wind energy portfolio in those areas.

In January 2024, speculation on the future of offshore wind in Maryland and Delaware reached a fever pitch after Ørsted, another developer, pulled out of a billion-dollar deal to develop a project near New Jersey. Subsequently, they pulled back from the state agreement for a similar development in Maryland.

In a statement by the company, it announced it will reposition Skipjack Wind, a combined 966-megawatt project in development off the coast of the Delmarva peninsula, "for future offtake opportunities." Following consultation with the state of Maryland, Ørsted has withdrawn from the Maryland Public Service Commission Orders approving the Skipjack 1 and 2 projects.

“The announcement affirms our commitment to developing value-creating projects and represents an opportunity to reposition Skipjack Wind, located in a strategically valuable federal lease area and with a state that is highly supportive of offshore wind, for future offtake opportunities,” said David Hardy, Group Executive Vice President and CEO Americas for Ørsted.

This move follows an extensive review of the agreement, with the company citing the payment amounts for the certificate are "no longer commercially viable because of today’s challenging market conditions, including inflation, high interest rates and supply chain constraints."

Ørsted intends to continue advancing development and permitting for the combined project, including submission of its updated Construction and Operations Plan to the federal Bureau of Ocean Energy Management.

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This article originally appeared on Salisbury Daily Times: Mayor rejects financial offer on wind: 'Ocean City cannot be bought'