Apollo to Invest in New York Offshore Wind Port Project
Apollo Global Management has recently informed that certain funds managed by its affiliates have signed an exclusive agreement to invest in the Arthur Kill Terminal project, dubbed a major offshore wind energy staging and assembly port under development in Staten Island, New York.
New York-based Atlantic Offshore Terminals will lead the development of Arthur Kill Terminal. Arthur Kill Terminal is anticipated to begin operating in late 2025 and, if successful, will catalyze investment across the offshore wind supply chain in the region and greater US.
Boone Davis, President of AOT said: "We’re thrilled to have the support of Apollo on a project poised to create significant value for New York and the US offshore wind supply chain. Successful development of Arthur Kill Terminal would ensure there is sufficient staging port capacity to build New York’s target of at least 9,000 megawatts of offshore wind by 2035 as well as support the use of jackup vessels, floating foundations, and other emerging offshore wind technologies on the East Coast.”
“Apollo has significant experience investing in wind and other renewable energy infrastructure, and we believe our combined expertise will enable us to successfully and responsibly build and operate this critical clean energy infrastructure project.”
“Arthur Kill Terminal is positioned to be a foundation of the core infrastructure supporting the offshore wind industry in New York and the surrounding region,” said Brad Fierstein, Principal at Apollo. “We are excited by the opportunity to support the substantial industrial development and job creation the Arthur Kill Terminal project can bring to the city and region through an investment that leverages our track record in renewable energy infrastructure investments and demonstrates our commitment to sustainability.”
No details were shared on the expected level of investment by the Apollo Funds.
The U.S. government has recently announced plans to promote offshore wind, with a goal to have 30 gigawatts (GW) of offshore wind capacity installed by 2030, and a whopping 110GW of offshore wind by 2050.
It has also committed to supporting the development of a sustainable local offshore wind supply chain, which is set to benefit from $136 billion expected to be spent on U.S. offshore wind development in the U.S. within this decade, as estimated by World Energy Reports. Still, it will take some time to build the local supply capacity, meaning foreign firms will benefit from the U.S. offshore wind drive, and for the foreseeable future, too.
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