With Cape Wind Faltering, New Bedford’s Future As Offshore Wind Hub Uncertain

NEW BEDFORD, MASS. -- In the opening chapters of “Moby Dick,” Herman Melville illustrates what was once the wealthiest city on earth. But the end of the whaling age, and later the city’s massive textile industry, brought depression to New Bedford. The city that lit the world now has one of the highest unemployment rates in the state.

Enter offshore wind: the prospective industry that’s been a cornerstone for New Bedford Mayor Jon Mitchell.

“Offshore wind is important to New Bedford because it holds the potential to rebuild our economic base and grow jobs that can support families and make the community stronger,” Mitchell said.

New Bedford was supposed to stage the assembly of Cape Wind turbines, the country’s first large-scale offshore wind farm. To make it happen, the state built a marine commercial terminal in the city. But Cape Wind recently ended its lease contract with New Bedford, leaving the terminal without a tenant.

Making The Most Of The Investment

So far the New Bedford Marine Commerce Terminal has cost taxpayers $113 million. It doesn’t look like much yet, but the ground is fortified to support the heaviest components of a wind turbine.

The city was prepared for the onshore demands of offshore wind, and former Gov. Deval Patrick announced last fall that Cape Wind would be first to use the terminal.

But the project needed so-called power purchase agreements to work. In exchange for a green light from Patrick on a pending merger, Eversource Energy, formerly NStar, had agreed to buy a quarter of Cape Wind’s power. National Grid was in for another 50 percent.

But in January both companies ended their purchase agreements, effectively sinking the project days before Patrick would leave office. They cited Cape Wind’s failure to meet financing and construction goals. The next blow was to New Bedford, when Cape Wind ended a $4.5 million contract to lease the terminal.

The hundreds of jobs promised were gone before they arrived.

Matthew Beaton, the new state energy secretary, was a state representative when construction started on the terminal in the spring of 2013. Beaton says he wouldn’t make that investment today.

“Probably not, no. I don’t know if, given the uncertainty of Cape Wind at that time, and the overall question marks of offshore wind development, is a $100-plus million investment the appropriate use of those funds? Could we have used those monies in a more well-suited manner?”

Beaton’s comments have extra weight now that he chairs the Massachusetts Clean Energy Center, the quasi-state agency overseeing the terminal project.

“The decision to make that investment was made and now it is up to us to make the most of that investment,” Beaton said.