Windstream has signed a $3 billion contract with an American consortium to build the first wind turbine on the U.S. Atlantic coast, a deal that could help it secure wind energy infrastructure across the country.
Windstream, based in Virginia, is the second wind turbine to be built by the consortium, following one from the Netherlands.
The company says the contract is worth $1.5 billion, with an option to buy additional equipment and equipment to support the project.
The wind turbine will be built in New Jersey and the contract was signed Monday.
Windstorm Group, a Delaware company that specializes in offshore wind, also has a deal to build an offshore wind farm in the Gulf of Mexico.
Wind Storms, a consortium of wind developers, announced the $3.6 billion contract on Thursday.
The deal, which is subject to environmental approvals, was announced just days after President Donald Trump signed an executive order aimed at encouraging offshore wind development in the Atlantic.
The president is expected to sign an executive memorandum to promote offshore wind in the coming weeks.
“We’re excited about this wind project, and this new wind farm that we have,” Windstorm CEO Andrew Stokley told reporters in New York.
“It’s an important milestone in the development of offshore wind.”
Windstorm says it expects the turbine to generate about 200 megawatts of electricity, enough to power about 1 million homes.
The turbine is expected be operational by 2021.
WindStorm also says it plans to buy $1 million worth of offshore equipment from a local manufacturer.
Wind Stream’s wind turbines are not the first of their kind in the U-S.
WindStream’s offshore wind farms are mostly in the Caribbean, including one in the Bahamas that has received $200 million in government incentives.
The Bahamas has also had wind energy projects built in the past.
Wind turbines in other parts of the Caribbean have been built in recent years.
But those projects have been more expensive than in the United States, which requires a certain amount of government subsidy to build a turbine.
The Atlantic Wind Alliance, a group of wind producers, energy producers and energy investors, is looking to help Windstream with the development and expansion of its offshore wind project.
In April, the group announced it had awarded $400 million in incentives to help with the project’s development.
Wind-focused groups like the Alliance and the American Wind Energy Association (AWEA) have also joined the effort to promote and expand offshore wind energy development in recent months.
In March, AWEA president and CEO Michael Brune said he expected a “significant” boost in offshore development by 2020.
AWEB President and CEO Matt Taggart told The Associated Press that he expected the development to take “at least 20 years,” if not longer.
Wind’s surge in popularity has seen it become the fastest-growing sector in the global energy industry.
A total of 438 turbines were built in 2016, up from the previous year, according to the International Wind Technologies Association, which represents the wind industry.
Wind companies have also been able to use the boom in offshore oil and gas development to tap into the energy savings that can be achieved by reducing the number of fuel cells that need to be converted to wind power.
According to the American Energy Alliance, wind energy has a 20% annual growth rate in installed capacity and an average capacity factor of 6.6.