Virginia Gov. Glenn Youngkin (R) on Tuesday announced the launch of the Virginia Offshore Wind Supplier Development Grant, which is designed to give incentives to existing manufacturers in the commonwealth to enter into production that supports offshore wind.
The program was approved in legislation adopted last year and is administered by the Virginia Economic Development Partnership (VEDP). It offers competitive grants to assist manufacturers that want to enter the field by offsetting capital expenditures in equipment used for offshore wind.
“With a central East Coast location, one of the highest concentrations of skilled maritime talent, world-class port infrastructure and a competitive cost of doing business, Virginia has emerged as a leader in the U.S. offshore wind supply chain,” Youngkin said. “This new grant will strengthen the industry ecosystem in the commonwealth while driving economic development and job growth and is a strategic investment that supports our plan to guarantee abundant, clean energy for Virginia’s future.”
Legislators approved $2.5 million from the general fund for the grant program, which runs for three years starting this month. Funds will be disbursed as reimbursements for purchased equipment and grant awards will range from $20,000 to $250,000. Purchases made before July 1, 2023, are not eligible.
The grants can defray the cost of investments in real property and/or tangible personal property but cannot be used for maintenance or repair of existing equipment. The grants can be applied to replace old equipment if that leads to an increase in production.
The grants are limited to companies that make investments of at least $40,000 in the next 36 months. Applicants must have fewer than 250 full-time employees and be registered as a vendor in the Virginia Offshore Wind Supply Chain Partnership Directory at the time of application.
Applicants will have to maintain their local employment levels, as verified by the commonwealth, at the awarded location through the life of the grant. They must have a legal presence within Virginia for at least a year and be in good standing with the State Corporation Commission before applying.
VEDP will review the applications and conduct due diligence, while the Virginia Offshore Wind Supplier Development Grant Review Committee will meet every three months to review those applications and authorize grants.
“The Virginia Offshore Wind Supplier Development Grant will leverage the commonwealth’s existing offshore wind leadership position and advance our competitive advantage in emerging supply chains and technologies,” said Secretary of Commerce and Trade Caren Merrick. “This program invites Virginia manufacturers to diversify their portfolio to supply the industry, ultimately advancing our goal for the commonwealth to become the market leader in offshore wind technology, development and deployment.”
