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Economics

How much will the project cost?

Total project costs will be approximately $120 Million.

     

    Is there an opportunity for individuals to make an investment in LEEDCo?

    LEEDCo is a 501(c)(3) non-profit, private corporation. We accept tax-deductible donations.  However, this would be an outright grant, not an investment, as it offers no prospect of return.

    LEEDCo is currently developing financial models for the project and is exploring the potential for individuals to make an investment in the project as it gets closer to completion.

     

    Where is the money coming from?

    Private sector equity and debt, financed by the revenues from electricity sales. Icebreaker's financial model does not currently include any federal or state tax or policy incentives.

       

      Will ratepayers expect an increase on their utility bill?

      LEEDCo is currently pursuing power purchase agreements for the output of the project.  It is premature to speculate how such agreements will affect whose bills by how much.  LEEDCo, however, is committed to purusing innovative technical and construction measures, employing competitive contractual pricing, striving for best possible financing terms and arrangements, engaging world class firms to execute the project, and exercising best practices in project management and construction management to drive down the cost of electricity.

         

        Doesn’t wind energy require government subsidy? Why is it still so expensive?

        All energy sources receive subsidy, though not all subsidies are created equal. For reference, there are two comprehensive reports on the historical disparity of energy subsidies. One report is published by Management Information Services Inc , the other by DBL Investors .

        Admittedly, offshore wind energy is more expensive than other conventional sources of electricity. However, offshore wind is a new industry with a great deal of room for innovative engineering and cost-cutting solutions. Looking at the price trajectory of onshore wind, it is clear time has lent itself toward competiveness. It is reasonable to assume like other technology cost-curves, offshore wind will follow suit.

        LEEDCo and its partners realize that the price of power from this initial project will be above market levels.  LEEDCo and its partners are committed to driving down the cost of offshore wind in Lake Erie towards competitive levels in subsequent projects, with the goal of parity for projects installed in the early half of 2020's.

        It should be noted that so-called “conventional“ energy sources that wind energy must compete against also receive a host of subsidies such as tax deductions, loan guarantees, liability insurance and leasing of public lands at below market prices. Some, like the depletion allowance for oil and gas, are permanently embedded into the tax code. Additional indirect subsidies include federal money for research and development programs and policy provisions in federal legislation. The largest subsidy may be that the environmental impacts from fossil fuel use are not reflected through higher costs of those energy sources.

         

         

        Where will the turbines come from?

        LEEDCo is targeting turbine models that optimize energy output for Lake Erie's IEC Class II wind regime and will likely be in the 3 - 4 MW range. The amount of domestic content in the manufacturing supply chain will be an important consideration in the evaluation.

        Beyond the turbines themselves, most of the jobs and economic development associated with offshore wind will come from activities not associated with turbine manufacturing. This is one of the most misunderstood concepts of offshore wind. To date, Europe has created over 40,000 jobs in the offshore wind industry and most of those are not in manufacturing, but in maritime activities, biology, engineering, logistics, operations, environmental health and safety, tourism, construction, weather forecasting, surveying, finance, maintenance and development.  Most of these jobs by their very nature will be locally-sourced – from the first project onward.

           

          How many jobs will be created from the pilot project alone?

          It is projected that the initial 20.7 MW project will generate about 525 jobs.

             

            Can I buy power from the project if I want to?

            Currently, there is no finance structure in place to offer households the opportunity to opt-in to buy some power from the project.  However, LEEDCo is exploring possibilities on this front, so stay tuned.

               

              Will tourism within proximity to any of the projects be negatively impacted?

              No.  It is unlikely that wind projects will be developed near resort areas, such as the Lake Erie Islands, to avoid potential aesthetic impact and public discern.

              In fact, Ohio’s leading role in developing offshore wind projects could actually become a tourist attraction, as has been the case in Europe, where there are boating tours to enable visitors to get up-close to installed and operating offshore wind projects
               

              Icebreaker Wind Supply Chain Opportunites

               Want to get listed for supply chain opportuntities? Please click here.


               Thank you to all that attended our first Icebreaker Wind Supply Chain Open House.  

              Please click here for the Supply Chain Open House presentation.

              Please click here for Supply Chain Open House posters.

               

               

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