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U.S. power utility Dominion Energy and Spanish turbine maker Siemens Gamesa said on Monday they will build the first U.S. factory to make blades for offshore wind power, part of plans to make a regional supply hub for the industry.

Siemens Gamesa (SGREN.MC) and Dominion (D.N) will invest $200 million to build the blade factory in Portsmouth, Virginia, near a marine cargo space Dominion is leasing to build turbines for its project, the Coastal Virginia Offshore Wind project, or CVOW. The factory is expected to be finished around 2025.

Dominion hopes CVOW will be the largest U.S. offshore wind farm of 180, 800-feet-tall (245 m) turbines to be installed nearly 30 miles (48 km) off the Virginia coast. CVOW, expected to be finished in 2026 depending on permits, would have a capacity of 2.6 gigawatts, enough to power 660,000 homes.

“You’re seeing pieces coming together to not only support our CVOW project but to support the future of offshore wind on the East Coast,” said Mark Mitchell, a Dominion senior vice president for project construction.

[Timothy Gardner]

More: Dominion, Siemens Gamesa plan Virginia offshore wind power hub

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