At the end of April, LS GreenLink USA announced that it had begun building a manufacturing and port facility in Chesapeake, Virginia, following the acquisition of a 98-acre brownfield site last July. Representing a more than $681 million investment, the initial phase will comprise a 750,000-square-foot manufacturing plant, a 660-foot Vertical Continuous Vulcanization (VCV) tower, and a pier. The VCV tower will not only be the tallest structure in Virginia but also the tallest between Philadelphia and Charlotte. The first phase will occupy about half of the acquired land, with the rest reserved for future phases that will continue to expand production capacity and technological innovation.
With the first phase scheduled for completion in late 2027 and full operations expected at the beginning of 2028, the facility will be critical to the manufacturing and shipment of high-voltage direct current (HVDC) submarine cables, an essential component of global energy infrastructure. These cables are crucial to the offshore wind supply chain, helping to transmit generated energy across ultra-long distances to the communities where it is needed. It will be the company’s first U.S. offshore wind cable manufacturing plant, highlighting the increase in foreign clean energy investments in the U.S.
Located within the Hampton Roads Beltway, the facility benefits from being in a traditional maritime and manufacturing hub, with deep channels and an established and skilled workforce. Doug Smith, president and CEO of the Hampton Roads Alliance, a partner on the project, commented, “The Hampton Roads region has long been recognized for its strong maritime and manufacturing capabilities. This significant investment from LS GreenLink in Virginia not only enhances our regional economy but further establishes Hampton Roads as a hub for innovation and advanced manufacturing in the energy sector.”
Stephen A. Edwards, CEO and executive director of the Virginia Port Authority, explained, “This strategic decision demonstrates how competitive Virginia is in attracting world-class industry and how the offshore wind industry in Virginia is gaining momentum. The port is ready to support GreenLink’s nearly $700 million investment in Chesapeake, and we look forward to building a collaborative and productive relationship with the newest member of the offshore wind community.”
David White, Executive Director of the Virginia Maritime Association, elaborated, “The development of this advanced manufacturing facility in Chesapeake aligns with the strategic growth of Virginia’s maritime industry. This project will provide critical infrastructure for the global energy supply chain while creating high-quality jobs in the region. We are proud to be part of this exciting development and look forward to its future success.” The Virginia Maritime Association helped the company select the best site on the East Coast for LS Greenlink’s operations.
Photo Courtesy Hampton Roads Alliance
The facility will also benefit the local job market, creating over 330 local jobs in the first phase. Although it will be located in the state’s third Congressional district, neighboring areas, including the district of U.S. Representative Jen Kiggans (R-VA-02), will also see the hiring benefits. Virginia Governor Glenn Youngkin (R) stated, “LS GreenLink has recognized that Virginia has the skilled talent, world-class logistics location, and business environment that will allow it to serve its growing global customers for submarine power cables.”
The Virginia Economic Development Partnership and the Chesapeake Economic Development Authority supported the project’s development with financial incentives. In particular, Gov. Youngkin approved a $13.2 million grant from the Commonwealth’s Opportunity Fund to help the City of Chesapeake with this project.
Last year, LS Greenlink also announced that the U.S. Department of Energy (DOE) had awarded it over $99 million in Section 48C investment tax credits. Daniel Ko, senior vice president of parent company LS Cable & System, reacted, “The support by the DOE will help LS GreenLink meet the global surge in demand for submarine cables and alleviate the significant supply chain problems in the offshore wind industry in the United States.” Now, with those tax credits at risk in the U.S. House’s version of the budget and tax bill, the fate of projects like this one is in the hands of Senate Republicans.
Photo Courtesy LS GreenLink USA, Inc.
Chesapeake City Mayor Rick West said, “This groundbreaking ceremony represents not just a significant investment in the City of Chesapeake but also for the Hampton Roads community. This investment represents a huge step for the region’s clean energy and offshore wind industries. LS GreenLink’s decision to locate in Chesapeake proves the City’s and region’s commitment to clean, renewable energy.”
