Swedish construction and development company Skanska has penned a contract with the Virginia Port Authority for the redevelopment of the Portsmouth marine terminal for use as an offshore wind staging port.

The $223m deal supports the Coastal Virginia Offshore Wind (CVOW) project which is the largest offshore wind project of its kind in the US.

The port project will redevelop approximately 72 acres of the 287-acre terminal which will improve 1,500 feet of an existing 3,540-foot wharf.

Construction commenced last month and completion is scheduled for 2025.

Dominion Energy’s 2.6 GW planned offshore wind project is located approximately 43 km off the coast of Virginia Beach. Once the construction is completed in 2026, it will be capable of supplying clean energy to as many as 660,000 households while reducing carbon emissions by over 2m tonnes per year.