Portsmouth Naval Shipyard to receive $654 million for infrastructure upgrades
$654 Million Federal Award to Modernize Portsmouth Naval Shipyard’s Power and Water Systems
Portsmouth, Maine — The U.S. Navy will invest more than $654 million in the Portsmouth Naval Shipyard, located just across the Piscataqua River from Boston, to upgrade its power distribution, energy storage and water infrastructure. The award, granted by the Naval Facilities Engineering Systems Command (NAVFAC), is part of the Water & Power Resiliency Project, a key element of the shipyard’s Infrastructure Optimization Program.
The funding will support on‑base construction of new natural‑gas generators, additional water mains, a new water tank on Seavey’s Island and an auxiliary seawater system. It will also help Kittery Water District and Central Maine Power complete off‑base projects that will bring the entire region’s water and power networks up to modern standards.
“This modernized, resilient utility framework will help ensure shipyard operations can meet current demands and future capacity requirements while reducing the risk of utility failure,” said Keith Barbish, director of the Shipyard Infrastructure Optimization Program. “Ultimately, reliable infrastructure helps Portsmouth Naval Shipyard return attack submarines to the fleet on schedule.”
Addressing Recent Water Crises
The upgrade comes amid a series of severe leaks that have disrupted water service to surrounding communities. In April and again in July of this year, water main breaks at the shipyard forced residents to use bottled water for a week or more. The new water tank on Seavey’s Island and the auxiliary seawater system will provide a more robust backup during outages, ensuring a continuous supply for both the shipyard and nearby households.
“Recapitalizing aging infrastructure directly supports America’s undersea warfare capability and long‑term readiness,” Barbish added.
Project Timeline and Scope
Construction is slated to begin shortly after the award announcement and will span six years, with final completion expected in December 2031. The plan will modernize the shipyard’s entire power distribution network, add energy‑storage capacity, and install on‑site generation units to reduce reliance on the local grid during peak demand or emergencies.
The project will also dovetail with efforts by the Kittery Water District and Central Maine Power to upgrade off‑site pipelines and facilities. Together, the federal, local and commercial partners aim to create a seamless, resilient supply chain that supports both military operations and the regional economy.
Implications for the Community
The upgraded infrastructure is expected to mitigate future utility failures that could disrupt both shipyard operations and civilian life. Local residents will benefit from a more reliable water supply, while the Navy will maintain its schedule for building and deploying attack submarines—an essential component of the nation’s undersea warfare capabilities.
The Portsmouth Naval Shipyard, the oldest operating shipyard in the United States, has long been a cornerstone of the Kittery economy. The $654 million investment underscores the federal government’s commitment to sustaining that legacy while ensuring that the shipyard remains ready for the challenges of the 21st century.
