Dominion Still Committed to Offshore Wind

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--After U.S. President Donald Trump signed an executive order against offshore wind, Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) said its Coastal Virginia Offshore Wind (CVOW) project is still on schedule for completion by the end of next year.

Dominion said the 2.6-gigawatt (GW) project is fully permitted and about 50% complete. Boasting that it created $2 billion in economic activity associated with the project, the company said the CVOW project is on schedule as planned.

"CVOW continues to achieve significant construction milestones including the successful installation of the first 16 transition pieces which serve as the junction between the foundation and tower for each of the 176 wind turbines," Dominion said on Tuesday. "Delivery of the first of three 4,300-ton offshore substations to the Portsmouth Marine Terminal in Virginia Beach occurred at the end of January."

Subscribers to Industrial Info's Global Market Intelligence Power Project Database can click here for a detailed report on CVOW.

The progress report from Dominion follows an executive order from the Trump administration on offshore wind. The order, signed January 20, revoked leases to develop new offshore wind facilities and prohibits the renewal of existing wind energy leases. For existing leases, the order mandates the that Department of the Interior conducts a comprehensive review that would be ultimately submitted to the president.

London-based Shell plc (NYSE:SHEL) pulled out of its Atlantic Shores project off the coast of New Jersey at the end of January, telling The Associated Press that it would write off the cost of the project, pointing to changing market conditions.

"Naturally we also take regulatory context into consideration," spokesperson Natalie Gunnell said.

The federal government, under former President Joe Biden, gave preliminary approval for the project in October, to the praise of New Jersey officials and industry trade groups. A joint venture between Shell and a subsidiary of EDF Renewables North America (San Diego, California), the project was slated for 2.8 GW of energy over two phases, enough to meet the energy demands of about 1 million New Jersey residents. Subscribers can learn more by viewing the project report.

On Tuesday, the state government said it would not move forward with future lease sales due to the uncertain future of the industry.

But Dominion continues unabated. The company said tower and blade manufacturing is underway, with fabrication slated for the first quarter. A newbuild vessel, Charybdis, a U.S.-made ship designed for offshore wind installation, is now conducting sea trials off the coast of Texas.

The cost for the project, however, has increased by 9% since inception, to $10.7 billion, though Dominion noted this is the "first and only" cost increase since the project budget was submitted to authorities in Virginia in November 2021.

Biden during his four-year tenure offered lofty ambitions for offshore wind, though the sector remains largely in the nascent stage relative to U.S. economic peers. Before Trump returned to the White House, the U.S. Energy Department estimated that renewable resources would account for about a quarter of the total electricity generation, though much of that comes from solar power.

Dominion, meanwhile, estimated the average consumer would pay 43 cents per month more for their bills once CVOW is supplying power to the grid.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).