Trump Policies Create Jitters for U.S. Offshore Wind

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--As the United States struggles to keep pace with its peer economies in terms of offshore wind, many companies are second-guessing their assets as pro-oil Donald Trump prepares for his second term in the White House.

Trump scored a victory against rival U.S. Vice President Kamala Harris in November. Since then, he's pledged to impose stiff tariffs on key trading partners such as Canada and Mexico, and vowed to do more to support the domestic oil and gas sector.

The United States is already the world leader in crude oil and natural gas production, as well as exports of liquified natural gas (LNG). Trump has vowed to do even more to capitalize on U.S. energy dominance when he enters office in January.

Citing sources familiar with his plans, the Reuters news service reported in November that Trump's transition team was preparing to approve more export permits for LNG and increase oil and gas drilling offshore and on U.S. federal lands.

Meanwhile, last week Patrick Pouyanne, the head of French energy major TotalEnergies SE (NYSE:TTE) (Courbevoie, France), said during a London energy conference that his company was rethinking plans for a windfarm off the coast of New York.

"Offshore wind, I have decided to put the project on pause," he was quoted by Bloomberg as saying.

Attentive Energy, a subsidiary of TotalEnergies, planned for a 3-gigawatt (GW) facility off the coast of New Jersey and New York after securing development rights in a 2022 auction. It was expected to start commercial operations in the early 2030s. TotalEnergies maintains the right to revitalize the project.

Elsewhere, multinational energy company RWE AG (Essen, Germany) during the summer started site surveys of its proposed Canopy windfarm off the coast of California, but recently acknowledged the election of Donald Trump could present a challenge to offshore wind projects going forward. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more by viewing the project report.

Outgoing U.S. President Joe Biden had opened territorial waters up to bidders for offshore wind, setting a goal of establishing 30 GW of power by 2030. The industry, however, has been slow to develop, with the National Renewable Energy Laboratory finding 174 megawatts (MW) of offshore wind in operation and another 4 GW under construction.

The Department of Energy under Biden had steered millions of dollars to offshore wind energy, though Trump could unwind that funding when he takes office. More than a dozen Republican lawmakers, however, had voted in favor of legislation such as the Inflation Reduction Act, which put forward funding to support the so-called energy transition.

With only a few turbines spinning offshore, however, most of the renewable energy on the U.S. grid comes from solar power. Most, around 40%, of the power on the grid comes from natural gas.

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).