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Released February 08, 2021 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--U.S. offshore wind power development may get a long-needed boost from President Joe Biden's executive order, issued January 28, in which he pledged to "double renewable energy production from offshore wind by 2030."
During his term in office, President Donald Trump did include at least one offshore wind farm in his Executive Order 13927, issued June 4, 2020, instructing the Department of the Interior (DOI) and other agencies to expedite the permitting and construction of energy and infrastructure projects on federal lands and waters. The Vineyard Offshore Windfarm, a two-phase, $1.6 billion, 800-MW offshore windfarm developers want to build off the coast of Massachusetts, was one specific offshore windfarm that DOI was seeking to expedite. For more on that, see September 8, 2020, article - U.S. Interior Department Seeks to Expedite Energy, Mining Projects.
In fact, during the Trump administration, most of the activity on offshore wind-power development came at the state level, with various states -- including New York, New Jersey, Massachusetts and Rhode Island -- adopting aggressive goals and timelines for offshore wind as part of an effort to slow global climate change. For more on that, see June 17, 2019, article - Can U.S. Offshore Wind Find a Way to Realize its Vast Potential?
Right now, doubling offshore wind-power electric generation seems easily achievable, as the U.S. only has one operating offshore windfarm: the 30-MW Block Island project off the coast of Rhode Island. Built by Orsted at a cost of about $290 million, the windfarm began operating in late 2016. A few others are being constructed.
An aggressive expansion of offshore wind power does not lack for opportunities: The Department of Energy found that the U.S. could install 22,000 MW of offshore wind projects by 2030 and 86,000 MW by 2050, creating tens of thousands of jobs in communities along the Atlantic Coast.
In New York Governor Andrew Cuomo's state of the state address on January 13, he touted his state's commitment to building renewable energy generation onshore and offshore. That same day, the New York State Energy Research & Development Authority (NYSERDA) issued a press release announcing a multibillion-dollar provisional award totaling 2,490 megawatts (MW) to Equinor (NYSE:EQNR) (Stavanger, Norway) to build two massive offshore windfarms: Beacon Wind Phase 1, totaling 1,230 MW, and Empire Wind Phase 2, with 1,260 MW. The Norwegian company will be partnering with BP Plc (NYSE:BP) (London, England) on those projects.
Separately, Equinor also had a commitment to New York to construct the Empire Wind Phase 1 project, which will have 816 MW of generation capacity.
Industrial Info is tracking 29 active offshore wind projects in the U.S., valued at $37.42 billion. More than half of them have a "low" probability (0% to 69%) of beginning construction as currently scheduled, according to IIR's Global Marketing Intelligence Platform (GMIP). A "low" probability reflects IIR's judgment that the project is not likely to move forward, though being awarded contracts should increase the probability that a project will become more likely.
Last year, Dominion Energy (NYSE:D) (Richmond, Virginia) completed installation of two offshore wind turbines, totaling 12 MW, at its Coastal Virginia Offshore Wind project. Starting in 2024, the company will begin construction of up to about 180 additional turbines, for a total of approximately 2,640 MW of generating capacity. The project is expected to have a total investment (TIV) of about $6 billion, and is slated to begin operating in 2026.
Across the U.S., the bodies of water with the greatest dollar value of offshore wind-power projects under development are New England, Northeast and the West Coast. One project also is planned in the Great Lakes.
Click on the image at right to see a chart of active billion-dollar-plus offshore wind-power projects by body of water.
By contrast, IIR's GMIP shows 43 U.S. offshore wind projects have been cancelled or placed on hold. The value of those projects is about $40.1 billion.
"Offshore windfarms sound like a great idea, unless you're a commercial fisherman or a rich waterfront property owner," said Britt Burt, Industrial Info's vice president of research for the Global Power Industry. "Those groups have stymied many an offshore windfarm, and we expect that will not change with the new administration. Plus, the cost of a project, including the transmission lines to bring the power to shore, remains really high. If federal and state regulators push those projects through, I guess the parties will meet in court."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
During his term in office, President Donald Trump did include at least one offshore wind farm in his Executive Order 13927, issued June 4, 2020, instructing the Department of the Interior (DOI) and other agencies to expedite the permitting and construction of energy and infrastructure projects on federal lands and waters. The Vineyard Offshore Windfarm, a two-phase, $1.6 billion, 800-MW offshore windfarm developers want to build off the coast of Massachusetts, was one specific offshore windfarm that DOI was seeking to expedite. For more on that, see September 8, 2020, article - U.S. Interior Department Seeks to Expedite Energy, Mining Projects.
In fact, during the Trump administration, most of the activity on offshore wind-power development came at the state level, with various states -- including New York, New Jersey, Massachusetts and Rhode Island -- adopting aggressive goals and timelines for offshore wind as part of an effort to slow global climate change. For more on that, see June 17, 2019, article - Can U.S. Offshore Wind Find a Way to Realize its Vast Potential?
Right now, doubling offshore wind-power electric generation seems easily achievable, as the U.S. only has one operating offshore windfarm: the 30-MW Block Island project off the coast of Rhode Island. Built by Orsted at a cost of about $290 million, the windfarm began operating in late 2016. A few others are being constructed.
An aggressive expansion of offshore wind power does not lack for opportunities: The Department of Energy found that the U.S. could install 22,000 MW of offshore wind projects by 2030 and 86,000 MW by 2050, creating tens of thousands of jobs in communities along the Atlantic Coast.
In New York Governor Andrew Cuomo's state of the state address on January 13, he touted his state's commitment to building renewable energy generation onshore and offshore. That same day, the New York State Energy Research & Development Authority (NYSERDA) issued a press release announcing a multibillion-dollar provisional award totaling 2,490 megawatts (MW) to Equinor (NYSE:EQNR) (Stavanger, Norway) to build two massive offshore windfarms: Beacon Wind Phase 1, totaling 1,230 MW, and Empire Wind Phase 2, with 1,260 MW. The Norwegian company will be partnering with BP Plc (NYSE:BP) (London, England) on those projects.
Separately, Equinor also had a commitment to New York to construct the Empire Wind Phase 1 project, which will have 816 MW of generation capacity.
Industrial Info is tracking 29 active offshore wind projects in the U.S., valued at $37.42 billion. More than half of them have a "low" probability (0% to 69%) of beginning construction as currently scheduled, according to IIR's Global Marketing Intelligence Platform (GMIP). A "low" probability reflects IIR's judgment that the project is not likely to move forward, though being awarded contracts should increase the probability that a project will become more likely.
Last year, Dominion Energy (NYSE:D) (Richmond, Virginia) completed installation of two offshore wind turbines, totaling 12 MW, at its Coastal Virginia Offshore Wind project. Starting in 2024, the company will begin construction of up to about 180 additional turbines, for a total of approximately 2,640 MW of generating capacity. The project is expected to have a total investment (TIV) of about $6 billion, and is slated to begin operating in 2026.
Across the U.S., the bodies of water with the greatest dollar value of offshore wind-power projects under development are New England, Northeast and the West Coast. One project also is planned in the Great Lakes.
By contrast, IIR's GMIP shows 43 U.S. offshore wind projects have been cancelled or placed on hold. The value of those projects is about $40.1 billion.
"Offshore windfarms sound like a great idea, unless you're a commercial fisherman or a rich waterfront property owner," said Britt Burt, Industrial Info's vice president of research for the Global Power Industry. "Those groups have stymied many an offshore windfarm, and we expect that will not change with the new administration. Plus, the cost of a project, including the transmission lines to bring the power to shore, remains really high. If federal and state regulators push those projects through, I guess the parties will meet in court."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
