U.S. Playing Catch-Up with Offshore Wind

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Experience in the offshore oil and gas sector should draw interest from wind-energy developers looking for acreage in the Gulf of Mexico, the U.S. government said.

The U.S. Bureau of Ocean Energy Management (BOEM) outlined areas off the coast of Texas and Louisiana for potential wind-energy developments. The government believes the combined 682,500 acres have the potential to power an estimated 2.8 million homes.

Amanda Lefton, the BOEM's director, said the legacy of the region's offshore industry should be accommodative to growth in the renewable energy sector as well. Onshore, meanwhile, and Texas boasts the largest wind-energy footprint in the continental United States, which could help with the offshore buildup.

"These two wind energy areas represent exciting progress toward having the first offshore wind lease sale in the Gulf of Mexico, where there is a mature industry base and the know-how to advance energy development in the outer continental shelf," she said. "The region can play a central role in our nation's clean energy transition to support good paying jobs (and) fight climate change."

The Biden administration set a goal of deploying 30 gigawatts (GW) of offshore wind energy capacity by 2030. As of now, there are only two offshore wind installations working at utility scale--the Block Island facility offshore Rhode Island and the Coastal Virginia Offshore Wind installation. Combined, those two facilities generate about 42 megawatts of power. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant database can click here for the Block Island plant profile, and here for the Coastal Virginia profile.

Offshore leases last year helped lead to a 13.5% increase in planned wind-energy developments relative to 2020 levels, with some 40 GW in various stages of development.

"This region has been critical in developing our modern domestic energy infrastructure," said Josh Kaplowitz, the vice president of offshore wind at the American Clean Power Association. "And now, with offshore wind, it will also be recognized as a leader in shaping the global energy transition while cultivating energy independence, reducing carbon emissions and creating tens of thousands of full-time jobs."

Even if this administration reaches its goal, however, the United States will still be far behind the rest of the world in terms of wind-energy development even with its vast coastal acreage. The distinction of global leadership goes to China. All of the wind energy capacity installed now in the United States represents less than half of what's operating now in China.

South Korea, meanwhile, is planning an offshore wind-energy facility that alone would boast 8.2 GW of peak capacity. Nothing in the United States comes anywhere close to that. Its largest windfarm is the Alta Wind Energy Center in California with 1.5 GW of installed capacity. Click here for the Alta Wind plant profile.

Europe is aiming to install around 100 GW by 2030 and development is also taking off in Asia.

Click on the image at right for a graph showing offshore windfarm growth in China, Germany, the U.K. and other countries, from 2016 through 2022.

Even the Energy Department recognizes it's behind the curve, but it believes the sector is moving beyond the nascent stage even though challenges remain.

"As these regions integrate offshore wind energy into their electricity markets, the industry will need to tackle new technical challenges, such as hurricane survival, anchoring in deeper water, and lower average wind speeds, but through continued industry research the solutions appear to be attainable," the department said in an annual report published in August.

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