Wind

Equinor hits the brakes on California floating wind plans

Norwegian oil & gas giant says pause down to global strategy not election of Donald Trump

Equinor US renewables chief Molly Morris.
Equinor US renewables chief Molly Morris.Photo: Equinor
US Offshore Wind Editor, Recharge

Oil & gas giant Equinor has hit the brakes on a planned 2GW floating wind power project off the US state of California.

Development of Atlas Wind has been paused in line with a global strategy by the Norway-based group to prioritise later-stage projects, a company spokesperson told Recharge.

We are “prioritising execution phase projects and de-prioritising, to a certain extent, some of the earlier phase projects,” the spokesperson said following local media reports of a two or three-year suspension to activities in connection with the lease.

“Atlas, as a project that was not going to be operational into the 2030s, is one that we consider a longer-term opportunity,” he added.

California adds to a list of markets where Equinor has either exited or hit the brakes on offshore wind, including Portugal, Spain, and Vietnam, amid concerns over rising costs in the sector. The Norwegian group is also reportedly looking at reducing its renewable energy division by some 20%.
The company however played down local media reports that the decision was connected with the election of offshore wind opponent Donald Trump as US president, a factor cited by some US east coast developers.
“The decisions that we've been making around Atlas predated the presidential election,” the Equinor spokesperson told Recharge.

So far, development activities for Atlas have been limited to an initial geophysical survey of the seabed in preparation of a site assessment.

“We completed this first survey, and decisions had not been made yet about when our next survey was going to take place,” the spokesperson added.

Fishing groups take action

Equinor, a pioneer of floating wind globally, won the lease off Central California in a federal leasing round held in December 2022 that saw three leases in Morro Bay and two more in the Humboldt WEA off Northern California secured for some $757m.
Launching Atlas Wind a year ago, Equinor Renewables America chief Molly Morris said the project represents “a symbol of strength and fortitude, and most importantly perseverance, as we bring tested, world-class technology to California’s Central Coast”.

Tom Hafer, president of Morro Bay Commercial Fishermen’s Organisation (MBCFO) said Equinor had informed him of the pause in Atlas Wind last month.

Hafer told Recharge that Ocean Winds, the EDPR-Engie joint venture developer, carried out surveys at its own Morro Bay lease from August to November.
“Demand for electricity is expected to double by 2050 nationwide, given continuing data centre growth and rising electrification, and California is looking to offshore wind as an important element in the diverse long-term energy portfolio needed to keep the lights on and the economy thriving,” Tyler Studds, CEO of Golden State Wind, told Recharge.

MBCFO is suing state regulators in the California Superior Court over their approval of survey activities for Equinor and Ocean Winds, claiming fish catches plummeted by two-thirds in the wake of offshore wind surveying.

US developer Invenergy confirmed that it continues to develop the Even Keel project on the third lease in Morro Bay.

“Over the last year we have progressed key development priorities and remain focused on advancing the industry to bring the economic and energy reliability benefits of offshore wind to California,” the company told Recharge.

California's floating plans

California is targeting 25GW of floating wind capacity by 2045, part of its drive towards a 100% clean energy grid, but sector costs remain stubbornly high.

The US National Renewable Energy Laboratory sees cost for projects delivered in the early 2030s as high as $280/MWh, far above fixed-bottom’s $125/MWh estimate.

Operational projects such as Equinor’s 88MW Hywind Tampen in the Norwegian North Sea are in depths of around 200 metres, while California’s arrays will be in waters five times deeper.

California likewise faces thorny issues of lack of port capacity suitable for the massive needs of the offshore wind near Morro Bay, while Humboldt development will require billions in transmission capacity expansion to deliver the power to load centres farther south.

On the US eastern seaboard, Equinor is continuing to advance its Empire Wind projects off New York and was in August a winner in federal leasing in the Central Atlantic.

(Copyright)

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Published 17 December 2024, 08:46Updated 17 December 2024, 16:24
AmericasUSCaliforniaOcean WindsEquinor