Wind

Half of US offshore wind power national goal 'at risk' due to lack of coastal industry: NREL

Report finds an almost $23bn spend needed on manufacturing, ports, and vessel capacity for industrial growth to meet government target of 30GW of plant by 2030

Blades being loaded for US' first project in federal waters, Dominion Energy's CVOW pilot
Blades being loaded for US' first project in federal waters, Dominion Energy's CVOW pilotFoto: Recharge
  • Tim Ferry
Half the US offshore wind project pipeline needed to meet President Joe Biden’s “national goal” of 30GW is at risk of being delayed beyond the 2030 target because of lack of industrial port and vessel and will require at least $11bn in investment, according to a report released by a consortium led by the National Renewable Energy Laboratory (NREL).

Produced with the Business Network for Offshore Wind (BNOW), the Department of Energy, and the National Offshore Wind Research and Development Consortium, the report calculates that the future of the burgeoning US offshore wind sector hinges on investment of $23bn into coastal and port manufacturing infrastructure, wind turbine installation vessels (WTIV) and other specialised ships.

It also lays out a road map for developing a supply chain that would be capable of delivering 2,100 turbines, 6,800 miles (10,944km) of cable, numerous vessels, and tens of thousands of qualified workers through to the end of the decade.

“To meet our ambitious clean energy national goals, American manufacturers must play a larger role to accelerate our transition,” said Ross Gould, vice president for supply chain development and research at BNOW.

“This road map lays out the challenges and collaborative actions needed to bring more domestic companies into the supply chain and the opportunity those businesses bring.”

It is the second report published by the consortium, which included consultancy DNV, the Maryland Energy Administration, and the New York State Energy Research & Development Authority, following on from one last March that evaluated offshore market size and demand.

Building a domestic offshore wind energy supply chain by 2030 would require at least $22.4bn in investment and could generate up to 49,000 jobs annually, the report said, adding that this would also ensure developers have access to componentry as “existing international manufacturing facilities likely will not have sufficient capacity to provide components for the US and global demand”.

Port and vessel capacity are critical needs and the 2030 30GW buildout requires between 4-6 WTIV totaling $3.5bn and some $8bn for new and upgraded marshalling and manufacturing port infrastructure.

Costs of building new infrastructure would be offset by reduced transportation costs, avoided import tariffs, and manufacturing incentives in the landmark Inflation Reduction Act, but higher labour costs might deter investment, and some components do not qualify for incentives.
NREL forecasts that a domestic supply chain could be built in 6-9 years and deliver 4-6GW of capacity annually. Further investment would be required post-2030 to meet the Biden administration’s further goals of 15GW of floating wind by 2035 and 110GW by 2050.

US manufacturers are likely to struggle in several key market segments, such as permanent magnets, electrical systems for offshore substations, and steel plates for monopiles and towers, but investment is already ongoing.

US steel maker Nucor recently produced its first offshore wind-grade steel in its new Kentucky mill, which is poised to supply a burgeoning monopile and tower making industry, with manufacturing capacity being built in Maryland, New Jersey and New York.
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Published 24 January 2023, 15:41Updated 24 January 2023, 15:56
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