Trump’s anti-offshore wind agenda threatens 73GW pipeline and billions in investment: ACP
Industry lobby group highlights $13bn committed to supply chain development that has been all but stopped by executive action
US offshore wind's “unprecedented” progress last year, including over 4GW in construction and operating capacity reaching nearly 200MW, is now at risk “in the wake of federal policy changes in early 2025,” American Clean Power Association (ACP) said in its 2024 Annual Market Report.
The project was 30% complete, and Equinor had already spent some $2.5bn, including a major upgrade to the South Brooklyn Marine Terminal (SBMT) that raised the project’s total price tag to $7bn. All in, Equinor faces a loss of $5bn, according to analysts, including cancellation penalties and other fees.
While Trump is the industry’s greatest challenge so far, US offshore wind had faced inflationary headwinds and supply chain turbulence since 2022 that saw project after project collapse.
Last year, state procured some 7.6GW of offshore wind power, but “faced 8.9GW of cancelled contracts or withdrawn provisional contracts,” ACP noted.
Lease sales have raised over $6bn for the federal government, ACP said, while rent and operating fees are set to add another $6.5bn if all 73GW in the pipeline is developed and operated for its full lifecycle.
The sector has likewise boosted US steelmaking, including JSW Steel's $110m expansion to its Baytown, Texas, manufacturing facility that “will enable production of monopile steel slabs to directly support the offshore wind industry,” the report said.
The vessel, built by Seatrium at its Brownsville, Texas, yard, this year will begin turbine installation at Dominion’s 2.6GW Coastal Virginia Offshore Wind array currently in construction.
“Nearly 50 vessels have been ordered or are in-service for the offshore wind industry,” ACP said, adding that “of the 24 new build or retrofit offshore wind vessels in operation, half were launched in 2024.”
ACP highlighted that states are looking for some 115GW in offshore wind power over the next decade, driven not only by clean energy and climate goals but also power demand that is set to surge 35-50% by 2040.
“These projects could power nearly 30 million US households, though the future of their development remains unclear,” ACP conceded.
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