US Wind brings in Spain's Haizea for Sparrows Point Steel monopile maker in Maryland
Move highlights ramping supply chain activity as tax credits spur investment as well as American sector's ongoing reliance on European expertise
Maryland-based offshore wind developer US Wind has brought in Spanish foundation and tower maker Haizea Wind Group to manage its long-awaited Sparrows Point Steel manufacturing facility in Baltimore County.
US Wind is also developing its 270MW MarWin array for the state.
The factory will be located on 100 acres (40 ha) at the Tradepoint Atlantic logistics hub in Baltimore County, site of Bethlehem Steel’s now shuttered Sparrows Point steel mill, once the largest in the world.
“The partnership between US Wind and Haizea to lead Sparrows Point Steel will create one of the premier offshore wind industrial facilities in the world,” said Jeffrey Grybowski, US Wind CEO. “Haizea’s depth of knowledge and expertise will cement Maryland’s role as a hub of offshore wind manufacturing in the US.”
US Wind said that the manufacturing facility would have a capacity of 100 monopiles annually and is part of the developer’s commitment to sourcing at least 19% of total procurement in Maryland for a total exceeding $570m.
Haizea Wind was only founded in 2017 but has been expanding rapidly with multiple acquisitions to become one of Europe’s major suppliers of offshore wind steel components.
Borja Zarraga, Haizea Wind Group’s CEO, said Haizea “is highly committed to this value-creation project for the industrial sector of Baltimore, the state of Maryland, and the US.”
Manufacturing tax credits
Starting the end of last year and continuing through 31 December 2032, domestically produced fixed bottom foundations are eligible for a tax credit of 20 cents per kilowatt of capacity, while towers would receive 30 cents. These amounts are multiplied by the rated capacity of each completed turbine.
Industry is awaiting guidance from the US Treasury Department on qualifications, including the use of American-made steel and union labour. Surging inflation and interest rates have likewise challenged investment into the industry.
US Wind confirmed that the facility is still in the detailed design and engineering phase and working towards securing the necessary permits for the site.
European reliance
The initial two US commercial scale arrays – 800MW Vineyard Wind 1 and 132MW South Fork – likewise rely heavily on components and installation firms from Europe.
The two projects have a total capacity of 966MW and will bring $735m in investment activity to the state, the developer said.
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