Wind

Vestas confirms eyeing offshore wind development in US Gulf of Mexico

Giant Danish turbine maker verified that its Cajun Wind project is underway via its American renewables subsidiary Steelhead

Vestas CEO Henrik Andersen.
Vestas CEO Henrik Andersen.Foto: Vestas
Danish turbine giant Vestas has confirmed to Recharge a move into US offshore wind development through its Steelhead Americas subsidiary.

The initial project, Cajun Wind, would be located in Louisiana state waters. Vestas declined to provide details.

The OEM is working “to actively engage both state and federal stakeholders on various US offshore wind opportunities,” said a company spokesperson for Vestas America.

“Significant progress has been made in initiating the first US offshore wind projects and we look forward to continuing to build on that momentum.”

Vestas is a key supplier to the global offshore wind market, with 8GW of turbines currently in operation. This is the company’s first foray into offshore wind development to emerge.

Patrick Courreges, spokesperson for the Louisiana Department of Natural Resources, confirmed to Recharge that Cajun Wind has requested to begin negotiations for acreage in state waters, but talks are still early stage and no other details have been released.
Vestas is the third developer to begin negotiating for acreage with the state, joining Norwegian firm Kontiki, operating as Pelican Wind, and Mitsubishi-owned Diamond Offshore Wind (DOW).

Scant information has been revealed as negotiations progress towards release of public notification.

Vestas is already preferred supplier to New York's largest offshore wind array, Equinor-BP’s 2.1GW Empire Wind 1 & 2 for its leading 15MW turbine and has a pipeline of nearly 5GW in the US market, according to renewable energy data analytics firm IntelStor.
The company is reportedly in talks with state officials to lease manufacturing space at the New Jersey Wind Port currently under construction in Salem County, 64 miles (102 km) west of Atlantic City to supply Shell-EDF's 1.5GW Atlantic Shores array.
It has floated nacelle assembly in upstate New York on sufficient orders generated by the state's round 3 tender.
Vestas’ Steelhead was formed in 2016 to create a new revenue stream by advancing existing markets and unlocking “new geographic markets in North America, including the exploration of US offshore wind opportunities”.

The subsidiary has built a wind development pipeline that exceeds 4GW and has been associated with more than 3.5GW currently in construction or operation.

Louisiana's offshore wind

The Gulf of Mexico (GoM) has emerged as a focus of US offshore wind on the strength of Louisiana's 5GW by 2035 target set by industry supporter Democratic governor Jon Bel Edwards.

While the Gulf has slower wind speeds and powerful hurricanes, Louisiana's net-zero ambitions require it to decarbonise its mammoth industrial sector, creating a ready market for clean energy as well as green hydrogen.

The state’s existing offshore energy supply chain is another advantage.

Some 60% of the US offshore oil and gas sector operates out of Louisiana, which has substantial steel fabrication and massive shipyards to supply the industry as well as an experienced workforce.

Two wind energy areas have been designated in federal waters of the Gulf off Louisiana and Texas, with an auction for five leases expected before the end of the year by US coastal energy regulator Bureau of Ocean Energy Management.

Development may come earlier in state waters, though. Edwards signed a law last year allowing offshore wind development in Louisiana state waters within three nautical miles (5.5 km) of shore.

Louisiana's streamlined offshore energy approval process and stakeholder support for development could drive sector development “several years before they can be successful in federal waters,” Edwards told an industry conference in New Orleans last May.

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Published 6 July 2023, 20:30Updated 7 July 2023, 15:15
AmericasUSVestasSteelhead