Why we're staying out of the US offshore wind race: Pattern Energy CEO
Hunter Armistead says other 'very qualified' companies taking up mantle as it joins likes of NextEra in keeping clear
“We have continued to look at whether, or not, that is something we should be able to step into the fray and take on as part of what we do,” he said. “So far, we have found there is a significant number of very qualified people who seem to be well-positioned to deliver on those opportunities.”
Pattern is based in San Francisco, was acquired in March 2020 by Canada Pension Plan Investment Board and later taken private.
The sector promises potential huge long-term growth this decade and beyond with President Joe Biden targeting 30GW of capacity in commercial operation by the end of 2030 versus 42MW now.
The demand is there. On 1 January, 10 states had set more than 81GW in procurement targets led by California with 25GW, New Jersey (11GW), and New York (9GW). To incent supply, the Inflation Reduction Act, the nation’s landmark climate law signed by Biden last August, provides generous long-term federal subsidies.
One reason is the high bar to entry given the very high capital requirements. Other significant challenges include lengthy development timelines and uncertain permitting outcomes, major electric grid shortcomings, over-reliance on foreign supply chains, and financial, legal, and political risks.
Armistead said Pattern is focused on its baseline onshore business in North America consisting of a multi-gigawatt solar and wind project pipeline and two ambitious major clean energy interstate transmission initiatives.
“That doesn’t mean we won’t potentially find the right moment,” he said. “We haven’t seen that we were bringing anything unique to the table versus whether it’s oil companies that already have the deep offshore resources internally, Orsted, and a few others that are just more advanced than we are.”
In Japan, Pattern gained offshore wind experience with its 112MW Ishikari project that includes energy storage under construction in Hokkaido.