The US offshore wind project pipeline is rapidly expanding, with roughly 51.4 GW of projected capacity spread across 32 leases – enough to power more than 20m homes – a new report by Washington-based clean power trade group the American Clean Power Association (ACP) has revealed.
Although the US currently lags behind other countries in terms of installed offshore wind capacity, the increasing number of projects in development signals significant progress in a sector expected to support over 80,000 American jobs by 2030, with industry investment set to deliver up to $25bn per year in economic output, according to an earlier ACP report.
Within the 32 leases in active development, there are 18 projects in early development and 18 projects in advanced development. Early development projects make up the majority of the pipeline, representing close to 33.9 GW.
Roughly 43.1 GW of the project pipeline is on the East Coast, with the rest spread across five leases on the West Coast. New York leads all states with a total of 4,362 MW of offshore capacity in the pipeline, with 132 MW under construction. New Jersey follows with 3,758 MW of capacity in the pipeline, all of which is in advanced development. Massachusetts is the only other state with an offshore wind farm under construction.
The sector is also driving domestic shipbuilding with more than 30 new or retrofit vessels ordered or under construction at US shipyards. The majority of those are crew transfer vessels, but there are also three service operation vessels (SOVs) ordered or under construction with three more existing vessels being retrofitted as SOVs to serve the US offshore wind industry. While Dominion Energy’s Charybdis wind turbine installation vessel (WTIV) stands out as the sole WTIV currently under construction, there are plans to build vessels for feeder installation strategies and similar installation solutions.
The domestic supply chain for offshore wind is also set for significant growth, with fourteen facilities announced or under construction. Investment announcements for major offshore wind components exceed $1.7bn, and with three state solicitations pending, more supply chain investments are anticipated, bolstering the sector’s expansion, the report said.
Despite these encouraging trends, APC highlighted rising project costs due to supply chain disruptions, commodity price increases, macroeconomic inflationary pressures, and higher interest rates. “Rising steel prices in particular pose challenges for offshore wind developers, as steel represents a significant portion of project material costs. Lengthy and unclear permitting and regulatory timelines make these issues worse. Resolution of these permitting and siting challenges, along with improving economic conditions, would strengthen the economic viability of offshore wind projects,” ACP said.
