The reversal of the US government’s energy policy under President Joe Biden is the basis for a thriving US offshore wind industry, as the federal government wants to speed up the environmental review to make foreign winds a major contribution to the new clean energy objectives. In the United States, the wind from the sea did not really start, with only two small wind farms abroad having a combined capacity of less than 50 megawatts (MW). By comparison, Europe has installed 113 wind farms abroad in 12 countries 25 gigawatt (GW) of total wind capacity abroad.
The USA is breaking records according to the American Clean Power Association in 2020 on wind, solar and storage facilities, with records for each of them.
Offshore winds, however, have lagged far behind, also due to lengthy environmental reviews by federal agencies and the consideration of the pros and cons of foreign wind farms being visible on beaches or in commercial fishing grounds.
Federal policy change
But now President Biden has set a priority policy in one of his first countries on the foreign wind executive action to deal with the climate crisis. President Biden has suspended Home Secretary to suspend new oil and natural gas leases on public lands or foreign waters to identify by 2030 steps that could be taken to double the production of renewable energy from foreign winds.
When compared to current production, it’s really low, the Wall Street Journal notes.
But the radical shift in energy priorities could spur more projects, as a growing number of U.S. states on the East Coast, just think of New York, set ambitious goals for clean energy.
State established more than 29 GW according to the American Clean Power Association, by 2026 offshore wind generation targets, while developers plan to bring 9.1 GW of offshore wind online by 2026 by developing 13 offshore wind projects.
The 800 MW Vineyard Wind project, about 15 kilometers off the coast of Martha’s Vineyard, will be the first large-scale wind farm in the United States and will start delivering energy in 2023.
The Bureau of Ocean Management (BOEM) said earlier this month that this would happen. resumes the environmental review of the Vineyard Wind project. The Trump administration canceled the entire review late last year following a request from Vineyard Wind developers to interrupt the process to see if the design needed to be customized after switching from turbine suppliers.
“The wind abroad has the potential to help our country combat climate change, improve resilience through reliable power and encourage economic development to create well-paying jobs,” said BOEM director Amanda Lefton. .
The developers of Vineyard Wind, a joint venture between Avangrid Renewables and Copenhagen Infrastructure Partners (CIP), said after the resumption of the federal review process:
“We look forward to working with the agency as we embark on an industry that will create thousands of well-paying jobs, while also taking meaningful steps to reduce the impact of climate change.”
Smoother permissible processes could create $ 166 billion industry
With supportive policies and smoother hiring and admissions processes, offshore wind development can create great value for the U.S. economy and create thousands of jobs, Wood Mackenzie said last year in research commissioned by sector associations.
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This can be facilitated by leasing and admitting wind projects abroad up to US $ 166 billion in foreign wind investments by 2035 in the United States, the research reads. According to the sector associations, the potential for the US offshore wind industry is enormous, if the right policies are put in place.
Wood Mackenzie expect that almost 25 GW of wind capacity abroad will be added by 2029.
“States have already selected 9 GW of capacity, which is responsible for more than 70% of the projected build-up by 2026. And in New England and New York, 80% of wind generation will be located abroad during this period,” WoodMac said. said in a report. in June 2020.
“Winds abroad can be harnessed on a large scale, making it a powerful tool for policymakers to pursue more ambitious targets for clean energy,” said Max Cohen, chief analyst at Wood Mackenzie.
What’s more, the U.S. foreign industry also offers opportunities to key European oil players, Cohen added.
Big oil contests big for US offshore wind
Some of the Big Oil in Europe, eager to showcase their low-carbon energy commitments and expand clean energy portfolios, have already tried to seize these opportunities.
BP made its first move to the foreign wind market in September with a strategic partnership in US foreign wind assets with Equinor in a deal worth US $ 1.1 billion.
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BP 50 percent bought in Equinor’s Empire Wind and Beacon Wind assets, along Long Island and offshore Massachusetts, respectively, and the strategic partnership will develop up to 4.4 GW from these two offshore wind projects. The two majors will also jointly seek other U.S. offshore wind events.
Equinor and its partner BP were selected last month for the the largest award for US offshore wind ever to date to supply New York State from the first and second phases of Empire Wind and Beacon Wind with wind power abroad with a total power of 3.3 GW to the state.
“The U.S. east coast is one of the most attractive offshore wind growth markets in the world,” said Anders Opedal, CEO of Equinor.
With supportive policies at the state and federal levels, U.S. offshore wind could become an even more attractive growth market.
By Tsvetana Paraskova for Oilprice.com
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