Offshore wind will grow from a small base to account for 50 per cent of ocean capital expenditure (capex) in 2050, according to DNV’s Ocean’s Future to 2050 report.
Currently, 80 per cent of capex in the Blue Economy is invested in the offshore oil and gas sector, but by 2050 that number will have dropped to 25 per cent, according to DNV.
Offshore wind is also projected to provide about as much energy as offshore oil by 2050, the production of which will shrink 51 per cent compared with 2019 levels.
The decreasing prominence of oil and gas will be largely responsible for capex inflows into the Blue Economy being less in 2050 than today, whilst operating expenditure will increase below GDP growth, the report states.
Capex in the Blue Economy is expected to reduce from USD 517 billion in 2018 to USD 461 billion in 2050.
Race for Ocean Space
The exponential growth of offshore wind power will also be the main driver of a nine-fold increase in demand for ocean space by the middle of the century.
The report forecasts that by mid-century, offshore wind will require ocean space which is the equivalent to the landmass of Italy.
The growth will be particularly pronounced in regions with long coastlines and presently have low penetration of offshore wind.
Demand for ocean space is set to grow 50-fold in the Indian Subcontinent and 30-fold in North America.
The Blue Economy will be more focused on Asia with Greater China set to account for more than a quarter of capex by 2050 as it builds out its offshore wind capacity and marine aquaculture, according to the report.
”The Blue Economy is entering a period of sectoral and geographic diversification,” said Remi Eriksen , Group President and CEO of DNV.
”Currently, the regions which benefit most from the ocean in economic terms are those with access to oil and gas fields off their coastlines. But as the world decarbonizes and the need for renewable energy grows, countries not able to be part of the age of fossil fuel can be part of the age of wind.”