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This is an op-ed piece by Sam Salustro , Vice President of Strategic Communication at Oceantic Network, the US offshore renewable energy industry organisation.
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Six months occupied with questions about the upcoming election have muddied the waters, shifting the conversation about offshore wind energy away from the real groundwork being laid and progress already underway in the industry. The fact is, the offshore wind industry spans far beyond our nation’s coastlines, stretching inland to our heartland, from the Great Lakes to the Gulf of Mexico. Most importantly, it’s putting Americans to work, bringing $33 billion of new investment, economic development, and thousands of jobs to communities across the country.
With four commercial-scale projects under construction and substantial advancements in both federal and state commitments, the industry is poised to bring even more benefits across America.
This summer marks a significant milestone for the burgeoning industry. Ørsted’s Revolution Wind and Sunrise Wind, Dominion’s Coastal Virginia Offshore Wind (CVOW), and Vineyard Wind 1 are set to add 5 GW of clean energy to the grid, enough to power more than 1.75 million homes and businesses. These projects not only represent a substantial increase in our renewable energy capacity but also highlight the industry’s rapidly growing supply chain, which spans 37 states and has brought $23 billion in investments to the U.S. market as well as at least 3,700 jobs. A pipeline of construction-ready projects waits in the wings, with an additional 9 GW approved for construction by the federal government and four more projects under review.
These advancements are creating confidence in the market that is delivering investments across the board. We’ve seen more than $2 billion in supply chain investments just in the last six months, highlighted by LS Greenlink and Hellenic Cables investments in new cable manufacturing facilities in Chesapeake, Va., and Baltimore, respectively. More funding is going into steel facilities in Texas and Ohio bolstered by $200 million in federal Inflation Reduction Act tax credits for offshore wind manufacturing. These investments are critical to maturing the U.S. market by decreasing our reliance on the oversubscribed global market and bringing down local energy costs.
Enabling infrastructure investments in our ports and transmission systems is unlocking future development and giving greater market certainty. In June, Equinor broke ground on the South Brooklyn Marine Terminal, an $861 million facility that will employ 1,000 workers. California has taken great strides to set up its initial market with $4.6 billion going to transmission and potentially $475 million for ports should a voter bond measure pass.
Moreover, the launch of the ECO Edison, the U.S. market’s first purpose-built service operations vessel (SOV) for offshore wind, the completion of 13 newbuild crew transfer vessels (CTVs), and the retrofit of yet another 10 vessels of varying sizes in shipyards in the Gulf of Mexico and New England demonstrate the positive impact on the nation’s maritime industry. Furthermore, there are nearly 30 more offshore wind-dedicated vessels ordered or under construction at U.S. shipyards, orders worth roughly $1.3 billion and breathing new life into domestic shipbuilding. These developments are crucial for the efficient operation and maintenance of offshore wind farms, ensuring that they can deliver reliable and sustainable energy for years to come.
So, the U.S. market has made great strides in supply chain, infrastructure, and permitting advancement. On the other side, states, the main market drivers for offshore wind, are only demanding more power generation. New York, New Jersey, Maryland, and Delaware have all made significant strides, from finalizing contracts and opening new offtake award rounds to passing new legislation that expands goals and ease transmission constraints. It’s crucial that the industry maintains support with the public and their elected officials that we are delivering power reliably and affordably and creating jobs.
A new study out of New England found that building out 9 GW of offshore wind would save ratepayers $600 million a year on their utility bills. And we, at the Oceantic Network have launched a “jobs tour” to spotlight the thousands of Americans working in the industry both near the coast and in supporting factories far inland. In its second year of commercialization, with 5 GW of projects under installation, the U.S. offshore wind industry is gaining strength and laying the long-term foundation to continued success. This momentum creates resiliency in our supply chain and market development, and in public spheres that drive the long-term future of the industry.
All views and opinions expressed in guest posts and opinion pieces on offshoreWIND.biz are those of the authors.
about 2 years ago
This is an op-ed piece by Sam Salustro, Vice President of Strategic Communication at Oceantic Network, the US offshore renewable energy industry organisation. Six months occupied with questions about the upcoming election have muddied the waters, shifting the conversation about offshore wind energy
