Offshore Wind Power Marks US Milestone Amid Ramped Up Uncertainty

Within the first U.S. public sale of deep-water Atlantic Ocean websites for business floating offshore wind power in federal waters, the U.S. Inside Dept. stated 4 Gulf of Maine lease areas bought for practically $22 million to 2 bidders—Avangrid Renewables, which gained areas totaling 223,462 acres about 30 nautical miles off Massachusetts; and Invenergy NE Offshore Wind, which gained areas totaling 215,634 acres that stretch so far as 46 nautical miles from Maine. 

The 4 areas with a complete of 6.8 GW of projected energy capability, additionally generated $5.4 million of whole bid credit to builders based mostly on “binding commitments” to speculate that quantity in workforce coaching, provide chain improvement and fisheries’ sector mitigation. 

Dan Burgess, power workplace director for Maine Gov. Janet Mills (D), stated the gross sales represented a “important milestone” for the state and the area because it develops offshore wind to scale back dependence on costly fossil fuels. “We sit up for following the following phases of those lease gross sales and constructing on our progress to foster this business,” he stated. Whereas Mills barred offshore wind improvement in state waters to accommodate Maine’s marine fisheries, she seems to tasks in federal tracts to satisfy a objective to put in 3 GW of offshore wind by 2040. 

However Jerry Leeman, CEO of the New England Fishermen’s Stewardship Affiliation, stated the lease gross sales was “a rushed regulatory course of.”

The public sale, the final within the Biden Administration didn’t appeal to as a lot developer motion as hoped, nonetheless—with greater than 14 bidders that had certified to bid and 4 different lease websites set to generate 6.4 GW that had been untouched. Contributors and observers cite nonetheless difficult challenge financials and ramped up pre-election negative rhetoric by Republican Donald Trump, his political allies and different opponents. 

Bidders Cautious?

Inside has held six offshore wind lease gross sales within the present administration and has a number of extra scheduled although 2028. Pure Sources Council of Maine local weather and clear power director Jack Shapiro stated the Maine public sale was profitable, in comparison with others within the Gulf of Mexico and offshore of Oregon that had been cancelled earlier this yr attributable to lack of bidders.

“The offshore market has nearly 30 GW of conditional orders globally, 21
GW of that are for tasks in Europe and the US, however difficult
economics proceed to delay conversion into agency orders,” stated world renewable power analysis agency Wooden Mackenzie.

Avangrid stated the brand new lease areas allow it “to assist progress floating wind expertise,” with about two-thirds of potential U.S. offshore wind power in waters deeper than 60 ft, the restrict for fastened sea-floor turbine foundations. The Orange, Conn., developer claims an offshore wind pipeline of 5 GW within the Northeast area past the Gulf of Maine tasks. These embody the 800-MW Winery Wind 1 challenge, of which Avangrid is a 50% proprietor, however that now faces an unclear completion delay attributable to a blade collapse in July. 

“Our participation demonstrates Invenergy’s steadfast dedication to advancing the American offshore wind business,” stated Daniel Runyan, the agency’s senior vp of offshore wind improvement in a press release. It was additionally chosen to develop a 2.4-GW challenge off New Jersey however lately requested a delay attributable to a turbine provider concern.

“Regardless of the final uncertainty across the upcoming presidential election, this can be a vote of confidence for an American business that has already obtained practically $3 billion of recent provide chain funding within the first 9 months of 2024,” stated Liz Burdock, CEO of U.S. advocacy group Oceantic Community, in a press release. The primary U.S. floating wind public sale, off the California coast in 2022, gained bids of $757 million on five parcels.

Floating Wind R&D Push

Based on sources, Maine floating wind challenge design and development will await extra outcomes from award in.August to the state of the primary federal analysis lease within the Gulf of Maine for a 15.000-acre website that might generate 144-MW of energy. It’s set to allow “vital technological, operational and scientific analysis,” stated the Maine Offshore Wind Initiative. 

“We’re wanting ahead to collaborating with the winners of the [commercial] Gulf of Maine leases, as their course of of choosing applied sciences will probably be kicking off sooner or later,” stated Habib Dagher, government director of the College of Maine Superior Constructions & Composites Middle, which has been growing the VolturnusUS+ floating offshore wind turbine pilot challenge that will probably be a part of the gulf analysis.

The challenge is advancing on schedule, he says, with Its patented concrete semi-submersible floating turbine hull “anticipated to be operational and linked to the grid in early 2025.” Dagher says the tcchnology “makes use of a damping system to scale back motions, which permits weight and dimension reductions of as much as 30%.” Funding for development comes from a U.S. Vitality Dept. analysis grant.

The college additionally seeks to construct a $456-million offshore wind port at Maine’s Sears Island, with an meant 2029 completion, nevertheless it couldn’t achieve a US Transportation Dept grant to cowl the associated fee. “It’s definitely a setback, however the state has extra plans for various port funding,” Dagher says, including that the business leases “reinforce Maine’s subsequent funding software.”

In one other hoped-for sector increase, Inside and the U.S. Protection Dept. on Oct. 29 agreed on the American Clear Energy Affiliation offshore wind convention in Atlantic Metropolis, N.J., to “additional institutionalize collaboration” to insure sector development and operation can co-exist with army exercise in all U.S. ocean areas. 

DOD concern over perceived interference had lengthy delayed floating wind improvement off the West Coast. Motion by the Biden Administration to resolve the stalemate was wanted to allow the California lease public sale. “We view clear power transition, offshore wind specifically, as important to nationwide safety,” stated Brendan Owens, assistant protection secretary for power, installations and surroundings.

Regardless of the politics, convention organizers stated nearly 65 GW of offshore wind capability is beneath improvement within the U.S., with robust union help. “Every part is dependent upon subsequent Tuesday,”  Sean McGarvey, president of North
America’s Constructing Trades Unions, advised attendees.

However even with a Trump win, “we may give attention to the basics that make a market stronger. Initiatives which are permitted will transfer ahead, and … we’ll work on infrastructure, ports, transmission,” advocate Burdock advised sector publication Recharge.

“Our objective persists regardless of who’s within the White Home,” stated New York State Analysis and Improvement Authority CEO Doreen Harris. Her company is working to satisfy the aggressive state plan to put in 9 GW of offshore wind power by 2035.