Many federal and state net zero initiatives, which aim to effectively reduce greenhouse gas emissions as close as possible to zero, are driving efforts to increase offshore wind output. As a result of the ability to install larger turbines offshore, this renewable energy source has the potential to produce more electricity per unit than its installed solar and onshore wind turbine counterparts. The U.S. can position itself to become a global leader in renewable energy, with offshore wind at the core.
The global offshore wind market is expected to expand significantly over the next two decades, becoming a $1 trillion industry by 2040, according to the International Energy Agency. Such explosive growth means that offshore wind would make up nearly 10% of renewables-based energy globally. The U.S. has established a goal of generating 40 gigawatts from offshore wind by 2050, a dramatic increase from 42 megawatts of output in 2022. This significant jump will require coordination to achieve the permitting, design, construction, and operation and maintenance of offshore wind farms and the associated transmission systems required to get the electricity delivered to homes and businesses.
Conquering Challenges
Offshore wind farm developers must navigate the supply chain and procurement of key components needed. To service the growing renewable energy demand and ultimately meet the U.S. goal for 2050, the supply chain must be bolstered in a variety of ways, with one being the provision of more financial benefits for U.S. manufacturing companies. Because of financial backing for manufacturing companies through funding such as the new infrastructure law, developers are incentivized to be more interested in the U.S. supply chain as a viable option for developing offshore wind farms.
Additionally, there must be a clear connection between job creation and the benefits for communities manufacturing products for an offshore wind farm. Both are important. Installing wind turbines is a costly endeavor, and the benefits of the solution must be readily apparent for key decision-makers at the state and municipal levels.
“Offshore wind is part of the energy solution of the future, and the benefits the industry provides are invaluable,” says Jason Cabral, a vice president at Burns & McDonnell. “We are at a pivotal moment where decision-makers have the chance to embrace this renewable energy alternative. Offshore wind projects offer an opportunity to financially bolster our communities with high-paying technical and construction jobs and are critical to a tomorrow powered by clean energy.”
Such momentum is building, despite federal regulations that can make compliance and transportation logistics tricky for wind turbine installation. The Jones Act, a law mandating only U.S.-built and -operated vessels be utilized to move goods between U.S. ports — an offshore wind turbine is currently classified as a port — complicates matters. Given that the U.S. supply chain is still in development, components for the initial wind farms in development are being shipped around the world. These parts are often staged at countries outside the U.S. before being transported to the site of the offshore wind farm. Not only costly and time-consuming, the complex transportation process potentially delays shipments and creates lengthy project schedules. The U.S. offshore wind sector is beginning to establish its own fleet of Jones Act–compliant vessels, but this will take years to develop.
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