Expert Opinions: The Future of Offshore Wind in the US

The US offshore wind industry is at a critical juncture. In the past year it has seen new opportunities and made remarkable progress, but also faces serious challenges. It needs new business partners in a variety of sectors including port infrastructure, shipbuilding, and maritime operations.

And US market troubles related to inflation and supply chain crunches have often overshadowed the strong groundwork being laid, the real achievements coming to fruition, and the true benefits of offshore wind.

Despite these challenges, states and the federal government continue to reaffirm their commitments to offshore wind through new leasing rounds and supply chain initiatives, including announcements made for new vessels, ports, and manufacturing facilities. Our industry is ripe with opportunities for global companies, particularly those in maritime industries.

INFLATION REDUCTION ACT

At the start of 2023, the federal government concentrated activity on the offshore wind sector and other renewable energy industries with new opportunities like the Inflation Reduction Act (IRA) and other initiatives from the Biden-Harris Administration. The IRA has provided and continues to provide major production and investment tax credits for offshore wind projects. The IRA—along with the Biden-Harris Administration’s Hydrogen Shot and the 2021 Bipartisan Infrastructure Law—has helped the federal government strengthen the market and open new possibilities for offshore wind in green hydrogen production.

As we near the end of 2023, state demand for offshore wind projects has reached 86.9 GW. The first turbines were completed at the Vineyard Wind and South Fork Wind projects, our first commercial-scale offshore wind farms. In addition to this historic milestone, several more projects were approved for construction, states made new efforts to coordinate on offshore wind development, and the supply chain saw new investments and strong performance among participants. The industry is evolving to incorporate ocean renewables that are complementary to offshore wind, such as green hydrogen, and the Network is evolving alongside it.

WINDS OF CHANGE

Amid this monumental progress, the US offshore wind industry’s supply chain is yet to be fully formed. For the past decade, Oceantic Network (formerly known as the Business Network for Offshore Wind) has worked tirelessly at bringing new companies into the industry by educating them on the latest information, making connections, and sharing how they can identify and capitalize on new opportunities. This work is critical to the success of the industry, and at Oceantic we are driven by the understanding that we need new partners to achieve the manufacturing capacity necessary for a full US buildout of offshore wind.

The offshore wind market isn’t perfect, but we’re just getting started and our foundation is strong. There’s never been a better time to make an entrance. We invite you to join us in building a network that will usher in a global offshore wind future and support the development of other ocean renewables technology.

This story was originally featured in ON&T's December Special Edition 2023 issue. Click here to read more.