Report: Offshore Wind Supply Chain Worth $109B Over 10 Years

October 15, 2021by Wayne Parry, Associated Press
Report: Offshore Wind Supply Chain Worth $109B Over 10 Years
Wind turbines spin to generate electrical power in Atlantic City, N.J., on Wednesday, Feb. 17, 2021. A report released Tuesday, Oct. 12 by a group studying the economics of the offshore wind industry predicts that the industry’s supply chain will be worth $109 billion over the next decade. (AP Photo/Ted Shaffrey, File)

ATLANTIC CITY, N.J. (AP) — A group studying the economics of offshore wind energy in the U.S. says building and operating the nascent industry will be worth $109 billion to businesses in its supply chain over the next 10 years.

The report by the Special Initiative on Offshore Wind comes as states on both coasts and the Gulf of Mexico are moving to enter or expand their role in the industry, and are making crucial decisions on what to spend and where to spend it.

Multiple states, including New Jersey, want to become the hub of the supply chain that will support offshore wind energy in the U.S., planning and building onshore support sites for manufacturing turbine blades and other components of wind power.

The group, affiliated with the University of Delaware, estimated the market at $70 billion just two years ago, but updated its estimates as the industry continues to grow quickly.


One caveat: the report notes that most of the initial components to be used for U.S. offshore wind projects will come from Europe. It does not attempt to predict when or where a shift might occur.

The U.S. has set a goal of generating 30 gigawatts of power from offshore wind by 2030 — enough to power over 10 million homes.

Supply chain spending is already happening.

On Friday, Orsted and Eversource signed an $86 million supply chain contract with Riggs Distler & Company, Inc. to build foundation components for wind turbines for New York’s Sunrise Wind project off Montauk Point on Long Island that will be able to power 600,000 homes. 

In August, those two companies also signed a deal with Kiewit Offshore Services for the first American-built offshore wind substation, which will be a part of the same Long Island project. The substation will be constructed in Ingleside, Texas, near Corpus Christi.


“These investments have been a vision for a long time, but they are becoming a reality today,” said Tory Mazzola, an Orsted spokesman.

New Jersey has often said it wants to be the east coast hub for offshore wind, and is building onshore manufacturing and assembly facilities it hopes will be used by many projects.

“We believe the offshore wind industry is going to bring billions of dollars into New Jersey,” said Joseph Fiordaliso, president of the state Board of Public Utilities. “It’s a lot of money, to be sure.”

The expenditures forecast in the report include nearly $44 billion on 2,057 offshore wind turbines and towers; $17 billion on 2,110 offshore turbine and substation foundations; nearly $13 billion on nearly 5,000 miles (8,000 kilometers) of cables; $10.3 billion on 53 on-and-offshore substations; as well as other construction and operational costs.

It also projects the amount of power states will generate from offshore wind by 2030. New York is forecast to have 9,314 megawatts; New Jersey to have 7,558; Massachusetts to have 5,604; Virginia to have 5,200; Connecticut to have 2,108; Maryland to have 1,568; and Rhode Island to have 1,000.

Currently, 8,000 megawatts worth of power are under contract in those states.

“Collectively, these state commitments are equivalent to the electrical capacity of 32 large nuclear power plants, an extraordinary (capital expenditure) that requires many suppliers,” the report read.


The initiative describes itself as an independent project at the University of Delaware’s College of Earth, Ocean and Environment that supports the advancement of offshore wind. It receives funding from organizations including the Rockefeller Brothers Fund.

Offshore wind energy is viewed as a way to combat climate change by providing the globe with cleaner energy. At a forum in Atlantic City last week on offshore wind, New Jersey’s environmental protection commissioner said the industry will come with adverse impacts as well as benefits, and said much more study is needed about its impact on the ocean and sea life.

A+
a-

In The News

Health

Voting

Energy

October 5, 2022
by Dan McCue
New FTC Labeling Rule Aims to Help Consumers Reduce Energy Costs

WASHINGTON — The Federal Trade Commission has updated its Energy Labeling Rule so that consumers can more accurately compare the... Read More

WASHINGTON — The Federal Trade Commission has updated its Energy Labeling Rule so that consumers can more accurately compare the estimated annual energy consumption of appliances before they buy them. The FTC’s original Energy Labeling Rule, issued in 1979 under the Energy Policy and Conservation Act,... Read More

October 5, 2022
by Kate Michael
Renewable Thermal Energy Storage Companies Bringing the Heat to Industry

WASHINGTON — Just like the ground stays toasty even after the sun sets or your cup of hot chocolate can... Read More

WASHINGTON — Just like the ground stays toasty even after the sun sets or your cup of hot chocolate can warm your cold hands, thermal energy — or energy that comes from the temperature of a heated substance — has productively been used for cooking, drying,... Read More

October 3, 2022
by Dan McCue
Youngkin Releases ‘All-of-the-Above’ State Energy Plan for Virginia

LYNCHBURG, Va. — Virginia Gov. Glenn Youngkin unveiled his “2022 Energy Plan” for the state on Monday, adopting an “all-of-the-above”... Read More

LYNCHBURG, Va. — Virginia Gov. Glenn Youngkin unveiled his “2022 Energy Plan” for the state on Monday, adopting an “all-of-the-above” approach that includes natural gas, renewable energy, hydrogen and, most notably, nuclear power to meet the state's current and future energy needs. He went on to... Read More

October 3, 2022
by Dan McCue
IKEA Home Deliveries to Be Fully Electric by 2025, CEO Says

LONDON — The CEO of the world's largest furniture retailer said on Monday that all of the company’s home deliveries... Read More

LONDON — The CEO of the world's largest furniture retailer said on Monday that all of the company’s home deliveries will be made by electric vehicles as early as 2025 as part of a drive to dramatically reduce its greenhouse gas emissions over the next eight... Read More

October 3, 2022
by Dan McCue
Solicitor General’s Input Sought on Climate Suits Against Energy Companies

WASHINGTON —The Supreme Court on Monday asked the solicitor general’s office to weigh in on a dispute over which courts... Read More

WASHINGTON —The Supreme Court on Monday asked the solicitor general’s office to weigh in on a dispute over which courts — state or federal — can hear climate litigation against fossil fuel companies. The request comes as the justices consider whether to review a 10th U.S.... Read More

September 30, 2022
by Dan McCue
Detroit-Based Firm Increases Ownership Stake in Millennium Pipeline

DETROIT — DT Midstream, an owner, operator and developer of natural gas interstate and intrastate pipelines, announced Thursday that it... Read More

DETROIT — DT Midstream, an owner, operator and developer of natural gas interstate and intrastate pipelines, announced Thursday that it is acquiring an additional 26.25% ownership interest in the Millennium Pipeline. The company said the $552 million transaction will be financed with cash on hand and... Read More

News From The Well
scroll top