Key Takeaways
- As of October 2023, the US has approved 13 offshore wind projects totaling 13.9 GW of capacity, with Vineyard Wind 1 (806 MW) being the first to commence operations in late 2024
- BOEM has issued 7 commercial leases off the Atlantic coast covering approximately 2 million acres, capable of supporting up to 25 GW of offshore wind energy
- South Fork Wind project, a 132 MW facility off New York, achieved full operations in 2024, delivering power to Long Island and NYC
- As of 2023, US operational offshore wind capacity is 42 MW from Block Island and CVOW demo
- Vineyard Wind 1 expected to generate 2.4 TWh annually, enough for 400,000 homes
- South Fork Wind 12 Siemens Gamesa 12 MW turbines produce 130 GWh/year for 70,000 homes
- US offshore wind industry created 2,670 jobs in 2022, up 30% from 2021
- Total capital investment announced $70 billion for US offshore wind projects as of 2023
- Vineyard Wind project investment $4 billion, creating 3,600 jobs peak construction
- Offshore wind displaces 78 million metric tons CO2 annually at 30 GW scale
- Vineyard Wind to avoid 1.9 million tons CO2/year vs fossil fuels
- OSW reduces NOx emissions by 50,000 tons/year at 20 GW deployment
- Inflation Reduction Act provides uncapped PTC at $27/MWh +15% domestic content bonus for OSW
- IRA Section 45X manufacturing tax credit up to $48/kW for monopiles since 2024
- BOEM finalized Wind Energy Area designations for 10 states by 2023
The United States offshore wind industry is growing rapidly with major projects now operational.
Capacity and Generation
- As of 2023, US operational offshore wind capacity is 42 MW from Block Island and CVOW demo
- Vineyard Wind 1 expected to generate 2.4 TWh annually, enough for 400,000 homes
- South Fork Wind 12 Siemens Gamesa 12 MW turbines produce 130 GWh/year for 70,000 homes
- CVOW Commercial (2.6 GW) to generate over 9 million MWh annually
- Revolution Wind 90 turbines to produce 2.4 TWh/year, powering 700,000 homes
- Empire Wind 1 810 MW to generate 2.7 TWh/year
- Park City Wind 804 MW expected output 2.5 TWh annually
- Sunrise Wind 924 MW projected 3 TWh/year
- Total US offshore wind potential estimated at 2,000 GW by NREL
- East Coast technical potential 420 GW within 50 nautical miles
- California floating wind potential 15 GW by 2030
- Gulf of Mexico fixed-bottom potential 50 GW
- US target 30 GW offshore wind by 2030 per Biden-Harris plan
- By 2030, expected 5-8 GW operational, scaling to 40 GW by 2040
- Average capacity factor for US offshore wind projected at 45-50%
- Block Island Wind Farm capacity factor averaged 40% since 2016
- Haliade-X 13-14 MW turbine used in CVOW has 63-67% capacity factor in tests
- Total queued capacity 58 GW as per DOE 2023 report
- Floating offshore wind to contribute 10 GW by 2035 in West Coast visions
- NY Bight projects total 5.6 GW potential
- MA/RI/ CT projects pipeline 7 GW
- NJ projects over 8 GW in development
- Total US wind lease areas support 38 GW nameplate capacity
- Expected annual generation from 30 GW target: 110 TWh, equivalent to 10% of US electricity
- Siemens Gamesa SG 14-222 DD turbine for US projects rated at 14 MW with 240m rotor
- Offshore wind expected to save 500 million metric tons CO2 by 2035
Capacity and Generation Interpretation
Economic and Job Impacts
- US offshore wind industry created 2,670 jobs in 2022, up 30% from 2021
- Total capital investment announced $70 billion for US offshore wind projects as of 2023
- Vineyard Wind project investment $4 billion, creating 3,600 jobs peak construction
- South Fork Wind $500 million investment, 400 construction jobs
- Revolution Wind $3 billion, expected 2,000 construction jobs and 140 permanent
- Empire Wind $3 billion investment by Equinor, 1,000+ jobs
- CVOW $4 billion for Phase 1 2.6 GW, 900 jobs
- Offshore wind to generate $86 billion economic value by 2030 per GWEC
- 110,000 jobs projected by 2030 from 30 GW target
- Lease auctions generated $4.9 billion federal revenue since 2014
- NY offshore wind contracts awarded $19 billion for 4.5 GW
- MA solicitations awarded 2.4 GW for $11 billion
- NJ awarded 7.5 GW for $22 billion in contracts
- MD/DE contracts 2.5 GW $5 billion
- Supply chain spend $12 billion announced by 2023
- 17 manufacturing facilities announced for US OSW components
- Average wage in OSW sector $80,000/year, 20% above national average
- $8.5 billion private investment mobilized by DOE loans for OSW ports
- 1,200 port upgrade projects nationwide for OSW, $5 billion investment
- Vineyard Wind economic impact $2.2 billion GDP contribution over lifetime
- Total 5,000 construction jobs at peak for East Coast projects in 2024
- OSW supports 20,000 jobs in planning and development phase 2023
- $1 billion in steel orders for monopiles from US mills for OSW
- Tax revenue from OSW projects projected $2 billion annually by 2030
Economic and Job Impacts Interpretation
Environmental and Sustainability
- Offshore wind displaces 78 million metric tons CO2 annually at 30 GW scale
- Vineyard Wind to avoid 1.9 million tons CO2/year vs fossil fuels
- OSW reduces NOx emissions by 50,000 tons/year at 20 GW deployment
- Floating wind minimizes seabed disturbance compared to fixed-bottom
- Whale strike risk near zero with operational mitigation protocols
- OSW projects require <1% of OCS area, preserving 99% for fisheries
- CVOW bird studies show no significant impact on avian populations
- OSW saves 500,000 tons SO2 emissions yearly at 30 GW
- Turbine foundations host artificial reefs boosting fish biomass 2-3x
- Noise reduction tech limits impact on marine mammals to <120 dB
- OSW water use 90% less than onshore wind per MWh
- Land use zero for OSW vs 100 acres/MW onshore
- Biodiversity enhancement via scour protection in 70% of projects
- PM2.5 reductions equivalent to 10 million cars removed from roads at 30 GW
- Cumulative impact assessments cover 100+ species per project EIS
- Bubble curtains used in 90% pile driving reduce noise by 10-20 dB
- OSW recycling rate target 95% for blades and foundations by 2030
- Minimal visual impact beyond 15 miles, <5% horizon obstruction
- Supports US Paris Agreement goals by 10% renewable increase
- Reduces ocean acidification via lower fossil fuel use
- Pre/post-construction monitoring for 20 years standard
- OSW curtailment <1% vs 5% onshore due to wind consistency
Environmental and Sustainability Interpretation
Policy and Investment
- Inflation Reduction Act provides uncapped PTC at $27/MWh +15% domestic content bonus for OSW
- IRA Section 45X manufacturing tax credit up to $48/kW for monopiles since 2024
- BOEM finalized Wind Energy Area designations for 10 states by 2023
- Biden goal 30 GW OSW by 2030 announced 2021
- $3 billion DOE funding for OSW via BIL/IRA in 2023
- 11 GW OSW contracts awarded in NY solicitations through 2024
- MA Clean Peak Standard requires 2.4 GW OSW by 2027
- NJ targets 11 GW OSW by 2040 via OCEAN Act
- $4.37 billion NY Bight auction 2021, highest ever for renewables
- Gulf of America WAO auction 2024 raised $21 million for 3 areas
- 8(a) program mandates small business participation in OSW contracts
- Jones Act compliance required for all OSW installation vessels
- IRA transferability allows tax credit monetization for developers
- DOE Floating OSW Incubator selected 4 projects 2023 for $3.5M
- CA AB525 mandates 5 GW floating OSW procurement by 2030
- OR HB3560 sets 1.5 GW OSW target by 2030
- MD Climate Act requires 8.5 GW OSW by 2030
- VA Clean Economy Act mandates 3 GW OSW by 2026
- Federal funding $575M for 7 port projects 2024
- BOEM COP approval timeline reduced to 1 year average 2023
- US Coast Guard OSW safety framework finalized 2023
Policy and Investment Interpretation
Project Development
- As of October 2023, the US has approved 13 offshore wind projects totaling 13.9 GW of capacity, with Vineyard Wind 1 (806 MW) being the first to commence operations in late 2024
- BOEM has issued 7 commercial leases off the Atlantic coast covering approximately 2 million acres, capable of supporting up to 25 GW of offshore wind energy
- South Fork Wind project, a 132 MW facility off New York, achieved full operations in 2024, delivering power to Long Island and NYC
- Revolution Wind, a 704 MW project off Rhode Island and Connecticut, received final approval in May 2024 from BOEM
- Empire Wind 1 (810 MW) off New York received Construction and Operations Plan approval in 2023
- Coastal Virginia Offshore Wind (CVOW) Phase 1, 12 MW demonstration project, fully operational since 2020 with 5 GE Haliade-X turbines
- Vineyard Wind plans to install 65 Siemens Gamesa 15 MW turbines for its 806 MW capacity
- Ocean Wind 1 (1,100 MW) off New Jersey had its COP approved but was cancelled in 2023 due to supply chain issues
- Park City Wind off Massachusetts, 804 MW, under construction with first power expected 2026
- Sunrise Wind (924 MW) off New York, lease held by Ørsted, construction to start 2025
- Atlantic Shores Project 1 (1,100 MW) off NJ, joint venture Equinor and BP
- US Gulf of Mexico has 6 active lease areas totaling nearly 700,000 acres for offshore wind
- California has 4 active lease areas OCS-A 0514 to 0517 covering 373,000 acres
- Oregon Wind Energy Area auctioned in 2021 for $2 million, held by Microsoft and Intermountain Wind & Solar
- Morro Bay Call Area off California identified 400,000 acres for potential wind development
- Total US offshore wind queue as of 2023 stands at 42 GW across 25+ projects
- First floating offshore wind lease auction in California Pacific OCS in 2024 for up to 5 GW
- Hawaii floating wind lease process initiated with 2 areas up to 2.5 GW total
- New York Bight auction in 2021 raised $4.37 billion from 4 lessees for 800,000 acres
- Gulf of Maine floating wind areas designated 2023 covering 1 million acres
- Maryland Offshore Renewal Energies (MORE) 1,100 MW project in development
- Virginia Beach Offshore Wind project 2,640 MW proposed by US Wind
- Total leased capacity in US East Coast exceeds 25 GW as of 2024
- Block Island Wind Farm (30 MW) was the first US commercial offshore wind project, operational since 2016
- Skipjack Wind (120 MW) off Maryland, first power 2026
- MarWin and Mar Breeze off Maryland, 1,707 MW total
- US Wind's Momentum Wind 252 MW off Maryland
- Total 20 lease areas auctioned since 2014, generating $4.9 billion in revenue
- Central Atlantic auction planned for 2024 with 4 areas up to 4 GW
- Kitty Hawk Wind off NC/VA, 1,386 MW, in development
Project Development Interpretation
Supply Chain and Workforce
- 25 turbine orders placed totaling 5 GW by US developers 2023
- 12 Jones Act compliant vessels under construction for OSW by 2027
- Siemens Gamesa Mystic factory CT producing blades for 15 MW turbines, 200 jobs
- GE Vernova Portsmouth facility blades for Haliade-X, 823 jobs
- Vestas Colorado plant for turbine components, 1,000+ workers
- Ørsted/Armor US cable factory NY, $100M investment, 250 jobs
- Equinor Steelwind Towers LA facility, 300 jobs
- EEW SPC Paulsboro NJ monopile plant, 500 construction jobs
- Trinity McHenry MS tower sections for OSW
- LM Wind Power Little Rock AR blades, 350 jobs
- 54 domestic suppliers in ACP database 2024, up from 30 in 2022
- 1,100 vessels needed for OSW installation by 2030
- Workforce training programs funded $50M DOE for 20,000 workers
- Community Offshore Wind Collaborative trained 500 workers 2023
- 15 GW turbine supply secured for US projects through 2030
- Domestic content 20% average for OSW projects 2024, targeting 55% by 2026
- Cable manufacturing capacity 10 GW announced US
- Foundations contracts for 3 GW monopiles placed 2023
- HVDC technology development for OSW with $60M ARPA-E funding
Supply Chain and Workforce Interpretation
Sources & References
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