The American Clean Power Association (ACP) has released a report on the U.S. offshore wind market, revealing a growing pipeline of projects across 32 leases totalling 51,377 MW of expected capacity.
Additionally, offshore wind project development, construction and operations are expected to support up to 83,000 American jobs by 2030, with industry investment set to deliver up to $25 billion per year in economic output.
The new report emphasises the economic impact of offshore wind on domestic shipbuilding, with more than 30 new vessels currently on order or under construction to support the industry. The domestic supply chain for offshore wind is also set for growth, with fourteen facilities announced or under construction. Investment announcements for offshore wind components exceed $1.7 billion.
Key Takeaways from the Report:
U.S. Offshore Wind Pipeline:
- 42 MW currently online, 51,377 MW in development pipeline across 32 leases.
- East Coast dominates with 84% of the pipeline, accounting for 43,115 MW.
- Early development projects represent 33,875 MW, while advanced development projects account for 16,564 MW.
Leading States:
- Ten states have combined offshore wind procurement targets of over 81,000 MW.
- New York leads with 4,362 MW of capacity in the pipeline, followed by New Jersey with 3,758 MW.
- Revenue: 2022 BOEM lease sales generated nearly $5.4 billion in federal revenue.
- Prices were highest in the February 2022 New York Bight auction, averaging $8,313/acre, and lower in Carolina Long Bay and California.
Manufacturing:
- Offshore wind is driving domestic shipbuilding and a growing domestic supply chain, with over 30 vessels on order or under construction.
Headwinds:
- Project costs are increasing due to supply chain disruptions, commodity price increases, and inflation, with steel prices as a notable concern.
- Lengthy permitting and regulatory timelines exacerbate these issues.
