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About Commodity Insights
29 Mar 2021 | 20:38 UTC — new york
Highlights
Will conduct offshore wind lease sale
Creates pathway to 110 GW by 2050
The US Interior, Energy, Commerce, and Transportation Departments March 29 said the Biden administration will pursue a goal to deploy 30 GW of offshore wind capacity in the US by 2030.
The White House convened leaders from across the administration to announce the set of actions that will "catalyze offshore wind energy, strengthen the domestic supply chain, and create good-paying, union jobs," according to a White House fact sheet.
The offshore wind power industry will create new supply chains "that stretch into America's heartland," as shown by the "10,000 tons of domestic steel that workers in Alabama and West Virginia are supplying to a Texas shipyard where Dominion Energy is building the Nation's first Jones Act compliant wind turbine installation vessel," the statement said.
The multi-agency effort will also include The Interior Department's Bureau of Ocean Energy Management opening a new priority Wind Energy Area in the New York Bight, which is an area of shallow waters between Long Island and the New Jersey coast that a recent study shows can support up to 25,000 development and construction jobs from 2022 to 2030, as well as an additional 7,000 jobs in communities supported by this development, according to the White House.
The next step is for BOEM to publish a Proposed Sale Notice, followed by a public comment period and a lease sale in late 2021 or early 2022.
BOEM also plans to advance new lease sales and complete reviewing at least 16 Construction and Operations Plans by 2025, representing more than 19 GW of offshore wind capacity.
The administration intends to use offshore wind development growth to spur economic activity.
Specifically, meeting the 30 GW goal will lead to building one to two US factories for each major windfarm component including wind turbine nacelles, blades, towers, foundations, and subsea cables, along with additional cumulative demand of more than 7 million tons of steel and construction of four to six specialized turbine installation vessels in US shipyards, the White House said.
Achieving the 30 GW by 2030 target will also "unlock a pathway to 110 GW by 2050," the statement said.
There are currently about 24 GW of offshore wind projects in the works along the US East Coast.
BOEM also announced a Notice of Intent to prepare an Environmental Impact Statement for the 1.1-GW Ocean Wind project being developed by Denmark's Ørsted off the coast of New Jersey, putting it in line to become the country's third commercial-scale offshore wind project, according to the statement.
BOEM had previously announced environmental reviews for Vineyard Wind offshore Massachusetts and South Fork Wind which will connect to shore on New York's Long Island. BOEM anticipates initiating environmental reviews for up to 10 additional projects later this year, the White House said.
Additionally, the DOE's Loan Programs Office is facilitating access for the offshore wind industry for $3 billion in funding through the office's Title XVII Innovative Energy Loan Guarantee Program.
The National Offshore Wind Research and Development Consortium that was created by the DOE and the New York State Energy Research and Development Authority said it awarded $8 million to 15 offshore wind research and development projects that were selected through a competitive process.
The projects will focus on offshore support structure innovation, supply chain development, electrical systems innovation, and ocean use conflict mitigation, the statement said.
"This offshore wind goal is proof of our commitment to using American ingenuity and might to invest in our nation, advance our own energy security, and combat the climate crisis," Jennifer Granholm, Secretary of Energy, said.
"DOE is going to marshal every resource we have to get as many American companies, using as many sheets of American steel, employing as many American workers as possible in offshore wind energy—driving economic growth from coast to coast," Granholm said.