From dead whales to nimbys: seven big headaches for American offshore wind

In its breakout year with first commercial steel just installed at the nation’s flagship projects, there should be plenty for US offshore wind to celebrate. With a goal of 30GW by 2030 set by President Joe Biden, offshore wind has enjoyed broad support across the political spectrum for its ability to drive large-scale investment and jobs growth while reducing emissions. Governors from the Northeast to the Gulf of Mexico and California, regardless of political stripe, have climbed on board, generating a pipeline of state demand that exceeds 80GW by 2040. But as the ambition has grown, so have the headaches. Here are seven of the biggest. Fisheries conflicts The US’ most lucrative fisheries lie off the coasts of Massachusetts and the northeast has seen a series of challenges from that industry. Opposing voices from the West Coast have been loudest of late, however, with Oregon fisheries organisations including the federal Pacific Fisheries Management Council calling for a revamp of offshore wind call areas established in 2022, which could set the sector back years. Testifying to the strength of the fisheries in this largely rural state of four million, the effort has gained the support of the governor Tina Kotek, who has backed calls for a pause in floating wind activities. Dead Whales Since December last year nearly two dozen whales have washed up on Atlantic beaches most of them humpbacks but others as well, including two critically endangered North Atlantic right whales. While the deaths were part of an ongoing unusual mortality event (UME) for both humpbacks and right whales, critics were quick to blame offshore wind survey activities. Industry and government have rallied in defence, noting that the UMEs date to 2016, predating large scale offshore wind activities. Still the whales keep dying, with two more meeting their end in mid-June off Martha’s Vineyard. Soaring costs A recent report by research consultancy Westwood Global Energy Group found that inflation has spiked sector costs by some 20% in the last two years, resulting in projects in the US being delayed and even withdrawn and power offtake contracts renegotiated. Developers are seeking to withdraw nearly all Massachusetts capacity – 2.4GW of the state’s 3.2GW total – that set record low prices two and a half years ago but is now deemed “unviable”. New Jersey’s flagship project, Orsted’s Ocean Wind 1, meanwhile, needed a new law to rescue it. A bill allowing Danish renewables giant Orsted to retain full federal investment tax credits (ITC) under the Inflation Reduction Act squeaked through the state’s legislature 3 July and will now go for the signature of governor Phil Murphy. Foreign sell-off claims New Jersey senator Edward Durr said after the vote that kept Ocean Wind 1 on the road (see above) that “Senate & Assembly Democrats voted to give over up to $1bn [his figure] to foreign corporation Orsted, which will result in higher rates for taxpayers”. Durr’s comment echoes a common refrain from offshore wind’s opponents that too many European firms will benefit from American largesse as the industry takes advantage of tax credits and other incentives to help it ramp up. US environmental activists also claim that oil & gas money is being used to fund misinformation especially around allegations linking offshore wind to whale strandings. Conservative think tanks such as Caesar Rodney Institute and the Texas Public Policy Foundation are funded by the likes of ExxonMobil and Chevron, and openly support “local” groups opposed to the industry. That’s ironic, since global oil majors including BP, Equinor and Shell are among the leading US offshore wind players. Tribal issues The Biden administration has prioritised job growth and economic opportunity for US indigenous Tribes, but several Tribal associations have questioned these efforts. The US’ oldest association of American Indian and Native Alaskan tribes, the National Congress of American Indians (NCAI) in a resolution called on seabed landlord BOEM to “halt all scoping and permitting for offshore wind projects until completion of a comprehensive and transparent procedure adequately protecting tribal environmental and sovereign interests is developed and implemented.” Nimbyism Coastal communities adjacent to largescale offshore wind development are concerned about viewscapes and the impact of offshore wind on beachside tourism. Social media is replete with nightmarish images of hordes of wind turbines looming over beaches purportedly taken from construction and operations plans of projects currently under permitting review by the federal government, galvanising opposition. Local opposition has further been weaponised by conservative groups bent on derailing the successful deployment of the industry and spurred on by publicity firms. Infrastructure shortfalls Transmission infrastructure, factories, port facilities, vessels – all of these are in short supply, and as the industry ramps, the US will need to make multiple, costly investments. Half the US offshore wind project pipeline is at risk of being delayed beyond the 2030 target because of lack of industrial port and vessel, according to the National Renewable Energy Laboratory (NREL). The future of the burgeoning US offshore wind sector hinges on investment of $23bn into coastal and port manufacturing infrastructure, wind turbine installation vessels (WTIV) and other specialised ships, NREL noted. The industry needs a supply chain capable of delivering 2,100 turbines, 6,800 miles (10,944 km) of cable, numerous vessels, and tens of thousands of qualified workers through to the end of the decade. Whether this can be financed, and even more problematically, permitted in the necessary time frame remains to be seen.