The Challenges Facing Offshore Wind: Supply Chain Issues, Ship Availability and Interest Rate Concerns

A few years back, interest in offshore wind energy was so high that developers suggested spending billions to plant hundreds of turbines the size of skyscrapers in the Atlantic Ocean from Maine to Virginia. However, some projects recently hit setbacks due to the impact of the pandemic and rising interest rates on supply chains. As a result, the offshore wind industry found manufacturing, transportation, and erection of turbines more challenging than expected. Instead of the hundreds of turbines proposed, only a few dozen have been installed in U.S. waters.

The cost of offshore wind energy will be higher than anticipated, and its climate and economic benefits may be delayed. Some wind farms may be delayed or never built. As a result, Eastern states have awarded contracts to build roughly two dozen offshore wind farms, but many developers have canceled or asked to renegotiate rates for almost half of that capacity. Analysts are now predicting about 15 gigawatts of offshore wind will be installed by 2030, which is lower than expectations.

Orsted, a Danish company that has built around two dozen offshore wind farms, has canceled some planned giant offshore wind arrays in the U.S. due to anticipated large write-offs. Similarly, BP recently wrote off a significant amount of its investment in the U.S. offshore wind market. States like New York and Massachusetts are acknowledging that they will need to pay higher prices for the electricity generated by offshore turbines than they had anticipated.

Despite these setbacks, President Biden’s administration plans to complete federal reviews for at least 16 offshore wind farms by 2025. Some executives in the offshore wind industry are hopeful that the investments currently being made will pay off in the coming years. However, the industry is currently facing a significant challenge due to the lack of a robust domestic supply chain for offshore wind projects.

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Unlikely Industry Player Anguilla Profits Big from A.I. Boom

Artificial intelligence’s integration into everyday life has stirred up doubts and unsettling questions for many about humanity’s path forward. But in Anguilla, a tiny Caribbean island to the east of Puerto Rico, the A.I. boom has made the country a fortune. The British territory collects a fee from every registration for internet addresses that end […]

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China Surpasses U.S. in A.I. Talent: A Key Metric

China lags behind the United States in artificial intelligence that powers chatbots like ChatGPT but excels in producing scientists behind new humanoid technologies. New research reveals that China has surpassed the United States as the biggest producer of A.I. talent. The country generates almost half the world’s top A.I. researchers, compared to 18 percent from […]

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Brands Brace for Impact as TikTok Faces Criticism

Amid debate in Washington over whether TikTok should be banned if its Chinese owner doesn’t sell it, one group is watching with particular interest: the many brands — particularly in the beauty, skin care, fashion, and health and wellness industries — that have used the video app to boost their sales. Youthforia, a makeup brand […]

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