US OFFSHORE WIND OFFERS EUROPE OPPORTUNITIES

Demand for offshore wind in the US is booming which is a great opportunity for European offshore manufacturers to offer up their expertise in the sector

The Business Network for Offshore Wind’s annual US Offshore Wind Market Report reveals that demand for offshore wind in the United States nearly doubled in 2022 and investments in the market tripled, marking an inflection point when the industry began its transition to commercialscale operations.

“From surging investments to cutting-edge floating turbine technology on the West Coast, passage of the landmark Inflation Reduction Act and federal regulatory efforts that bring more certainty to permitting, 2022 kicked the American offshore wind industry into full throttle,” said Liz Burdock, president and CEO of Business Network for Offshore Wind.

“A visible pipeline of projects has emerged with half a dozen projects finalizing environmental review and another 11.4 GW of new areas leased for future development.”

Ready market

One key finding of the report is that offshore wind-related contracts grew by 36% in 2022 and over the year, 664 new organisations registered with the Network’s Supply Chain Connect registry, representing a 27% increase.

Long-term state offshore wind targets increased an astounding 79% last year, as California laid down a powerful industry marker by calling for 25GW of offshore wind generation and Louisiana, New Jersey and Rhode Island also announcing new state goals.

The US offshore wind market saw US$9.8 billion in new investments in 2022, more than triple the year prior. While this growth was primarily driven by lease auction fees, over US$4.4 billion was directed to port infrastructure, supply chain development and transmission. The Network has identified US$17 billion in new investments driven by offshore wind activity in the United States since 2014.

The report also includes a forecast of what the offshore wind industry can expect in 2023.

In 2023, the American market will transition from demonstration to commercialisation with the first two commercial-scale projects, Vineyard Wind and South Fork Wind, set to begin foundation and turbine installation and producing electricity.

Meanwhile, the Inflation Reduction Act will drive alternative uses of offshore wind power and new market opportunities are emerging globally that harness offshore wind’s power output for alternative uses, including green hydrogen production, green ammonia production and carbon sequestration activities. The first major US announcement pairing green hydrogen and offshore wind occurred last year in Louisiana.

There will also be new construction on wind turbine installation vessels. With a glaring market need, federal funding available, increased confidence in the US permitting system and multiple designs with financial backing on paper, one or two more US-market wind turbine installation vessels (WTIV) concepts could begin construction this year.

Some European manufacturers are already taking advantage of this booming market in a sector in which they’re already well experienced.

Norwegian JV for Canada and North Sea

A new joint venture of two Norwegian maritime companies will focus on offshore support for Canada and the North Sea, the new firm has announced.

Bourbon Horizon AS, a JV between Bourbon Maritime and Horizon Maritime, offers a range of services with its base fleet of seven offshore support vessels, which include five Platform Supply Vessels, an Anchor Handling Tug Supply vessel and a Multipurpose Supply Vessel.

Bourbon has brought its fleet of ROVs to the deal, and the company will offer subsea and marine logistical support in offshore wind and oil and gas installations.

“Entering this strategic partnership with Horizon Maritime represents a tremendous opportunity to strengthen our current position in the North Sea markets,” said Rodolphe Bouchet, Bourbon Marine &

8 Vineyard Wind 1 is an offshore wind farm under construction in US federal waters 15 miles south of Martha’s Vineyard and Nantucket, Massachusetts

Logistics CEO. “The Bourbon Horizon AS JV will also support the consolidation of the OSV sector in harsh environments, while achieving substantial economies of scale, to allow the creation of a diversified and particularly competitive offering.”

“I’m excited to join my colleagues in this joint venture. Bourbon Horizon AS will combine our expertise in challenging offshore environments, focused on delivering modern equipment, experienced personnel, innovative solutions, and exceptional value in support of offshore oil & gas and renewable projects,” said Cliff Gaetz, Bourbon Horizon MD.