The offshore wind industry begins an exciting chapter with the inauguration of President Joseph R. Biden, whose commitment to renewable energy development will lead to dramatic industry growth in the United States.
Already, President Biden’s Cabinet and senior staff appointments reflect his dedication to tackling climate change and developing America’s renewable energy industry.
With recent federal legislative action creating a valuable new 30 percent tax credit specifically for the industry, offshore wind developers and businesses will confidently invest billions of dollars into the U.S. supply chain, creating tens of thousands of good-paying jobs while delivering clean, renewable energy to millions of households.
“This is the opportunity the offshore wind industry has waited for,” said Liz Burdock, CEO of the Business Network for Offshore Wind. “President Biden’s unwavering commitment to develop renewable energies will usher in a new era for the offshore wind industry and for the U.S. supply chain. We are excited to work with the Biden administration to build the next great American industry that will inject at least $166 billion dollars into the future U.S. economy.”
The U.S. offshore wind industry is already primed for growth thanks to state governments pushing development forward with bold commitments, like New York’s recent announcement of the largest offshore wind capacity procurement in U.S. history, nearly 2.5 GWs.
A federal government matching the leadership shown in states will finally unleash the offshore wind industry, driving the development of a larger, more competitive domestic market as well as opening up export opportunities for American companies.
The next four years will see at least 10 GW of generation entering construction, new vessel orders including state-of-the-art wind turbine installation vessels, and billions of dollars in port infrastructure improvements.
“At the Business Network, we track the U.S. supply chain through our proprietary Offshore Wind Market Dashboard and Supply Chain Connect, and with the support of the Biden Administration we are confident the industry will easily triple the 419 currently known subcontracts creating thousands of jobs within the next four years,” added Liz Burdock, CEO of the Business Network for Offshore Wind.
To maximize the potential of offshore wind, the federal government must take action to alleviate the hurdles that are currently impacting business confidence and investment.
This past week, offshore wind leaders met at the Business Network’s Leadership 100 summit to discuss industry priorities and opportunities under the Biden administration. Summit attendees agreed the most pressing issue curtailing industry confidence is the federal government’s uncertain leasing and permitting processes. East Coast states have already committed to procure 30 GW of offshore wind generation capacity, more than can be developed in current existing federal offshore leases.
More than a dozen offshore wind projects, totalling 11.6 GW of capacity, have already secured financial offtake and are ready for construction once they receive federal permitting approval.
By auctioning new lease areas, advancing current projects awaiting federal approval, and streamlining the federal permitting process, the Biden Administration can ensure substantial private sector investment and consistent growth within the U.S. supply chain.