Wind Energy – USA
Siemens Gamesa has cancelled plans to build blades for offshore wind turbines in coastal Virginia, the latest sign of struggle within the U.S.’s nascent industry.
Siemens Gamesa confirmed the cancellation in a statement Friday. The company’s proposed $200 million factory at the Port of Virginia in Portsmouth would have created more than 300 jobs and aided the state in its aspirations to become a hub for offshore wind projects as part of the nation’s efforts to tackle climate change.
The nixed plans, however, will not impact the construction of Dominion Energy’s enormous wind farm off the coast of Virginia Beach. Those turbines will come from Siemens Gamesa facilities in Europe.
The change in plans by the Spain-based firm comes at a time when inflation, raised interest rates and supply chain issues have cut into the profitability — and even the viability — of some offshore wind projects in the U.S.
For example, Danish energy developer Orsted recently scrapped two large offshore wind power projects off the coast of New Jersey, citing supply chain issues and rising interest rates.
A handful of other projects have been cancelled. They include the Park City Wind project off the coast of Massachusetts. Avangrid, a subsidiary of Spanish utility company Iberdrola, and several Connecticut utilities scrapped a long-term power purchase agreement.