The Business Network for Offshore Wind releases its U.S. Offshore Wind Quarterly Market Report in April, July, October, and January. Each builds off our U.S. Offshore Wind Annual Market Report and provides key analysis of both federal and state government activities impacting the U.S. offshore wind industry. Quarterly Reports ensure companies are informed on offshore wind industry developments affecting their business.
The second three months of 2023 (Q2) are notable for the achievement of “steel in the water” on the nation’s first two commercial-scale projects and several firsts for the U.S. supply chain, but continued cost increases have caused challenges for developers that are likely to lead to some project delays.
The report details important developments that affected the U.S. offshore wind industry in the second quarter of 2023, including:
- The many recent firsts for the U.S. supply chain, including the first U.S.-built offshore wind substation and monopiles, along with the first cables manufactured for a U.S. commercial-scale project.
- New investments in steel manufacturing facilities in Ohio and Baltimore and a California port’s ambitious $4.7 billion plan for a major floating offshore wind facility.
- Economic headwinds that have forced projects in Massachusetts and New York to adjust their state financial agreements, and led to new legislation passed in New Jersey aimed at supporting one of its projects.
- New offshore wind markets — adding to the existing 84 GW demand — in Delaware, Illinois and Maine, which have all considered or advanced new procurement legislation, and Louisiana, which is negotiating with developers to advance projects in state waters.
Mid-Year Supply Chain Snapshot:
The first two U.S. commercial-scale projects saw steel in the water in June. On the heels of these important offshore wind milestones, the Network takes a look into the current state of the U.S. supply chain and its rapid growth over the past few years.
The Mid-Year Supply Chain Snapshot provides an overview of data found in the Network’s U.S. Offshore Wind Market Dashboard, which provides a comprehensive report on all U.S. projects from contracts, legislation, and specifications, with contractor details, offshore wind training classes, ports and vessels information, and more.
At the heart of the emerging U.S. supply chain is 18 major manufacturing facilities, ten shipyards with offshore wind vessel orders, and 29 ports under development to support the industry. With project installation at Vineyard and South Fork Wind, the U.S. supply chain will have provided the first U.S.-manufactured offshore substation (made in Texas), the first U.S.-manufactured export cables (made in South Carolina), and the first run of critical steel foundation and tower components (made in Rhode Island). The Mid-Year Supply Chain Snapshot also details the growth in the U.S. market that has occurred in the past two years thanks to expanding state demand for and support of offshore wind, and federal government policies to bring certainty to the permitting process and inject crucial investments in research, infrastructure, and green energy development. Key takeaways include from this 2023 report include:
- A 272% increase in the number of U.S. market supplier contracts since 2021, according to the Network’s Market Dashboard, with 47% of that growth occurring since the IRA was signed in August 2022.
- 90% of contracts in the U.S. market going to companies that are either headquartered or have a presence in the U.S.
- A 169% increase in companies that have registered in the Network’s free offshore wind supply chain database since 2021, with a 54% increase since the IRA was signed.
- $16.6 billion in new market investments made since 2021 — more than quadruple the amount invested previously — with $7.7 billion of those investments made after the IRA was signed.
- A 100% increase in the number of vessels under construction or being retrofit in U.S. shipyards since 2021.
For weekly U.S. offshore wind updates, subscribe to our Offshore Wind Insider newsletter.