Jan 21 (Reuters) - U.S. President Donald Trump suspended new federal offshore wind leasing on Monday, his first day back in the Oval Office, pending an environmental and economic review.
Shares in Danish energy company Orsted , the world's biggest offshore wind firm, plunged on Tuesday after the company posted another impairment charge on delays to a U.S. offshore project.
Those are just the latest blows for the offshore wind industry that former President Joe Biden and several states considered key to meeting federal and state clean energy targets.
"The chances of any new offshore wind developments in the U.S. are zero for now," analysts at energy consultancy Rystad Energy said after Trump suspended new offshore wind permitting. Rystad, however, projected that projects already under construction would go forward.
In 2023 and 2024, several offshore wind companies took billions in write-offs, impairments and other cancellation fees after they determined they could no longer complete projects profitably due to rocketing construction costs, higher interest rates and supply chain snags.
There are currently four offshore wind projects in service in the U.S. However, one - Vineyard Wind 1 - was shut for part of 2024 after a blade fractured and fell into the ocean in July.
There are also four offshore wind projects under construction and a few more in advanced development.
Several New England and Mid-Atlantic states have said they plan additional solicitations for offshore wind over the next year. It is unclear whether the Trump review will affect those solicitations.
The following factbox lists the projects in service and those under construction and in advanced development that were expected to continue despite Trump's review:
In Service State(s) Company Start First Power Size
Construction (MW)
Block Island RI Orsted 2016 29
Coastal Virginia Offshore Wind Pilot VA Dominion 2020 12
South Fork RI, MA Orsted (50%)/Global Infrastructure Partners (GIP) Skyborn Renewables unit (50%) Feb 2022 Dec 2023 132
Vineyard Wind 1 MA Iberdrola/Copenhagen Infrastructure Partners Nov 2021 Jan 2024 806
Under Construction State(s) Company Start First Power Size
Construction (Estimated) (MW)
(Estimated)
Revolution Wind RI, MA Orsted (50%)/Global Infrastructure Partners (GIP) Skyborn Renewables unit (50%) 2023 ~2026 704
Coastal Virginia Offshore Wind (Commercial) VA Dominion (50%)/Stonepeak (50%) Nov 2023 ~2026 2,587
Empire Wind 1 NY Equinor May 2024 2027*** 810
Sunrise Wind RI, MA Orsted Jul 2024 ~2026 924
Under Development State(s) Company Start First Power Size
Construction (Estimated) (MW)
(Estimated)
New England Wind 1 MA Iberdrola ~2025 ~2029 791
SouthCoast Wind 1 MA Ocean Winds (EDP Renewables/Engie) ~late 2025 ~2030 1,287
Community Offshore Wind 1 NY, NJ RWE/National Grid ~2027 ~2030 1,314
*** Empire Wind 1 - 2027 is estimated time of commercial power instead of first power
(Reporting by Scott DiSavino Editing by Marguerita Choy)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
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