Represented by Senior Sales & Tender Manager – Søren Rønnow Poulsen, A-LEAF participated in a US roadshow last week, organized by Danish Foreign Ministry and Danish Wind Energy Association (DWEA).
The tour was aimed at the U.S. offshore wind development on the east coast, including the states of New York, Connecticut, Rhode Island and Massachusetts.
“The overall purpose was to get first-hand knowledge of the market, liaison with local stakeholders helping to pave the way forward for A-LEAF’s establishment in U.S.
As an extract it is clear, that with the latest offshore wind lease auctions, held by BOEM in February, any doubt about whether the market will materialize is eradicated. The offshore wind market in the U.S. has previously faced challenges from the surrounding world, stakeholders with other interest etc. In brief many of the similar concerns faced in other emerging markets within the offshore wind industry.
This has caused setbacks in the development of a stabile investment environment and uncertain framework conditions. Among others, there are still important questions that need to be answered. One of them, are from fishermen who naturally are concerned about the impact on the marine environment, landowners as well have shown some concerns. However, these are all concerns that the wind industry and local authorities in joint effort will handle. All states visited have very ambitious plans for the development of the industry, providing local investments, jobs and energy sources. It is therefore clear, that the support framework necessary to facilitate the local development of the industry is in very fast development. The visited states have quite ambitious plans for investing in facilities, training of workforce etc.
So, the conclusion is that investments are being made by both stakeholders in the wind industry and by the states. The latest lease auction held by BOEM towards six areas, provided investments of a total USD 4.37 billion (EUR 3,94 billion) on top of the existing project pipeline. President Joe Biden has signed an executive order catalyzing the U.S.’ clean energy transition and defining ambitious emission-reduction targets. All together founding the basis for investments and establishment of stabile framework conditions for the industry.
The latest auction showed that the industry responded very positively. Some of the so-called oil majors who previously have resisted the transition, are now frontrunners together with other established stakeholders, developing the comprehensive project-pipeline on the East Coast. A new auction is expected in late 2022 or by early 2023. So, the train is already set loose and the interest among developers to step on board and invest, is highly present. The current project-pipeline amounts to approximately 25 GW towards 2030.
The general concern raised during talks among the participants have been: “will the investment framework remain stable in case of a potential change of office in the White House, at the presidential election in 2024. “My clear impression is however, that the amount of investments already committed, projects already under development, participation from oil majors, all supported by the Biden administration and the committed transition plans, is an unstoppable train. The green transition and development of an entire new industry is a matter of fact.
It is going to happen” says Søren Rønnow Poulsen – Senior Sales & Tender Manager at A-LEAF
If you want to know more about the scopes of developing offshore wind on the U.S. East Coast, you are welcome to reach Søren at: firstname.lastname@example.org or +45 24 76 29 41