Oceantic Network's Quarterly Market Report for Q1 2024 details new supply chain investments, new vessel launches, and expansion of the U.S. pipeline to 10 GW ready for installation
The U.S. offshore wind market transitioned from planning to commercialization in the first quarter of 2024. In total, the amount approved for construction in the U.S. surpassed 10 GW during the first quarter of 2024. These and other key industry findings are detailed in Oceantic Network's U.S. Offshore Wind Quarterly Market Report, which highlights announced investments, advancements of the review process for several projects, and notable policy developments that drove the U.S. market forward between January and March of 2024.
Notable milestones include Ørsted and Eversource's completion of South Fork Wind project in March. Next up is Vineyard Wind, to be completed later this year, which also began delivering power to the grid. Meanwhile, two new projects, collectively triple the size of South Fork and Vineyard, were announced to begin installation this summer.
"In the first quarter, our industry moved from concept to reality with projects now delivering power to the grid," said Sam Salustro, vice president of strategic communications at Oceantic Network. "No longer will the question be whether the U.S. builds offshore wind projects, but how many and how fast. This summer we'll see the market move into a new region with the start of Dominion Energy's Coastal Virginia Offshore Wind in the mid-Atlantic, and a third project in the Northeast with Revolution Wind."
Further market strength was showcased in the first quarter with the ninth CTV launch, and fourth this year, for the U.S. market and a new $700 million investment in a steel tower facility. These announcements along with new tax guidance will enable the Inflation Reduction Act to benefit even more projects.
Added Salustro, "We will continue to hit speed bumps, like New York's announcement last week regarding recently awarded projects, but we are still seeing the market build momentum. The wind is at our backs, now we must continue our work to build a supply chain for offshore wind."
The first quarter of 2024 signaled a new era for the industry with American homes being powered by offshore wind energy. The report identified several further advancements, including:
- The Bureau of Ocean Energy Management (BOEM) increased the total capacity approved for construction by over 30% as the U.S. more than quintupled its installed offshore wind capacity - from 42 MW to 242 MW.
- U.S. Forged Rings announced a new $700 million tower and forge facility to be located on the East Coast, an investment made purely based on the strength of the U.S. market.
- Another 4,000 MW of projects are expected to begin installation activities this summer.
- New IRS tax guidance will drive down costs for a range of offshore wind activities across the East Coast.
- Four new crew transfer vessels, the workhorse of the offshore wind industry, have launched in just the past three months.
- New offtake awards contain provisions supporting supply chain investments throughout the East Coast.
The Q1 2024 Market Report is available online. For more information, or to arrange an interview with the Network, contact Luke Jeanfreau at luke.jeanfreau@oceantic.org or 504-302-8079.
As a non-profit organization, the Oceantic Network's driving purpose is to inform, coordinate, and mobilize human ingenuity, enterprise, and labor to take advantage of the urgent need to tap the vast offshore wind and renewable energy resources that lie in the world's oceans. The collective, coordinated efforts of our 600+ members equip communities and nations to accelerate the transition to clean energy and create economic opportunities.
Media Contact: Luke Jeanfreau | luke.jeanfreau@oceantic.org | 504-302-8079
