Offshore Wind USA – it’s finally happening!

In the May 2010 Hannah Abend left the United States seeking new career adventures in Europe. At that time, the offshore renewables industry in the US was spluttering due to a lack of political and financial support. Opportunities for an offshore wind scientist were limited. By contrast, in Europe projects were flourishing, offering new and exciting engineering challenges.

A few weeks ago, Hannah returned to the US to visit IPF as Wood Thilsted’s Chief Operating Officer. Here she offers us some insight into why a decade later it all feels very different and that now really is offshore wind’s moment, not just in the USA but globally.

So was this the first time you went to IPF Hannah?

Yes, this kind of industry representation didn’t exist when I was working in offshore renewables in the US in the 2000’s. It’s amazing to see so many faces old and new getting together with so much energy and positivity for the future. It really feels that, after a few false starts, the industry is about to spring out the blocks at full pelt. Happily, there are a few runners down the track already.

What was particularly exciting for you?

It has to be two things. One, political support and two, representation of the supply chain.

So tell us about political support?

It’s really the combination of federal and state support but more importantly the bipartisan support that feels particularly new. It’s what makes me so certain that this time it’s real. This has been such a contentious issue that tended to go along party lines and that has moved on now.

States are seeing the opportunity not just for developing clean energy, but that this is an industry that can bring more jobs and economic benefits to their State. Simply put, develop a supply chain and developers will want to come and invest there. This has the east coast States checking out what each one is doing. A bit of healthy competition can only be a good thing to drive the industry forward and this all came across very clearly from State and federal level speakers at IPF.

And tell us about the supply chain.

We all know that this is one of the key challenges, not just for the USA, but for any new offshore wind market. At IPF there were many representatives of the national and global supply chain, and US based organisations who are clearly seeing the opportunity to get into and develop the supply chain. Ports, fabrication, vessels, survey companies, and much more was represented. People see the market is about to boom so they are asking questions and working to get in from the ground up. One big question which both business and government currently seems to see as an opportunity rather than a problem is how we domestically fabricate structures of this kind of scale when it hasn’t been done for quite a while. Another is how to we transport both foundations and turbines to sites, when the port infrastructure isn’t ready for this scale of operation.

How does what is happening in the US relate to the rest of the world?

My view is it can only be positive. It’s important for major economies to not only be tackling their carbon emissions but demonstrating how, in doing so, offshore wind can deliver jobs, community and economic benefits. The USA has fallen significantly behind Europe, particularly the UK, as well as China and other Asian countries like Taiwan. By stepping up and accelerating development in this area not only does it benefit the USA but it sets a benchmark for other major economies.

Were there any surprises?

I guess it was probably the reaction to Wood Thilsted itself. Our roots in the European markets combined with our experience of working on Vineyard Wind, from pretty much its inception, combined with our technology and globally experienced team puts us in a position as a very established part of the growing US offshore wind industry. I guess it’s easy to forget that when an industry is still nascent you can be playing such a major part in its growth and success.

So what are your plans in the US then?

We plan to have the largest market share of foundation design in the USA than any other designer out there. We are already in early with our work for Vineyard Wind, and we are keen to keep playing a part in the growth of the US industry. Our office in Boston is now open and we are growing our US based team under our President and CEO for WT USA, Matt Palmer. We’re partnering with various organisations on everything from US licensing and permits to how best to tackle the challenge of the suitability of ports, transportation, installation and servicing. We’ve got a lot of experience and learnings from other markets that can really help the US take a leading role in offshore wind.

Any final thoughts?

I’d say there are a couple of things for us to be thinking about as the industry moves forward. One is price and the other is contract structure. We all know the price of offshore wind has dropped significantly as markets have developed in Europe, particularly, but we do still have to be aware of the skills and expertise needed for this industry to thrive. The skills and expertise will benefit the States hosting the industry and the country as a whole but they do come with a pricetag. This means there will always be certain minimum costs to offshore development as there are with any type of development or any industry. The second is a much bigger crystal ball question about whether the structure of contracts may change as players from other industries move into offshore wind. Wood Thilsted’s whole senior team has some very particular views on that which we’d be more than happy to discuss with anyone. So come talk to us.