The U.S. offshore wind industry already has created thousands of jobs in American factories, ports, and shipyards, driving billions in new investments across the nation while supplying reliable power to help meet our country’s growing electricity demand. Today, the U.S. offshore wind supply chain spans 39 states and had garnered more than $24 billion of investment into ports, shipyards, research, shared transmission projects, workforce development, and manufacturing facilities.
Welders, engineers, shipbuilders, technicians, and vessel operators bring this industry to life. They are thriving in factories where components are manufactured, where shipyards are crafting purpose-built vessels, and where ports are being transformed into hubs of activity –– from the Northeast to the West Coast and everywhere in between. This is a story of success, momentum, American ingenuity, and grit.
An American Port Revival
Ports are the lifeblood of the offshore wind industry, providing the necessary infrastructure for the construction, assembly, and maintenance of wind projects. The development of offshore wind ports has already led to significant economic benefits for waterfront cities along the East Coast. The New Bedford Marine Commerce Terminal in Massachusetts and the Port of Providence in Rhode Island have become key hubs for offshore wind activities, supporting hundreds of jobs and attracting substantial investments.
The New Jersey Wind Port is another critical development, expected to sustain 1,500 jobs once fully operational. This port will serve as a major manufacturing and assembly hub for offshore wind projects, highlighting the long-term economic benefits of investing in port infrastructure.
One significant development in recent years is the construction of new deep-water ports, particularly in New England. These projects are essential for supporting the installation and operation of offshore wind farms, able to accommodate the large components required. In Massachusetts, development of the $300 million Salem Offshore Wind Terminal is underway on the site of a former oil- and coal-fired power plant. This terminal is set to become the largest offshore wind port in the region. Also in Massachusetts, the New Bedford Foss Marine Terminal completed construction of its deep-water berth, enabling docking for large capital vessels. This development is part of a broader expansion of the New Bedford Marine Commerce Terminal, supported by a $15 million investment from SouthCoast Wind. In Rhode Island, construction has commenced on a new pier at Quonset Business Park’s Port of Davisville. This pier will berth crew transfer vessels (CTVs) for various offshore wind projects, facilitated by $31.3 million in federal and state funding. These investments in port infrastructure are vital for the efficient and effective deployment of offshore wind projects, ensuring that the necessary support facilities are in place to handle the increasing scale of operations.
Vessel Capacity Continues to Grow
Announcements of new vessel launches and manufacturing facilities have also been key milestones for the industry over the last several years. Four new CTVs were launched recently, two from Gulf shipyards and two from New England shipyards. This brings the total number of CTVs launched in 2024 to 10, highlighting the growing capacity of the U.S. maritime sector to support offshore wind operations. The first U.S.-built service operation vessel (SOV), the ECO Edison, also launched earlier this year, further enhancing the industry’s operational capabilities.
Despite the steady stream of vessel launches, there has been a noticeable slowdown in new vessel orders in 2024. Uncertainty surrounding the upcoming federal presidential election led to a deceleration in private investment to some extent. However, there have been significant investments in manufacturing facilities that will support the offshore wind industry in the long term.
Manufacturing Facilities See Continued Investment
The U.S. offshore wind industry continued to see investments in new manufacturing facilities in 2024. One of the most notable recent announcements was that of a new $681 million manufacturing facility by LS GreenLink in Hampton Roads, Virginia. This facility, supported by a $99 million federal tax credit, will produce high-voltage direct current (HVDC) cables essential for offshore wind projects. Once operational, the facility is expected to employ more than 300 people, contributing to the local economy and the broader supply chain for offshore wind.
Progress in the construction of new facilities and vessels has been bolstered by strong support from both federal and state governments. The Bureau of Ocean Energy Management (BOEM) has played a pivotal role in advancing the offshore wind industry, maintaining a steady course in permitting and auctioning new lease areas. BOEM has approved construction plans for 10 commercial-scale projects, representing more than 15 GW of generation capacity. This milestone underscores the federal government’s commitment to supporting the growth of the offshore wind sector.
States Drive the Market Forward
At the state level, several states have made significant strides in advancing their offshore wind projects. Massachusetts, Rhode Island, New Jersey, New York, and Maryland are actively pushing forward new offtake agreements and procurement rounds. Massachusetts and Rhode Island’s joint procurement round awarded provisional contracts for three offshore wind projects totaling 2,878 MW. Massachusetts allocated 2,678 MW across Vineyard Wind 2, SouthCoast Wind, and New England Wind 1, while Rhode Island awarded 200 MW to SouthCoast Wind.
New Jersey’s fourth round sought between 1,200 and 4,000 MW and received proposals from four projects representing capacity that could exceed the state’s upper limit. Similarly, New York’s Fifth Round was oversubscribed with proposals representing 6,870 MW from four projects. These procurement rounds are crucial for securing the necessary off-take agreements that will drive the construction and operation of new offshore wind projects.
Companies Pivot to Support Offshore Wind
New York has also been a significant player in the offshore wind supply chain, with numerous companies contributing to the development of new facilities for the industry. The state’s supply chain network includes manufacturers and fabricators who have mobilized to fill the demand for turbine components. Riggs Distler, a local Tier 1 supplier for secondary steel, has been instrumental in building components for Ørsted’s Sunrise Wind project. This project — 30 miles off the coast of Montauk Point, New York — is a prime example of how local companies are supporting the offshore wind industry.
Ljungström, a New York-based steel fabricator, has also played a crucial role in advancing the offshore wind supply chain. The company has transitioned from supplying components for coal-fired power plants to manufacturing advanced foundation components for offshore wind projects. This shift has not only revitalized the company but also brought economic benefits to the town of Wellsville, New York, where it is based. The company’s investments in facility upgrades and workforce training have ensured it can meet the demands of the offshore wind industry while providing high-quality jobs to the local community.
Louisiana-based Otto Candies LLC is another example of how companies from traditional energy sectors can successfully transition to offshore wind. Known for its work in the offshore oil and gas industry, Otto Candies has retrofitted several of its vessels to support offshore wind projects. These retrofitted service operation vessels (SOVs) have been crucial for projects like South Fork Wind and Vineyard Wind. The company’s innovative approach, which includes outfitting vessels with walk-to-work gangways and portable accommodation units, has provided cost-effective solutions for the offshore wind industry.
The Path Forward
While the U.S. offshore wind industry has made significant progress, it still faces several challenges. Rising costs and global economic instability have led to the alteration or termination of many project offtake agreements signed between 2017 and 2022. This has necessitated the renegotiation of agreements and the search for new offtake partners.
Despite these challenges, the outlook for the offshore wind industry remains positive. Federal and state governments continue to provide strong support, and the industry is poised for impressive growth. The continued construction of new ports, manufacturing facilities, and vessels will be critical for maintaining this momentum and ensuring the successful deployment of offshore wind projects.
These steps can only be achieved by spreading the word about success and momentum of the U.S. offshore wind industry, and the thousands of jobs it has created and continues to create. It’s a story that must be told at every opportunity. The industry as a whole must resolve to speak with elected officials and showcase its successes on social media and in the press. Continuing progress requires everyone to take an active role in demonstrating the massive economic value of an industry that is advancing the nation’s economy, combatting rising costs, and delivering more domestic energy.
About the author
Melinda Skea is vice president of strategic communications for Oceantic Network. Oceantic strives to help businesses find success in offshore wind and other ocean renewable industries. It’s mobilizing governments, corporations, and organized labor to take advantage of the vast offshore wind and renewable energy resources that lie in the world’s oceans. For more information, go to oceantic.org.
