Sat. Sep 23rd, 2023
    War in Ukraine Fuels Shift to Offshore Wind in Europe, Impacting U.S. Industry

    The war in Ukraine has had a significant impact on various industries, including offshore wind. One notable consequence is that European countries are now realizing their heavy dependence on natural gas from Russia and are actively seeking alternative sources of energy. This shift towards greater energy independence has led to increased interest and investment in offshore wind projects.

    Joris Veldhoven, CEO of Atlantic Shores, explains that the increased ambition of European countries to deploy offshore wind has created supply chain pressures. As a result, many suppliers no longer view the U.S. market as essential for their growth since there is a high demand in Europe.

    The global need for alternative energy solutions, including offshore wind, is also growing. However, several factors are hindering the development of the industry in the U.S. One of these factors is the contentious nature of offshore wind projects, which creates uncertainty for suppliers. They are concerned about the business climate, support from the government, and the progress of permits.

    Additionally, the industry in the U.S. is facing financial challenges due to supply and demand issues and inflationary pressures caused by the war and the pandemic. Structural changes are needed to address these challenges and provide a stable environment for offshore wind projects. Veldhoven emphasizes that these adjustments must be made quickly to ensure the industry can proceed as planned.

    Atlantic Shores has been engaging with various government and non-government organizations to find a solution that benefits all stakeholders. Rather than focusing on specific projects or states, Veldhoven emphasizes the need for an industry-wide solution to address the challenges faced by offshore wind developers.

    The urgency for finding a solution is driven by the timeline for approvals and contracts. To meet the financial investment decision timeline for Atlantic Shores’ projects, deals and contracts need to be finalized by the end of the year. This timeline ensures certainty for suppliers and allows for the necessary checks and reviews to proceed smoothly.

    In conclusion, the war in Ukraine has prompted a shift towards offshore wind in Europe, resulting in increased supply chain pressures and diminished interest in the U.S. market for some suppliers. Structural changes are necessary to address the financial challenges and uncertainties faced by the industry. A collaborative industry solution is being sought to ensure the growth of offshore wind and meet the urgent timeline for project development.

    – ROI-NJ