A lack of maturity in the US offshore wind supply chain has created the need for rapid expansion in products and services in order to deliver projects on time and on budget, a new study has concluded.
The analysis, commissioned by British Consulate-General in Boston, Massachusetts, was undertaken by consultancy Xodus to determine opportunities for UK companies to enter the US offshore wind market.
The study found that developers tend to de-risk a project by sticking with known entities and avoiding the perceived additional cost of EPCI contracts, especially for those with complexity, long lead times, and critical components.
The research shows there are multiple opportunities for experienced UK companies to become involved at early stages of industry development, assist from their home bases and leverage this acceleration to establish a local presence in the US.
Peter Abbott OBE, British Consul General to New England, said: “I’m delighted that the Xodus analysis has identified so many opportunities for UK companies to support the growing US offshore wind industry with their experience and expertise.
“With the largest amount of installed offshore wind capacity anywhere in the world, the UK is a global leader in offshore wind and our private and public sector expertise is therefore uniquely equipped to play a vital role in the US.
“In order to better support British companies from the UK’s thriving Northern Powerhouse region, home to some of Britain’s most dynamic offshore wind clusters, we have appointed Hannah Webb as the British Consulate’s offshore wind and clean energy trade officer to develop long-lasting partnerships in New England and along the East Coast of the United States.”
All contracted offshore wind farms under development in the US are located on the east coast and it is anticipated that $80bn in CapEx spend will be made in developing the industry by 2030, and that up to 80,000 jobs will be created.
With the recent Record of Decision granted to Vineyard Wind 1, it is anticipated that the approval of the other projects in the pipeline will accelerate.
Webb added: “A critical consideration for companies looking to enter the US offshore wind market is where to establish a presence.
“Supply chain clusters in the UK have been seen to support the development of unique skills and technology solutions in the offshore wind sector.
“Effective clusters work to leverage the supply capabilities within their membership to create linkages and generate growth opportunities. The collective demand from participants enables efficiencies in both identification and delivery of contracting opportunities and sector-wide support.”