The chief executive of GE Vernova has said he will keep his search for new offshore turbine orders “on ice” as he waits for market conditions to improve.
According to an FT article published this morning, Scott Strazik (pictured) said he wants a better economic environment following a difficult period for the offshore wind industry, which has been dealing with supply chain strains and rising interest rates.
Donald Trump’s re-election has added uncertainty to the sector.
GE Vernova’s approach to focus on existing offshore turbine projects, which includes supplying the UK’s Dogger Bank Wind Farm in the North Sea, well predates the election and is not connected to Trump’s victory, however.
He described offshore wind projects as “exponentially more complicated” than onshore.
In the piece, Strazik said he hopes over the next two years “the market will create economic incentives and opportunities for us to do business that [are] drastically different economic terms than the economics we’re executing on today.
“If that presents itself, we’re going to work hard to serve that market. But it’s not a market opportunity that we see in front of us right now.”
The company’s offshore wind turbine unit has a $3bn backlog of orders that would take about two years to complete and has not added to the backlog for almost three years.
“We still look at the pricing environment and, relative to being focused on adding to the backlog today, we’re much more focused on executing and serving our existing customers as well as we possibly can,” Strazik said.