Offshore Wind Brings USD 70 Billion Opportunity to US Supply Chain
The U.S. offshore wind industry represents a circa USD 70 billion CAPEX revenue opportunity to businesses in the local supply chain, according to a new white paper by Special Initiative on Offshore Wind (SIOW).
The analysis, provided by Renewables Consulting Group (RCG), offers a road map for states and a menu for suppliers to build new offshore wind power capacity over the next decade, SIOW said.
The paper is said to quantify the timing and pace of USD 68.2 million in supply chain contracting prospects to install 18.6GW of offshore wind procurements forecast by 2030 on the Atlantic Seaboard.
According to SIOW, to build such a utility-scale U.S. offshore wind more than 1,700 turbines and towers worth USD 29.6 billion are necessary, as well as over 1,750 turbine and substation foundations worth USD 16.2 billion.
In addition, the development would require more than 5,000 miles of export, upland and inter-array cables worth USD 10.3 billion, over 60 onshore and offshore substations worth USD 6.8 billion and a wide range of marine support, insurance and project management activities worth USD 5.3 billion.
The study also details rising state commitments and forecast power procurements through 2030: New York 7.7GW (9GW by 2035), New Jersey 3.5GW, Massachusetts 3.2GW, Connecticut 2GW, Maryland 1.2GW, Rhode Island 1GW and Virginia 12MW, which together total more than 18GW.
"America's offshore wind industry is taking off and what people see now is just the tip of the iceberg," said Stephanie McClellan, study author and Director of SIOW, at the University of Delaware's College of Earth, Ocean and Environment.
"States and industry suppliers are leading the way and eager for clarity on the path ahead. Our analysis illuminates the market's supply chain needs, timing and pace, and $70 billion in CAPEX for businesses to translate GWs into growth opportunities and build this extraordinary enterprise."