| | DECEMBER 20228IN MY OPINIONADVANCING US OFFSHORE WIND THROUGH INNOVATION AND COLLABORATIONBy Parul Dhall, Senior Director of Low Carbon Technologies, NOV (NOV: NYSE) and Alberto Morandi, General Manager, Houston, GustoMSCPropelled by regulatory certainty and the demand for electricity from renewable energy in coastal areas, the use of offshore wind to generate power is rapidly expanding in the US. BloombergNEF forecasts that the country will reach 26.5 gigawatts (GW) of offshore wind capacity by 2030 and 54.3 GW by 2035. Like all new industries, however, offshore wind also faces challenges. Indeed, solving problems, cost reduction and scaling, standardized and local fabrication, workforce development, and ramping up the supply chain will be necessary for the speedy development and efficient and safe deployment of new and innovative offshore wind technologies.Fixed offshore wind turbines are installed on fixed-bottom foundations, such as monopiles, in shallow water depths of up to 60 m. For floating offshore wind, turbines are installed on floating platforms in deeper waters farther offshore. While the US currently has only 42 megawatts (MW) installed offshore wind capacity in Rhode Island and Virginia, the government has set ambitious offshore wind goals. By 2030, the federal government wants 30 GW offshore wind capacity and 15 GW floating offshore wind capacity by 2035. To meet these goals, it offers generous incentives for businesses associated with offshore wind projects: an investment tax credit (ITC) of 30% and a manufacturing tax credit (MTC). For example, a vessel receives a 10% MTC. The government is also expediting leasing vast sections of federal acreage offshore for commercial-scale wind projects. The Bureau of Ocean Energy Management (BOEM) has proposed plans for up to seven lease sales from 2022 to 2025 in the Gulf of Maine, New York Bight, Central Atlantic, the Gulf of Mexico, offshore the Carolinas, California, and Oregon. So far this year, BOEM has held lease sales in Carolina Long Bay and New York Bight, and the first floating wind lease sale is expected in California in 1Q 2023.States are also advancing offshore wind development by requiring specific shares of electric power to be generated by energy from renewable sources. These programs are called renewable portfolio standards (RPS). By 2030, Rhode Island and Massachusetts have set RPS goals of 31% and 35%, respectively. Several states and Washington, D.C. have set 100% RPS goals by 2050, including California, aiming for 5 GW of offshore wind by 2030 and 25 GW by 2045. Challenges for growth in US offshore wind include high costs and lack of supply chain, port, and transmission infrastructure constraints, and the need for Jones Act-Parul Dhall
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