Factbox: US offshore wind projects in operation or development in 2024

Avangrid

07/02/2024 22:08

Feb 7 (Reuters) - The U.S. offshore wind industry is
expected to play a major role in helping several states and
President Joe Biden meet goals to decarbonize the power grid and
combat climate change.
    But progress slowed in 2023 after offshore developers
cancelled contracts to sell power in Massachusetts, Connecticut
and New Jersey, and threatened to cancel agreements in other
states, as soaring inflation, interest rate hikes and supply
chain problems increased project costs.
    There are currently four offshore wind farms producing power
in the United States, but others are being constructed.
    Below is a list of projects that are operating and in
development. One megawatt of offshore wind can power about 500
U.S. homes.
    
    IN FULL OPERATION:
    Two projects are small and have been operating for years -
Orsted's  ORSTED.CO  29-megawatt (MW) Block Island off Rhode
Island and Dominion Energy's  D.N  12-MW Coastal Virginia
Offshore Wind Pilot off Virginia.
    
    IN OPERATION BUT STILL UNDER CONSTRUCTION:
    South Fork
    Orsted/Eversource Energy's  ES.N  132-MW project started
supplying power to New York in December. Eversource has said it
plans to divest its 50% stake.
    Orsted said in its 2023 annual report that it expects to
complete the project in the first quarter, with some analysts
saying it could enter full service in coming weeks.
    
    Vineyard Wind 1
    Avangrid  AGR.N /Copenhagen Infrastructure Partners' 806-MW
project began supplying power to Massachusetts in January.
    Analysts have said most of the project's 62 monopiles have
been installed, but noted the vessel installing the monopiles
went to another project. Monopiles are steel tubes driven into
the seabed.
    "Vineyard Wind 1 has fully contracted for the construction
of the project, including all necessary vessel support ...
monopile installation may recommence in Spring 2024," Avangrid
said. 
    Analysts said the vessel needed to install the monopiles was
expected to return to the site in May, which should allow
developers to complete the project later this year.
    Avangrid is part of Spanish energy firm Iberdrola  IBE.MC .
    
    UNDER CONSTRUCTION BUT NOT YET PRODUCING:
    Revolution Wind
    Orsted/Eversource started construction on the 704-MW project
off Rhode Island and Connecticut in 2023.
    Orsted said in its 2023 annual report that it expects to
complete Revolution in 2025.
    Eversource said it planned to divest its 50% stake.
             
    Coastal Virginia Offshore Wind
    Dominion started onshore construction of the 2,587-MW
project off Virginia around November 2023 and expects to start
offshore construction in 2024 and complete the project in late
2026.
    Dominion has said the roughly $10 billion project is on
budget and on schedule. The company has also said it is looking
for partners in the project.
       
    Sunrise Wind
    Orsted/Eversource's 924-MW Sunrise project off New York is
waiting to see if its bid in New York's fourth offshore wind
solicitation is successful.
    The project was awarded a contract to sell power to New York
from the state's first offshore solicitation in 2019.
    The developers, however, cancelled the 2019 contract to
rebid the project at a higher price in New York's fourth
solicitation in January.
    Orsted and other developers, including Equinor  EQNR.OL  and
BP  BP.L , have said that some old contracts were uneconomic due
to soaring inflation and interest rates.
    Orsted said about 2.1 billion Danish crowns ($303 million)
of the 26.8-billion Danish crown impairment it took in the third
quarter of 2023 was for Sunrise.
    Orsted said it will reduce the Sunrise impairment loss by
about 1.8 billion Danish crowns if its gets an award in New
York's fourth solicitation. But, if it does not get an award,
the impairment loss will be about 5.5 Danish crowns higher.
    Orsted also said it would acquire Eversource's 50% stake in
Sunrise if the bid is successful.
    Orsted said it expects New York to pick the winners of the
fourth solicitation in March.
    
    Empire Wind 1
    Equinor/BP's 816-MW project off New York is also waiting to
see if its bid in New York's fourth offshore solicitation was
successful.
    Equinor and BP in January agreed to swap ownership of their
offshore wind projects with Equinor getting Empire Wind and BP
getting Beacon Wind.
    Like Sunrise, Empire Wind 1 had a contract from 2019 to sell
power in New York from the state's first solicitation.
    And like Sunrise, Equinor cancelled that contract to rebid
the project in New York's fourth solicitation.
    If successful, Equinor said the project could produce first
power in 2026.

 (Reporting by Nerijus Adomaitis, Nora Buli, Nichola Groom and
Scott DiSavino, Editing by Rosalba O'Brien)
 ((nerijus.adomaitis@thomsonreuters.com; +47 9027 6699; Reuters
Messaging: nerijus.adomaitis.thomsonreuters@reuters.net))