View by Mike Milledge - 08 July 2024
As the world races towards a sustainable energy future, the United States finds itself at a critical juncture. Empire Energy Partners Offshore Wind Division (Empire Energy Offshore), a leading voice in renewable energy development, is navigating the complexities of the U.S. wind farm industry’s dependence on imported monopiles, TPs and towers from Europe.
Recently, Sif Group, a Dutch company, announced that it would commence production of monopile foundations and TPs for the Empire Wind 1 offshore wind project next month at its Maasvlakte site in the Netherlands. This development underscores how the industry is making the most from European expertise and manufacturing capacity.
Transition pieces currently under construction. Image credit - Sif Group.
The European ExpertiseThe U.S. offshore wind industry, though burgeoning, is relatively young compared to its European counterparts. Europe, with its early and extensive investments in offshore wind energy, has honed its expertise in manufacturing offshore steel components. This has led to several advantages for European producers:
Established Manufacturing Expertise: European manufacturers, such as those in Germany, Spain and Denmark, have developed advanced techniques and processes that ensure high-quality monopile and tower production.
Economies of Scale: Large-scale European production has driven down costs, making European monopiles more economically competitive.
Specialised Facilities: Europe’s infrastructure includes specialised fabrication yards and ports tailored for monopile and tower production and transportation
Haizea Wind Group, Monopile Factory, Bilbao
The Benefits of Importing Wind Steel ComponentsFor Empire Energy Offshore and other U.S. developers, importing from Europe offers several benefits:
Quality and Reliability: European monopiles, TPs and towers come with a proven track record, ensuring reliability and durability in various marine environments.
Immediate Availability: With the rising demand for offshore wind projects in the U.S., European manufacturers can meet immediate needs without the lead time required to develop domestic production capabilities.
Technological Advancement: Access to advanced European manufacturing techniques and innovations can help elevate the overall quality of U.S. offshore wind projects.
The Benefits of U.S.-Made Wind Steel ComponentsHowever, domestic manufacturing of these steel components can provide significant positives to the industry, the U.S. economy and environmental impact:
Financial Benefits: U.S. manufacturing reduces the costs associated with shipping, customs, and tariffs can increase the overall expense of importing. Whereas U.S. manufacturers may qualify for a 10 per cent tax credit available to clean energy developers that use domestically made components under the Inflation Reduction Act.
Supply Chain Security: Having U.S. suppliers lowers risks such as shipping delays, political tensions, and trade disputes, and the large demand from the Far East which can disrupt project European delivery timelines.
Wider Economic Benefits: Domestic manufacturing of monopiles, TPs and towers means the economic benefits, such as job creation and investment, flow to the U.S. rather than contributing to the European economy.
Lower Environmental Impact: The carbon footprint associated with transporting large steel components across the Atlantic Ocean is considerable, partially impacting the environmental benefits of renewable energy.
Sparrows Point Steel, Maryland’s first permanent offshore wind factory - Image US Wind
Building a Domestic IndustryTo address these challenges, Empire Energy Offshore advocates for a strategic approach to developing domestic monopile and tower manufacturing capabilities. Such partnerships such as Baltimore-based US Wind, Inc. who announced its plan to form a long-term partnership with Haizea Wind Group Management S.L. to manage and operate Maryland’s first permanent offshore wind factory, or EEW which is building the first and largest facility for the production of monopiles for offshore wind turbines in the USA. These are great examples of what is needed. In expanding this Empire Energy Offshore can leverage its extensive experience and leadership in the renewable energy sector, and play a pivotal role in this transformation. Here’s how Empire Energy Offshore can drive the development of a domestic wind steel component industry:
Investment in Infrastructure
Manufacturing Facilities: Empire Energy Offshore can collaborate with investors and stakeholders to build or upgrade U.S. facilities capable of producing monopiles, TPs and towers, including steel mills and fabrication yards. The company’s extensive network and project management expertise can drive these initiatives.
Port Upgrades: By partnering with local governments and port authorities, Empire Energy Offshore can advocate for and help implement improvements in port infrastructure to handle the large-scale transportation and logistics required for monopile, TPs and tower production and assembly.
Announcement of new bill to create a $1 billion bond for offshore wind ports in California- Photo by Andy Smith
Government Policies and Incentives
Financial Support: Policymakers need to communicate better the subsidies, tax credits, and grants available to the supply chain which will encourage domestic production and offset the initial high costs of setting up manufacturing facilities.
Protective Tariffs: Implementing and maintaining tariffs on imported monopiles and towers can protect and nurture the emerging U.S. industry.
Strategic initiatives for offshore wind energy to become a critical part of the nation’s decarbonized energy sector and climate solution
Research and Development
Innovative Manufacturing: Investment in R&D initiatives focused on developing advanced, cost-effective manufacturing techniques and materials for monopiles, TPs and towers is essential. This includes fostering innovation through partnerships with research institutions and universities.
Collaborative Efforts: Public-private partnerships can lead efforts to share knowledge across the industry and promote the adoption of best practices.
Six participants earned their Global Wind Organization (GWO) Basic Safety Training certification during a five-day training session held in late January 2024 at the DTCC Georgetown campus.
Workforce Development
Training Programs: Developing specialised training programs to build a skilled workforce capable of supporting the offshore wind industry is vital. Collaborating with community colleges and vocational schools to offer relevant courses and certifications can achieve this.
Community Engagement: Engaging local communities in training and employment opportunities ensures that the economic benefits of the offshore wind industry are widely distributed.
Market Development
State-Level Initiatives: State governments can implement aggressive renewable energy mandates and incentives that drive demand for offshore wind projects. Showcasing successful projects and advocating for policy changes can help create a favourable market environment.
Corporate Investments: Promoting investments from large corporations committed to sustainability can further boost the market for domestically produced monopiles and towers.
Environmental and Sustainability EffortsGreen Manufacturing: Advocating for and investing in cleaner and more sustainable manufacturing processes to reduce the environmental impact of domestic production is crucial. This includes exploring innovative technologies and materials that minimize carbon emissions.
Local Sourcing: Prioritising the use of locally sourced materials to minimise the carbon footprint associated with transportation can further enhance the environmental benefits of offshore wind projects.
Empire Energy Offshore provides strategic consultancy services, delivering insights and practical solutions to optimise efficiency, mitigate risks, and drive sustainable success. From pre-assembly to operations and maintenance, cable inspection and repair, to pioneering floating wind solutions, the company’s seasoned professionals offer unparalleled support throughout the project lifecycle.
By aligning with these capabilities, Empire Energy Offshore can significantly contribute to developing a robust domestic industry, reducing the reliance on imported monopiles, TPs and towers, and ensuring the sustainable growth of offshore wind energy in the United States.
Looking Ahead
For Empire Energy Offshore and the broader U.S. wind farm industry, the path forward involves balancing immediate needs with long-term strategic investments. While importing monopiles, TPs and towers from Europe provide a stopgap solution, building a robust domestic manufacturing sector is crucial for the sustainable growth of offshore wind energy in the United States. By leveraging government support, investing in infrastructure, and fostering innovation, the U.S. can overcome the challenges of import dependency and become a global leader in renewable energy.
One of the most effective ways to accelerate domestic manufacturing is for the government to guarantee a pipeline of projects. This would give developers the confidence to invest in building new manufacturing facilities, knowing there will be a steady demand for their products.Additionally, ensuring that key decision-makers, such as the U.S. Secretary of Energy Jennifer Granholm, are aware of these initiatives is crucial. We can help secure the necessary support and resources to drive these efforts forward by promoting posts and articles like these to influential policymakers.
As the U.S. charts this course, the journey will require collaboration, investment, and a shared vision for a sustainable future. Empire Energy Offshore is committed to leading this charge, ensuring that the promise of offshore wind energy is realized for generations to come.
Mike Milledge - Snr Director Offshore Wind, Empire Energy Partners
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