Wood Mackenzie Offshore Wind Study – A Promising Look to the Future

By Joe Martens

A new study released on August 4th by international energy consultants Wood Mackenzie took a look at the economic benefits, including job-creation, of offshore wind development in the United States.  The study was commissioned by the New York Offshore Wind Alliance (NYOWA), American Wind Energy Association, the National Ocean Industry Association and the University of Delaware, Special Initiative on Offshore Wind.  The study looks at what could be if the Bureau of Offshore Energy Management (BOEM) moves ahead with the designation of wind energy areas (WEAs) and leasing in the New York Bight, off the Carolina coast, in the Gulf of Maine and in the Pacific off the coast of California.  The results are eye popping, especially in states that have aggressive renewable standards, like New York.

The study estimates total investment in the offshore wind industry of $17 billion by 2025, advancing to $108 billion by 2030 and jumping to $166 billion by 2035. From now until 2035, the report anticipates capital investments nationally of $42 billion in turbine manufacture and related supply chain activities, $107 billion to the construction industry and $8 billion for the transportation industry and related port development. And all this investment and activity will create family-sustaining jobs – lots of them.  The study estimates about 80,000 direct and indirect jobs annually though 2035.  In a nation suffering from pandemic-related unemployment, that is welcoming news.

Leasing in the NY Bight, were WEAs have been stalled, stands out as particularly promising.  The study estimates more than 2,000 jobs in the near term from 2022-24 and nearly 34,000 mid-term jobs 2025-30, mostly from construction activities.  Longer term, from 2031-35, nearly 5,800 good paying maintenance jobs are expected to be created.

To make this all a reality, BOEM simply needs to keep forging ahead with the WEA designation process and then hold lease sales.  And by the way, if it does so, the U.S. Treasury can expect about $2 billion in new revenue.  Another bonus as the pandemic has starved federal and state coffers.