In a show of unwavering support for the burgeoning U.S. offshore wind industry, the Biden administration has pledged its commitment, even as two significant offshore wind projects off the coast of New Jersey faced cancellation due to a combination of challenges.
The White House and the Interior Department swiftly issued statements endorsing the offshore wind sector, following the announcement by Denmark's Orsted that it was halting development on the projects due to soaring cost inflation, high interest rates, and supply chain bottlenecks. The growth of offshore wind power stands as a crucial element in President Joe Biden's strategy to decarbonize the U.S. power grid and combat climate change.
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White House spokesperson Michael Kikukawa emphasized that, while macroeconomic challenges have posed obstacles for some projects, the momentum remains firmly behind the expansion of the U.S. offshore wind industry. Kikukawa noted that offshore wind investments have surged by $7.7 billion since the enactment of President Biden's landmark climate change legislation last year.
The Bureau of Ocean Energy Management (BOEM), part of the Interior Department and responsible for permitting offshore energy development, is determined to fulfill the president's ambitions for the sector. These ambitions include the deployment of 30 gigawatts of offshore wind capacity by the year 2030.
In a statement, BOEM Director Liz Klein acknowledged that the industry is grappling with various challenges. Nonetheless, she underlined the commitment of BOEM and its federal partners to support the growth of this emerging industry in a manner that benefits communities, fortifies the nation's energy security, and addresses the pressing climate challenge.
