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Trump pauses offshore wind approvals and lease auctionsTrump pauses offshore wind approvals and lease auctions

Offshore wind, a subject of Trump’s ire since the time of his first term 2017 - 2021 and was in the crosshairs of a Day 1 Executive Order of his second term.

Barry Parker, New York Correspondent

January 23, 2025

2 Min Read
Offshore wind turbines
Credit: Pixabay

Following up on promises during the 2024 Presidential campaign, the Executive Order initiates a pause on new Lease Sale Auctions and in effect until the Order is overturned in the future- presumably when a Democratic administration comes into office. This is where tracts on the Outer Continental Shelf are auctioned off by the Department of the Interior; the leasing precedes actual project development by many years.

For projects already underway, with development tracts awarded through previous lease auctions, the Executive Order initiates a six month pause on the numerous approvals underway within the Department of the Interior; these include construction permitting, operations plans, as well as a host of environmental matters. 

During this pause period, Federal government agencies“…shall not issue new or renewed approvals, rights of way, permits, leases, or loans for onshore or offshore wind projects pending the completion of a comprehensive assessment and review of Federal wind leasing and permitting practices.  The Secretary of the Interior shall lead that assessment and review in consultation with the Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Commerce, through the National Oceanic and Atmospheric Administration, the Secretary of Energy, and the Administrator of the Environmental Protection Agency.”

Related:Trump removes US Coast Guard Commandant Linda Fagan

Analysts at Rystad Energy summarised the situation as follows: “The US currently has around 2.4 gigawatts (GW) of advanced-stage offshore wind developments that have reached final investment decision and are under construction, which are unlikely to be impacted by the order….Moderate risk amid the unfavourable investment climate is present for 10.5 GW of projects which secured necessary permits but have not reached investment decisions… The remaining 25 GW of early-stage projects are unlikely to see any progress under the current administration.”

One existing project, previously known as Block Island Wind now in the realm of Ørsted US Offshore Wind, has been generating 30 mW of electricity from five turbines since 2016.

The projects already under construction, which by definition have already been approved, include Vineyard Wind 1 - offshore Martha’s Vineyard, already generating power from turbines installed beginning in early 2024, Dominion Energy’s Coastal Virginia Offshore Wind (CVOW) -  off the coast of Virginia Beach , and Empire Wind 1 in the “New York Bight”.

The Vineyard Wind 1 project, which saw an installation delay due to issues with blades during mid 2024, will eventually generate 800 mW of electricity. CVOW, with two small turbines already operating, will eventually be producing 2.6 gW of electricity, if all goes according to plan. Empire Wind 1 an Equinor project, with a targeted 810 mW of power generation (not generating electricity presently), is tied to redevelopment of one time waterfront terminal space in Brooklyn, New York Harbour, into a hub for offshore wind.

Related:Panama rejects Trump promise to take back Panama Canal

Resource: The Executive Order re offshore wind https://www.whitehouse.gov/presidential-actions/2025/01/temporary-withdrawal-of-all-areas-on-the-outer-continental-shelf-from-offshore-wind-leasing-and-review-of-the-federal-governments-leasing-and-permitting-practices-for-wind-projects

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About the Author

Barry Parker

New York Correspondent

Barry Parker is a New York-based maritime specialist and writer, associated with Seatrade since 1980. His early work was in drybulk chartering, and in the early 1990s he moved into shipping finance where he served as a deal-maker and analyst with a leading maritime merchant bank. Since the late 1990s he has worked for a group of select clients on various maritime projects, also remaining active as a writer.

Barry Parker is the author of an Eco-tanker study for CLSA and a presentation to the Baltic Exchange Freight Market User Group on the arbitrage of tanker FFAs with listed tanker equities.

 

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