Saving Seafood

Economic Impact

As industry struggles, federal, state offshore wind goals could get tougher to meet

November 3, 2023 — Good news or bad news first? Because there was plenty of both this week for the fledgling U.S. offshore wind industry.

On Halloween, the Biden administration announced that the nation’s largest planned offshore wind development, Dominion Energy’s 2,600 megawatt Coastal Virginia Offshore Wind project, received its last major federal approval.

The same day, however, Danish wind giant Ørsted pulled the plug on a pair of projects (Ocean Wind 1 and 2) that were planned off the coast of New Jersey, citing climbing interest rates, inflation and “supply chain bottlenecks.” The news touched off a firestorm in New Jersey, which has set some of the most aggressive offshore wind goals in the country and gone to considerable lengths to plan the transmission upgrades needed to bring all that power ashore.

The same financial headwinds have many U.S.offshore wind developers looking to renegotiate deals as the costs of their projects climb. And it’s casting some doubt on whether states and the Biden administration will be able to hit their offshore wind targets on time.

Read the full article at the New Jersey Monitor

Groundfish Forum predicts wild-caught whitefish supplies will remain flat in 2024

November 3, 2023 — The International Groundfish Forum, an organization representing the global groundfish sector, is predicting the global supply of wild-caught whitefish will remain flat in 2024 as some species see gains while others see big drops.

The forum, which met in Athens, Greece in October, predicted that the total supply of wild-caught whitefish would be 7.042 million metric tons (MT), down just 1,000 MT from the 7.043 million MT available in 2023. The slight decrease still represents a higher supply than 2022, when the industry had 6.938 million MT to work with.

Read the full article at SeafoodSource

 

Offshore wind is stumbling. Can Biden save the industry?

November 2, 2023 — The Biden administration is facing increasing pressure to take action to bolster the offshore wind industry after a major project was canceled in New Jersey on Tuesday, although options appear limited to ease financial hurdles facing developers.

So far, the administration is reiterating that the industry will continue to grow and that President Joe Biden’s goals for 30 gigawatts of offshore wind by 2030 will be achieved, even as many states and analysts say otherwise.

“Biden’s offshore wind goals look impossible at this point of time,” said Chelsea Jean-Michel, a wind analyst with BloombergNEF, a research and analysis firm.

Read the full article at E&E News

U.S. offshore wind sector ‘fundamentally broken’ – BP exec

November 1, 2023 — BP’s renewables boss said on Wednesday the U.S. offshore wind industry is “fundamentally broken” as BP and its partner Equinor (EQNR.OL) study options to develop huge projects off the coast of New York after writing down $840 million of their value.

The offshore wind industry, one of the fastest growing energy sectors, has recently suffered a string of major setbacks due to equipment reliability issues, supply chain problems and sharp cost increases.

Orsted (ORSTED.CO), the world’s largest offshore wind developer, on Wednesday flagged writedowns of up to $5.6 billion after halting the development of U.S. offshore wind projects.

Anja-Isabel Dotzenrath, BP’s head of gas and low carbon, said that problems in the United States included permitting, the time lag between signing power purchase agreements and projects being built and a lack of inflationary adjustment mechanisms

Read the full article at Reuters

America’s Offshore Wind Ambitions Are Coming With Bigger Price Tags

November 1, 2023 — Soaring costs are pushing up the price of big wind-power projects, challenging the country’s shift to renewable energy and potentially leading to larger-than-expected bills for residents.

New York state officials in recent days unveiled a slate of wind-farm proposals that would result in higher electricity rates for residents than previously approved plans. That has firms behind older bids rushing to see if they can resubmit their plans at or near the new rate.

The projects are among the country’s biggest and are being closely watched because they show how a nascent industry that is key to the U.S. energy transition will work through the upheaval of escalating costs. The struggles are threatening delays in the current pipeline of projects, which analysts say could hamper the Biden administration’s offshore wind ambitions.

Read the full article at the Wall Street Journal

Orsted hit by up to $5.6 billion impairment on halted US projects

November 1, 2023 — Renewable energy firm Orsted (ORSTED.CO) on Wednesday halted the development of two U.S. offshore wind projects and said related impairments had surged above $5 billion, as the industry grapples with supply chain delays and higher costs.

Orsted, the world’s largest offshore wind developer, said it would stop developing its 2,248-megawatt (MW) Ocean Wind 1 and 2 projects in New Jersey. Related impairments could amount to as much as 39.4 billion Danish crowns ($5.58 billion).

Its stock plunged as much as 22% to a six year low of 265 crowns.

The offshore wind industry has found itself in a perfect storm of rising inflation, interest rate hikes and supply chain delays, casting doubt on plans by U.S. President Joe Biden and several states to use offshore wind to replace fossil fuels in energy production to fight climate change.

On Tuesday, energy major BP (BP.L) booked a third-quarter writedown of $540 million on wind projects after officials in New York state rejected a request for better terms to reflect what BP called “inflationary pressures and permitting delays”.

Read the full article at Reuters

Wind industry deals with blowback from Orsted scrapping 2 wind power projects in New Jersey

November 1, 2023 — Wind energy developer Orsted is writing off $4 billion, due largely to the cancellation of two large offshore wind projects in New Jersey whose financial challenges mirror those facing the nascent industry.

It added fresh uncertainty to an industry seen by supporters as a way to help end the burning of planet-warming fossil fuels, but derided by opponents as inherently unworkable without massive financial subsidies.

The Danish company said Tuesday night it is scrapping its Ocean Wind I and II projects off the coast of southern New Jersey due to problems with supply chains, higher interest rates, and a failure to obtain the amount of tax credits the company wanted.

“These are obviously some very tough decisions,” Mads Nipper, Orsted’s CEO, said on an earnings conference call Wednesday.

He said the company, the world’s largest offshore wind developer, decided “to de-risk the most painful part of our portfolio, and that is the U.S.”

That statement went straight to the heart about concerns over the financial viability of the offshore wind industry in the northeastern U.S., which is in its infancy but has extensive plans from New England to the Carolinas.

Some projects already have been canceled, and many offshore wind developers are seeking better terms from governments with whom they have already contracted. New York rejected such a request two weeks ago.

New Jersey approved a tax break for Orsted in July, letting it keep federal tax credits that otherwise would have gone to ratepayers.

Read the full article at the Associated Press

American Shrimp Processors Association push for duties on imported shrimp from four countries

October 26, 2023 — The American Shrimp Processors Association (ASPA), an organization representing the interests of U.S. wild-caught warmwater shrimp processing, has filed trade petitions seeking additional antidumping and countervailing duties on imported shrimp.

The trade petitions, which the ASPA said are intended to address unfair dumping and illegal subsidies, consist of a request for antidumping duties on imported frozen warmwater shrimp from Ecuador and Indonesia, and countervailing duties on imported shrimp from Ecuador, India, Indonesia, and Vietnam.

Read the full article at SeafoodSource

Trustee overseeing Blue Harvest bankruptcy planning auction of vessels, permits on 6 November

October 18, 2023 — The trustee overseeing Blue Harvest Fisheries’ Chapter 7 bankruptcy proceedings has filed a motion to proceed with an auction of all the company’s remaining assets on 6 November, as some of the company’s fleet is reportedly already being scrapped.

Blue Harvest filed for Chapter 7 bankruptcy protection on 8 September, soon after the company shut down all of its operations. Chapter 7 bankruptcy means the company has officially ceased all of its operations and will be sold off to pay creditors, many of whom will likely see little compensation after what is left of Blue Harvest’s property is sold.

Read the full article at SeafoodSource

Alaskan seafood nabs higher profile at Seattle’s Climate Pledge Arena

October 18, 2023 — The Bristol Bay Native Corporation and the Bristol Bay Regional Seafood Development Association are getting a higher profile for Alaskan seafood at Climate Pledge Arena in Seattle, Washington, U.S.A.

Timed with the Seattle Kraken’s first home game of the season on 17 October – a National Hockey League franchise that plays at the arena – BBNC’s Bristol Bay Wild Market is opening in a new, more prominent location in the arena.

Read the full article SeafoodSource