April 4, 2023 — There’s a lot riding on the nascent offshore wind industry. Companies are investing hundreds of millions of dollars. The Biden administration wants 30 gigawatts of offshore wind power by the end of the decade. It could mean billions of investment in new manufacturing capacity. Offshore wind is being billed as a key part of a clean energy future for the United States.
Offshore wind farms are massive projects, with up to 100 or more wind turbines standing hundreds of feet above the ocean. They take decades to plan and get approved. As this industry has worked to get off the ground in the United States, companies have wrestled with how to deal with a 100-year-old law called the Jones Act.
The Jones Act, passed by Congress in 1920, says that only U.S.-flagged ships can move cargo from one point in the United States to another. The ships must have been built in the U.S. and be crewed by Americans. The offshore wind industry uses big, specialized ships to assemble the turbines miles out at sea, but there is not a single U.S.-flagged ship right now that can do that work.
“If you bring a part, say you bring in a cell, which is where the generator is housed for an offshore wind turbine — those are only manufactured in other parts of the world right now, primarily in the EU or southeast Asia,” explained Katharine Kollins, with the Southeast Wind Coalition, which promotes wind energy.
“Normally you would place that on the U.S. coast. If you do that, you need a U.S.- flagged vessel to install that,” she said.
So companies that are doing the early offshore wind projects on the East Coast have had to come up with workarounds. Dominion Energy, based in Virginia, put up test turbines off the Virginia coast and had to ferry parts back and forth from Canada to avoid running afoul of the Jones Act.
Companies doing offshore wind farms can also use U.S.-flagged ships to ferry pieces out to the specialized assembly vessels.
Dominion is planning to build an offshore wind farm off the Virginia coast. There are also projects in the early stages off North Carolina’s Outer Banks and off the southeast tip of North Carolina.