September 6, 2023 — A fleet of U.S. offshore wind projects central to President Joe Biden’s climate change agenda may not move forward unless his administration eases requirements for subsidies in the year-old Inflation Reduction Act, according to project developers.
Norway’s Equinor, France’s Engie (ENGIE.PA), Portugal’s EDP Renewables (EDPR.LS), and trade groups representing other developers pursuing U.S. offshore wind projects told Reuters they are pressing officials to rewrite the requirements, and warning of lost jobs and investments otherwise.
“The components needed for our projects to progress simply do not exist in the U.S. at this time, and we see no signs that the supply chain will be ready in time to meet our procurement schedule,” said David Marks, a spokesperson for the U.S. renewables division of Equinor (EQNR.OL).
Denmarks’ Orsted (ORSTED.CO), a top offshore wind developer, warned last week that barriers to securing U.S. subsidies under the IRA, combined with soaring interest rates and supply chain delays, could lead to $2.3 billion in impairments for three projects, sending its stock plummeting.