Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Economy

The Wind Industry Is Putting on a Brave Face

After Trump’s executive orders took aim at wind developers, they’re mostly keeping a stoic silence.

A wind turbine and a huge wave.
Heatmap Illustration/Getty Images

The newly inaugurated president does not like the wind industry. Especially the offshore wind industry.

Donald Trump on Monday night issued an expansive executive order targeting the sector that the industry is only just starting to digest. And while the executive order was mostly being seen as a pause or moratorium on new offshore leasing, it could have much more wide-ranging effects. It calls for the Secretary of the Interior and the Attorney General to “conduct a comprehensive review of the ecological, economic, and environmental necessity of terminating or amending any existing wind energy leases, identifying any legal bases for such removal,” thus calling gigawatts of existing, permitted projects into doubt.

“The executive order pausing new offshore wind leasing and permitting is a blow to the American offshore wind industry and hurts the hundreds of U.S. supply chain companies and thousands of workers already building more American energy,” Liz Burdock, the chief executive officer of the Oceantic Network, an offshore wind industry group, said in a statement. “Today’s actions threaten to strand $25 billion already flowing into new ports, vessels, and manufacturing centers, and curtail future investments across our country.” Companies that have active offshore projects have been largely mum on the order. A spokesperson for Orsted, the Danish company behind the under-construction Revolution Wind project off the coast of Rhode Island and the Sunrise Wind project off the coast of Long Island, told me only that it was “in the process of reviewing it to assess the impact on our portfolio.”

A spokesperson for Equinor, which is working on the Empire Wind project, projected to start serving New York City in 2026, told me, “Equinor is committed to advancing a broad energy portfolio that supports a domestic supply chain, generates skilled jobs, and makes a lasting contribution to American energy security. We will continue to assess all policy developments and work with the Trump administration as we deliver long-term energy solutions for the growing American economy.”

Several other major offshore and onshore wind developers, including Pattern Energy, Avangrid, and NextEra either did not respond to requests for comment or would not comment on their ongoing projects in light of the order.

Trade group officials and outside experts were skeptical that the order would stop projects currently under construction like Revolution Wind, Vineyard Wind in Massachusetts, or the Coastal Virginia Offshore Wind Project, backed by the utility Dominion. Projects like Empire and Sunrise Wind, which have started some onshore construction, may survive as well. But the Biden Administration also permitted a flurry of projects in its final year, including SouthCoast Wind, New England Wind, Atlantic Shores South, and the Maryland Offshore Wind Project, and those may now be in doubt.

“Projects with steel in the water are probably safe,” Cy McGeady, a fellow in the Energy Security and Climate Change Program at the Center for Strategic and International Studies, told me. “I’d be shocked if a project with steel in the water has its permit revoked.” But of those that haven’t yet gotten started, he cautioned, “It’s those projects that are most at risk.”

Shares of Orsted fell over 9% in the United States Tuesday after the company announced $1.7 billion in impairments due to delays on its Sunrise Wind project — not related to the executive orders. The company also said it was marking down the value of its leases off the coasts of New Jersey, Maryland, and Delaware, and cited “considerably increased project costs,” as well as delays linked to transmission equipment for the wind turbines.

“Delivering the project within the updated schedule and cost is an absolute top priority for Orsted,” the company’s chief executive Mads Nipper said in a statement on the accounting changes.

The executive order comes after a dreadful few years for the offshore wind industry, which has been hammered by high costs, delays, and interest rate hikes, which led to several project cancellations even before Trump’s victory. The wind industry as a whole has seen slowing growth, thanks to difficulties building adequate transmission, exposure to high interest rates, and rising local opposition. New wind energy additions in the United States peaked in 2020 and 2021 with 14 gigawatts of added capacity, falling to just over 6 gigawatts in 2023.

The executive order also, at best, means no more new leasing for the duration of Trump’s time in office, calling into question the growth prospects of the whole offshore wind industry in the United States. Onshore wind may be on firmer ground, as many projects, especially in Texas, are not built on federal lands and do not require the full federal permitting process to be built.

“If the growth prospects are curtailed or drastically limited or at least diminished for the next four-plus years,” McGeady told me, referring to the offshore wind industry, “then it’s much harder to justify costs in the near term investment and expenditure of capital for an industry that might never launch.”

Blue

You’re out of free articles.

Celebrate the Fourth of July with us and save 20% off an annual subscription, now just $99 $79/year with code: FIREWORKS
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Daily Briefing

A Progressive Plan to Freeze Electricity Rates Without Starving the Grid

Plus, Google and Amazon report on what hyperscaling has done to their emissions.

A Progressive Plan to Freeze Electricity Rates Without Starving the Grid
Illustration by Simon Abranowicz

There’s an interesting new report out today from the progressive think tank Groundwork Collaborative that makes a case for how Democrats can harness the artificial intelligence and data center boom to help the power grid — while also cutting costs for electricity customers.

But first, some news. We’ve known for some time now that artificial intelligence is transforming America’s biggest technology companies, turning them into major energy consumers and even quasi-industrial firms. Now we have even more evidence that it’s driving up their carbon emissions, too.

Keep reading...Show less
Politics

New Jersey Lawmakers Just Nixed a 2-Year-Old Data Center Tax Credit

The bill is part of a package now sitting on Governor Mikie Sherrill’s desk.

New Jersey Lawmakers Just Nixed a 2-Year-Old Data Center Tax Credit
Illustration by Simon Abranowicz

Data center politics are continuing to evolve rapidly, and almost always in the direction of increasing costs and restrictions for data center development.

In New Jersey, which has become ground zero for the political backlash to high electricity prices, a gaggle of bills relating to data centers and electricity prices just hit the desk of newly elected Governor Mikie Sherrill, including a large load tariff bill, a water and energy reporting bill, and a bill to scale back tax credits available to data center projects.

Keep reading...Show less
Green
Carbon Removal

Carbon Removal Buyers Are Pumped About Industrial Waste

What the heck is “surficial mineralization”?

A cloud and mine tailings.
Heatmap Illustration/Getty Images

According to one of the world’s leading carbon removal buyers, the sector’s future lies in piles of industrial waste.

When Frontier, the Stripe-led coalition of carbon removal supporters, announced its latest $915 million funding commitment, it took the opportunity to lay out the five technologies it views as most promising. I was familiar with four of them — ocean alkalinity enhancement, biomass carbon removal and storage, enhanced rock weathering, and direct air capture. Heatmap has covered them all. But the name on the very top of the list stumped me: surficial mineralization.

Keep reading...Show less