The first U.S. utility-scale offshore wind farm entered service on March 14 about 35 miles off the coast of Long Island, with the promise of generating enough power for about 70,000 homes at full capacity.
The 12-turbine, 130-megawatt South Fork Wind project is a joint venture between Denmark's Orsted and New England-based electric utility Eversource.
New York aims to reach 70% renewable energy by 2030 and to install nine gigawatts of offshore wind by 2035, and state Governor Kathy Hochul lauded the project as bringing it closer to those goals. "This is just the beginning of New York's offshore wind future," she said.
But the startup comes up at a time the offshore wind business has been plagued by rising costs tied to inflation, interest rates and supply chain constraints, forcing companies to write down assets and exit projects.
Eversource is one of a number of energy companies to recently announce it was exiting the offshore wind business. It plans to sell its stake in South Fork to Global Infrastructure Partners.
The uncertainty over offshore wind could jeopardize plans by U.S. President Joe Biden and several states, including New York, to meet their goals to decarbonize the power grid in an effort to fight back climate change.
Earlier this week, European energy firms Equinor and BP terminated their agreement to sell power to New York state from their proposed Empire Wind 2 offshore wind farm, citing rising costs and logistical challenges.
Recommended Reading
CNX, Appalachia Peers Defer Completions as NatGas Prices Languish
2024-04-25 - Henry Hub blues: CNX Resources and other Appalachia producers are slashing production and deferring well completions as natural gas spot prices hover near record lows.
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
For Sale, Again: Oily Northern Midland’s HighPeak Energy
2024-03-08 - The E&P is looking to hitch a ride on heated, renewed Permian Basin M&A.
E&P Highlights: Feb. 26, 2024
2024-02-26 - Here’s a roundup of the latest E&P headlines, including interest in some projects changing hands and new contract awards.
Gibson, SOGDC to Develop Oil, Gas Facilities at Industrial Park in Malaysia
2024-02-14 - Sabah Oil & Gas Development Corp. says its collaboration with Gibson Shipbrokers will unlock energy availability for domestic and international markets.