Shell's entrance could transform the US offshore wind industry
Last month's blockbuster Bureau of Ocean Energy Management (BOEM) triple auction in Massachusetts had significant implications for the wider US offshore wind industry.
December also witnessed the purchase of US Wind’s lease of its New Jersey Offshore Wind Energy Area by Royal Dutch Shell and EDF Renewables, making this joint venture (JV) team eligible to submit a proposal to the 1,100MW solicitation from the state’s Board of Public Utilities.
These are indications the US offshore wind is an energy sector with vast growth potential due to resource availability, lower costs, committed state policies and federal support.
It is also an indication of the strength of the companies looking to invest in the US offshore wind market.
When a market leader like Shell indicates its interest publicly, it shifts offshore wind from a peripheral to a major investment opportunity.
US offshore wind needs the US oil & gas (O&G) industry expertise to innovate and continue to drive down costs.
The European model and their practices will not work exactly the same way in the US. There are different constraints and obstacles, which US O&G expertise can help identify solutions and offer innovations.
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