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Building South Fork Wind: An Offshore Wind Supply Chain Jobs Tour

Oceantic Network

In mid-May, Network staff had the opportunity to visit the first completed offshore wind project in the United States, South Fork Wind, which announced the completion of construction on March 15, 2024. South Fork Wind is only the beginning of a 115,000 MW at-scale clean energy transition that is beneficial to both to the environment, and the American industrial economy that builds it. The 12-turbine project generates 132 MW of clean electricity and delivers it to the Long Island grid, enough to power over 70,000 homes and jumpstart New York State’s march to its 9,000 MW offshore wind goal.

The project is also a test case for the potential offshore wind has to be America’s next great industry. Building the modestly-sized project required a supply chain that stretched across at least 19 states sparked nearly $1 billion in new investments from upstate New York and Connecticut to the Gulf Coast supporting it and other near-term projects. The Network has identified 173 supply chain contracts associated with the South Fork Wind project, ranging from engineering and survey work to vessel construction and operation. From those investments and contracts, the Network can track at least 2,000 Americans who worked in manufacturing and construction jobs alone that supported the project – a total that does not include the long-term operations and maintenance jobs created to support the project’s two-decade lifespan, or the hundreds of planning, development, or lower tier supply chain jobs. American unions are serving as the backbone of these projects and filling many of the jobs with locals who supply labor for port redevelopment, component manufacturing, turbine installation, and maintenance work.

As was the case with America’s first test project, Block Island Wind Farm, the Gulf of Mexico played an outsized role, leveraging its offshore construction expertise to give new opportunities to legacy oil and gas suppliers.

On May 10, industry leaders and government dignitaries, like U.S. House Majority Leader Steve Scalise and Congressman Troy A. Carter, Sr. (LA-02), came together in New Orleans for the launching of the first new-build SOV in the U.S., the ECO Edison. The $100 million vessel put 600 individuals to work at the Edison Chouest shipyard in Southern Louisiana and yielded a supply chain reaching 34 states. While constructed in the Gulf, the Edison will operate more than 1,500 miles away, safely housing and transporting workers during weeks-long deployments for Ørsted’s Northeastern projects, such as South Fork Wind and its under-construction big brother, the 704 MW Revolution Wind.

The May 2024 christening of ECO Edison, the first new-build SOV in the U.S., constructed at the Edison Chouest shipyard in Louisiana. (Courtesy: Edison Chouest)

Further west, Texas’ Gulf Copper retrofitted an existing barge that operator Crowley used to transport the turbine blades — as long as a football field — and massive nacelles from port to the South Fork installation site. In Corpus Christi, Texas, Kiewit Offshore Services manufactured the first American-made offshore wind substation with the help of 350 workers in the Gulf and in Kansas. Gulf operators like Otto Candies and Guice Offshore also brought vessels out of the Gulf to support installation activities. In the case of Otto Candies, their vessels were even retrofitted in the Gulf to better serve the offshore wind industry.

South Fork Wind also featured the first American-manufactured offshore wind components. Export cables, which carry power from the American-made offshore substation to shore, were manufactured near Charleston, South Carolina in Nexans’ new $200 million facility that employs 200 locally (and exports globally). Long Island’s Haugland Group put 100 to work building the onshore transmission system that linked the export cables from the shore to the grid, and Roman Stone provided the concrete mattresses that protect the cables. In western New York, Ljungström invested $10.7 million to revive an ailing steel mill and hired 200 more people to meet the demand from offshore wind. The facility provided the steel for Riggs Distler’s $40 million plant in the Port of Providence (ProvPort) where more than 100 trades workers manufactured huge internal steel cages and external platforms that allow workers to access the foundation and tower base.

Offshore wind’s need for port space and access is immense, and the development of South Fork Wind helped inject hundreds of millions in new investments into northeastern ports, such as Port Jefferson in New York where the Eco Edison will be stationed. To support installation activities, $310 million went into redeveloping the New London State Pier in Connecticut, which yielded an estimated 400 jobs and a world-class offshore wind marshalling port where towers, blades, and nacelles are housed as they await transit to the wind project. Now complete, the pier will support at least two more wind farm installations –– Revolution Wind and Sunrise Wind. In Rhode Island, ProvPort has been transformed into a vital hub for the industry by providing manufacturing, storage, and general operations services for the industry as it supports installation activities off New England. On the day the Network visited, the Cade Candies — a vessel out of Louisiana and retrofitted to work on offshore wind — was docked. This is a common occurrence at ProvPort where dozens of Gulf assets have already called.

Above: The substation at South Fork Wind, the first of its kind manufactured in the U.S. It was built in Corpus Christi, Texas by Kiewit Offshore Services.

Further down the bay, the Port of Davisville is undergoing its own $200 million redevelopment in part to support its role as an operations and maintenance hub for South Fork Wind and other projects. At the neighboring airport, HeliService USA has transported up to 180 workers per day by helicopter to perform installation and maintenance activities at northeast projects. By water, WindServe Marine and American Offshore Services are operating five Crew Transfer Vessels (CTVs) for project developer Ørsted’s northeastern projects, all manufactured at nearby Rhode Island shipyards Senesco Marine and Blount Boats; Senesco has on hundreds of workers to support manufacturing of these and other offshore wind vessels. Each of these companies are employing scores of workers who will be transporting turbine technicians and operators out to project sites for decades to come.

South Fork Wind provides a window into the economic opportunity offshore wind presents the nation. Just readying the U.S. to build this 12-turbine project sparked hundreds of millions in new investments and put at least 2,000 people to work in manufacturing and construction jobs. Harder to quantify are the hundreds that supported the project by performing engineering and survey work — such as Haley & Aldrich, Inspire Environmental, Keystone Engineering, or Woods Hole Group — or local supply businesses like Red Ironworks and Miller Marine, who provided critical construction support.

The U.S. market is now accelerating deployment with three projects, all multitudes larger than South Fork Wind –– the 704 MW Revolution Wind project that will heavily rely on the supply chain developed by South Fork Wind, the 800 MW Vineyard Wind 1, which is primarily based out of Massachusetts, and the 2,587 MW Coastal Virginia project. Many more projects are in the development pipeline as U.S. states have already collectively set goals for more than 115,000 MW of offshore wind.

Oceantic Network releases its U.S. Offshore Wind Quarterly Market Report in April, July, and October. Each report builds off our U.S. Offshore Wind Annual Market Report and provides key analysis of both federal and state government activities impacting the U.S. offshore wind industry. The quarterly reports ensure companies are informed on offshore wind industry developments affecting their business.

Notable milestones for the first three months of 2024 include Ørsted and Eversource’s completion of South Fork Wind project in March. Next up is Vineyard Wind, to be completed later this year, which also began delivering power to the grid. Meanwhile, two new projects, which are collectively triple the size of South Fork and Vineyard, were announced to begin installation this summer.

The report details important developments that affected the U.S. offshore wind industry in the first quarter of 2024, including: 

  • BOEM increased the total capacity approved for construction by over 30% as the U.S. more than quintupled its installed offshore wind capacity – from 42 MW to 242 MW. 
  • U.S. Forged Rings announced a new $700 million tower and forge facility to be located on the East Coast, an investment made purely based on the strength of the U.S. market. 
  • Another 4,000 MW of projects are expected to begin installation activities this summer. 
  • New IRS tax guidance will drive down costs for a range of offshore wind activities across the East Coast. 
  • Four new crew transfer vessels, the workhorse of the offshore wind industry, have launched in just the past three months.  
  • New offtake awards contain provisions supporting supply chain investments throughout the East Coast. 

For weekly U.S. offshore wind updates, subscribe to the Offshore Wind Insider newsletter.   

Key Learnings That are Helping to Grow Offshore Wind

With commercial-scale projects now spinning off the East Coast, the U.S. offshore wind industry is officially up-and-running.

Such development will soon make its way to new regions, such as the Gulf of Mexico, where a well-established manufacturing industry has already been hard at work creating the vessels and components necessary to build offshore wind in the U.S.

Last year, the Biden Administration auctioned the first offshore wind development rights in the Gulf, as Louisiana set ambitious goals to obtain 5 GW of power from offshore wind. These steps help to signal that the Gulf is ready for offshore wind.

The region is in an ideal position to serve as the engine of the offshore wind supply chain. Leaning on decades of offshore oil and gas expertise, the Gulf of Mexico is providing the knowledge and assets to build offshore in the U.S.

According to statistics compiled by Oceantic Network, “23% of contracts in the U.S. market are going to Gulf firms and approximately $1 billion in investments are flowing to Gulf shipyards and fabrication yards.”(Source: UNLOCKING THE GULF OF MEXICO’S OFFSHORE WIND ENERGY POTENTIAL An Examination of Existing Supply Chain Capabilities and Challenges, August 2023.)

One company helping to drive innovative, offshore wind manufacturing is Gulf Wind Technology (GWT), a leading wind turbine rotor technology specialist. GWT delivers technology-based solutions spanning design, testing and implementation of wind turbines to improve turbine performance and reliability. The New Orleans-based company has also built the Shell Gulf Wind Accelerator (SGWA) to share and develop knowledge, technology, industry presence, and capabilities. The accelerator’s primary focus is to increase renewable energy competitiveness to solve industry challenges and maintain long term successful ventures in offshore wind energy.

We spoke with James Martin, Chief Executive Officer of Gulf Wind Technology (GWT) about what’s happening in his company’s backyard.

Oceantic Network: How would you describe the current climate for offshore wind in the Gulf of Mexico? 

James Martin: We believe this industry has a strong future. The Louisiana Gulf Coast holds some of the most effective and experienced industrial offshore energy infrastructure in the country, which is key to a safe, efficient, and scalable launch for an offshore wind market. This experience, knowledge, and infrastructure can provide the necessary expertise to build offshore wind.

The greatest challenge and opportunity are to figure out how to harness lower wind speeds amid powerful hurricanes that are frequenting the Gulf region. These challenges may impact the cost of capital and erode industry confidence but are also generating opportunities to develop new technologies. GWT is positioning itself to solve this key challenge by designing a suite of technologies to improve turbine yield and performance.

If you’re attending 2024 IPF in New Orleans, April 22-25, don’t miss Gulf Wind Technology’s Meg Lidrbauch, Senior Loads Engineer, and other industry experts discuss steps the industry is taking to design turbines that can withstand the force of major hurricanes.

Oceantic Network: What are the greatest needs for the industry in this region? 

James Martin: The greatest need moving forward is to prioritize the stimulation of boundaryless collaboration programs that showcase what can be achieved with the right resources. Europe and the Northeastern U.S. are further ahead in their offshore wind development with some farms already producing electricity. Let’s work together to further fund technology development, generate step by step change, reduce risk, and scale best practices that lower offshore wind energy costs. We work in one of the most exciting industries. Collaborating to prioritize needs and structure is key to growing our industry.

Oceantic Network: What resources, tools, investments, or other steps do you feel would support the growth of offshore wind in the Gulf of Mexico if taken today?

James Martin: The offshore wind industry is maturing and starting to recognize challenges and lessons learned from market-driven, rapid product iterations. GWT is deeply rooted in advanced manufacturing-led design philosophies such as Lean and Six Sigma, including part of the team’s prior experience in automotive and aerospace composites. These applications focus on improving efficiency, time management and customer satisfaction, while also reducing variance. As an industry we must adapt these processes for better and more cost-effective turbine manufacturing.

We are starting to witness more open engagement by leaders across the value chain to utilize current strategies for quality operations and efficiencies. One critical next step is to unleash these experts to drive a balance of innovation and risk reduction that create advanced products, technologies, and processes and move the industry forward.

Oceantic Network: Given offshore wind is only beginning to leave its mark in this region, what advice do you have for companies looking to get involved in the Gulf of Mexico? 

James Martin: Offshore Wind is a game of “patient capital,” that will deliver over time. Engaging in the supply chain for both onshore and offshore wind is one of the critical entry points and one that Louisiana is doing well. The region has decades of experience running large energy infrastructure projects, including skilled employees and resources to solve problems associated with deploying and maintaining “steel in the water.” Any aspiring company looking to move into the industry will do well to engage with local firms and partner where appropriate. 

About Shell Gulf Wind Technology Accelerator

GWT has strategically partnered with Shell New Energies US LLC (Shell) to create the Shell Gulf Wind Technology Accelerator program. The collaboration includes deployment of novel technologies to develop, test and implement the first suite of optimized technical solutions for a Gulf of Mexico-specific wind turbine. The Shell Gulf Wind Technology Accelerator will be a key enabler for wind in the region, combining research and development of new technologies with the Gulf’s first technology-focused education and training facility for workforce development aimed at accelerating the Gulf of Mexico offshore wind learning curve.  

Guest article written by Marcus Lehmann, Co-Founder & CEO of CalWave

The U.S. offshore wind industry is installing steel in the water for the first time at a commercial scale. The first utility-scale U.S. offshore wind farm, South Fork Wind, is now fully commissioned and operational. Meanwhile, 15 miles off the coast of Martha’s Vineyard, Vineyard Wind has started delivering power to the grid. The first Jones Act Service and Operations Vessel (SOV), the ECO Edison, is fast approaching its first voyage. The first floating offshore wind leases have been awarded off the California coast and BOEM’s Gulf of Mexico region is preparing its second auction for offshore wind lease areas. These major developments paired with new tax credits from the Inflation Reduction Act are coming together to create a sea change across America.

While much attention has been paid to the growth of offshore wind, wave resources are showing a positive potential impact to the energy grid. Recent studies and reports from Stanford University (1), U.S. National Labs (2), Wave Energy Scotland (3), and EU Scores (4) are highlighting the technology, and economic and system-level benefits of combining floating offshore wind and wave systems.

Generating more renewable energy from our oceans holds incredible promise. According to the National Renewable Energy Laboratory (NREL), marine renewable energy has the potential to power 57% of U.S. electrical needs (5). That’s a lot more than the 12% of total energy demand produced by wind and solar in 2020.

A coordinated effort combining these resources off the U.S. coastline can lead to:

  • Complementary Power Resources: By sharing balance-of-system infrastructure with offshore wind, wave energy converters (WECs) can boost the capacity factors of offshore projects without significantly increasing costs. This optimum usage of the seabed will enable a higher production of energy per square mile. Ocean swells form from the wind blowing across the ocean’s surface. This form of energy can carry hundreds or even thousands of miles across the open ocean. By the time those swells approach land, their strength is no longer impacted by wind speed. If an offshore wind farm is not producing at capacity, wave energy can fill the gap using the same infrastructure.
  • New Laws Opening Doors: Marine energy technologies may be permitted through the same leasing mechanisms as offshore wind. There is not yet a clear path for permitting marine energy projects, but new state laws in both California and New Jersey may help pave the way not only for state regulatory agencies, but also for the Bureau of Ocean Energy Management (BOEM).
  • Cost Savings: Marine renewables that are co-located with offshore wind will do more than just support America’s net-zero targets. They may also lead to significant cost savings for storage and transmission onshore. According to the Pacific Northwest National Laboratory (PNNL), the complementary generation profile of marine renewable energy creates an opportunity to reduce the need for energy storage technologies, thus reducing overall system costs.
  • Economic Benefits for a Competitive Edge: Wind and wave energy farms have the potential to create local jobs, enhance local economic development, and increase supply chain demand. Fixed offshore wind (industrialized) and floating offshore wind (industrializing) may also pave the way for quicker learnings as wave energy technologies scale up. By implementing lessons learned from offshore wind and floating platforms, companies can gain an edge in the industrialization of wave energy technologies.
  • A Versatile Option: Wave energy technologies are more versatile than offshore wind turbines and can often go where offshore wind cannot. For example, technology from California-based company CalWave Inc. operates submerged and does not require specialized vessels. This benefit gives developers the flexibility to deploy systems closer to shore than would be possible for offshore wind turbines, reducing installation costs.

To meet energy demands, the U.S. and other countries will rely on a portfolio of energy options, including a combined effort of wind and wave energy. The offshore wind industry can absorb the benefits of this deployment and the commercialization of the wave energy industry.

In the U.S. today, Oregon State University-based PacWave is preparing to deploy the first grid-connected wave energy generation system in US history. The nonprofit organization is a newly Department of Energy (DOE)-funded, pre-permitted, grid-connected wave energy test site seven miles off the central Oregon coast.

Diverse energy sources are needed to address power issues across the world. Wave energy is one part of the solution bringing a new source of offshore renewable energy. Utility-scale wave energy deployments are on the horizon, and the offshore wind industry can build a case to partner with wave energy businesses to extend power resources, manage risk during low wind periods and build economies of scale for installation, operations and transmission

New at IPF this year, Oceantic Network is excited to launch a new Ocean Renewables track to further discussion about other forms of ocean renewable energy. View the complete agenda here.

About the Author:

Marcus Lehmann founded CalWave in 2014 and serves as the CEO. Marcus was accepted into the first cohort of Cyclotron Road, a 2-year fellowship and incubator for entrepreneurial scientists working in clean energy at the Lawrence Berkeley National Laboratory (LBNL) that allowed the formation of the founding team. Marcus is a co-inventor of several key US and international patents and has managed CalWave’s industry collaborations and relationships. In 2016, he was named in the Forbes 30 Under 30 List for Energy. Marcus has previous industry experience with the major European utility E.ON and has worked for Siemens and BMW in the past. Marcus holds a M.Sc. in Mechanical Engineering from the Technical University Munich, an honors degree in Technology Management, and a Ph.D. in Systems Engineering from Technical University Hamburg-Harburg.

Sources:

1.“Combining Offshore Wind and Wave Energy farms to facilitate Grid Integration of Variable Resources,” Eric Stoutenburg, University of Stanford, April 23, 2012

2.“Understanding the Grid Value Proposition of Marine Renewable Energy,” PNNL, 2024

3.“Shared Floating Wind and Wave Projects offer 12% Combined LCOE Reduction to UK,” Wave Energy Scotland, May 11, 2023

4.“Co-location of Offshore Wind, Wave, and Floating Solar Could Lead to Unprecedented LCOE Reduction, Report Finds.” Amir Garanovic, May 11, 2022

5.“Marine Energy in the United States: An Overview of Opportunities,” Levi Kilcher, Michelle Fogarty, and Michael Lawson, National Renewable Energy Laboratory, February 2021

Oceantic Network’s annual Leadership 100 Summit  gathers U.S. offshore wind leaders for an intimate working meeting to identify the industry’s pressing, shared challenges and develop action plans to continue growing a robust U.S. offshore wind industry and supply chain.

In April, the Network released an executive summary and meeting notes from the Leadership 100 Summit in November 2023, sharing much of the valuable insight gained by attendees with the broader offshore wind industry. Download the report below!

Key findings include:

  • The potential to foster greater supply chain investments and advancement by encouraging greater project viability in the procurement structure and by decoupling projects from port and transmission infrastructure development, activities which developers may be ill-suited to execute
  • The need to build a greater understanding of the downstream supply chain costs and increased market risk that comes from continually increasing turbine sizes and lead to less efficient development
  • The need for a greater industry-wide collaborative communications strategy to combat misinformation and increase public support for offshore wind
  • Data’s ability to strengthen the industry through building public support, reducing pre-development costs, or helping make more environmentally sound regulatory decisions

Here’s why Burns & McDonnell remains confident in the industry despite recent hiccups.

A little more than seven years ago, Burns & McDonnell had no involvement in the offshore wind industry. Today, the engineering firm is involved in roughly 80% of U.S. projects across a range of activities — and it’s not slowing down anytime soon.

Heading up the company’s now well-established role in this new industry is Offshore Wind Director Tony Appleton, who recently spoke with Oceantic Network about the ups and downs of the industry over the past year.

While 2023 saw many successes for the U.S. offshore wind industry, cost overruns due to inflation and supply chain constraints led to several project cancellations. Despite some rough waters, states and many private companies remain confident in the industry’s future success.

Tony shared that Burns & McDonnell has run into its fair share of challenges amid industry shakeups. As a result, the company has looked even more closely at the work it takes on, the reasons behind it, and the risks attached to some of those challenges.

“As the offshore wind industry evolves in the U.S., we continue to carefully analyze the developing federal and state requirements. This critical observation doesn’t hinder our progress in pursuing project opportunities, but it does necessitate more comprehensive risk reviews. By examining the work we undertake, the underlying motives, and the associated risks, we are positioning ourselves to navigate the complexities of this developing industry with informed precision.”

Here’s what else he had to say about the state of offshore wind today.

Oceantic Network: In many ways, 2023 was a difficult year for the offshore wind industry — even though we had a lot of successes. But such hardships were not limited to the U.S. What other factors impacted the industry globally?

Appleton: Looking first at the global supply chains, several issues affected them. One is obviously the post-Covid inflation. You’ve then got various wars taking place, particularly in Ukraine, that have affected energy costs and inflation. So, there’s a couple of issues there, but not necessarily ones that we can work to solve.

Oceantic Network: What are your thoughts on the state of the global market for offshore wind and other renewable energy specifically?

Appleton: If you look at the global renewables industry, the desire for offshore wind is apparent. This has caused an almost incomprehensibly large demand on the supply chain. Countries can react in a couple of different ways, one of which is to build numerous new plants and numerous new facilities. That could be a short-term solution but may pose a long-term problem. As offshore wind reaches broader adaption, the demand will slow down making it difficult to occupy those factories long-term That is one reason it’s important that countries work to adopt a balanced approach to their supply chain development.

Oceantic Network: What issues did you see that were specific to the U.S. last year?

Appleton: There’s a uniqueness to the U.S. as every project is different. Every project is the first of its kind. Every single one has a different capacity, is done a different way and has different requirements. Given that the industry is still evolving in the US, issues are being raised in many areas. For example, if you want to permit an offshore wind project in Europe, maybe half a dozen permits are required compared to the US where permitting these types of projects can require more than a hundred permits. In addition to a strenuous permitting system, the U.S. also has competition between the states given that in many cases, the states aren’t working together.

Oceantic Network: What do you see being done to alleviate these concerns?

Appleton: We’re starting to see the beginnings of collaboration. You’re starting to see the states talking to each other and putting thought into how offshore wind adoption can be done together. This is an important consideration because if it is done collectively, there will be more consistency for individual projects and across the supply chain. That’s what three New England states are looking at with their procurement processes. They’re moving from local content to regional content. If they follow through on this plan, it can be a huge step forward, and can serve as an example for other parts of the U.S. This concept of clustering can be a huge asset to resolving some of the industry’s supply chain issues.

Oceantic Network: Does standardization play a role here?

Appleton: Yes, another thing that can be done is to start doing standardized projects. Rather than having a different capacity for each project, there should be an aim for certain consistencies. Another area with potential for standardization is the race for bigger turbines. The industry is not giving itself time to catch up. Turbine manufacturers do not have adequate time to test new models before bringing them to market. Recently, we have seen some of the turbine manufacturers slow the development of newer, larger turbines. I see that as quite positive because it gives the supply chain time to catch up. If the U.S. were to build numerous wind farms using 15 MW turbines, this standardized way of doing things could potentially drive down costs, similar to what we see happening with wind farm projects in Europe.

Oceantic Network: Could share some of your experiences with Burns & McDonnell over the past year in the U.S. in comparison to your operations elsewhere?

Appleton: I’ve seen a lot of growth in the U.S. Industry and feel there is a clearer understanding of what being part of the global offshore wind industry means rather than just a U.S.-centric industry. Offshore wind is very reliant on the global supply chain as it can’t all be managed domestically in any country (with maybe the exception being China). That’s something perhaps a little bit different from many other industries, certainly for us in our work. We’ve had to educate ourselves in what it means to rely on the global supply chain to help us be involved in the industry.

Oceantic Network: You said your appetite for offshore wind hasn’t changed. What would you say are the positive proof points you could point to that indicate the industry’s future success?

Appleton: The country is preparing for offshore wind, especially with the lofty goals set forth to be achieved. While some projects have slowed or been canceled, what we are seeing in the background are the many upgrades being made by utility companies in places beyond Long Island and Connecticut. The grid is seeing upgrades all over and much of that is due to the acknowledgment that offshore wind is not just a concept but a reality.

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