Here's What's Going Wrong in the US Offshore Wind Industry

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.4 • 1.6K Ratings

🗓️ 22 November 2023

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

The effort to decarbonize the US electricity grid involves a range of technologies and power sources. Solar is part of the solution, nuclear may also be a component. Battery storage is key. And so is wind — both onshore and offshore. While there are challenges throughout the process, the offshore wind industry in particular has seen a number of setbacks lately, with the Danish company Orsted having recently made headlines for pulling out of a project slated to be built off the coast of New Jersey. Challenges range from surging commodity costs to a scarcity of vessels, the bidding process for deals, and of course, the surge in interest rates over the last two years. On this episode, we speak with Chelsea Jean-Michel, an offshore wind industry analyst at BloombergNEF, to get a clear breakdown of the problems, the degree to which these challenges threaten the larger trajectory of the industry, and the efforts to decarbonize the grid.

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0:00.0	On December 4th and 5th, against the backdrop of the United Nations Climate Change Conference,
0:05.2	Bloomberg Green will convene the foremost leaders in business, finance, policy, academia,
0:10.3	and NGOs for candid conversations focused on creating solutions to support
0:14.9	the goals set forth at COP28. Join our community of global influencers and
0:19.5	problem solvers in Dubai to build connections, inspire innovation and challenge the status quo in the
0:25.1	battle against climate change. Register at Bloomberg Live.com slash B Green Radio. Hello and welcome to another episode of the Odd Lots Podcast I'm
0:45.0	I'm Joe Wiesenthal.
0:46.0	And I'm Tracy Allaway.
0:47.0	Tracy, I have to say there are a lot of exciting things happening in energy,
0:52.0	decarbonization, electrification of the grid things we've talked
0:56.4	about recently with people like Jigger Shaw and so forth but I have to say I
1:00.5	keep seeing negative headlines about wind.
1:03.4	Oh my gosh you know just before we came in studio to record this I was taking a look at
1:07.8	the S&P Global Clean Energy Index yeah it's down 30% this year more than 30% this year and a lot of that is thanks to what's been going on in wind
1:18.2	Yeah, in fact if you look at Orstead which I think is the world's biggest provider of offshore wind farms, it's down 50% year to date.
1:27.0	Yeah, so we are recording this November 15th. I think just earlier in the week two top Orsted executives departed the company.
1:35.8	I think there was a project off the shore of I think New Jersey that they that recently
1:41.3	the plug was pulled on and it just seems that every story
1:45.5	everywhere around the world with the exception maybe of China it seems to be
1:50.9	something seems to be wrong,
1:52.9	whether it's the math doesn't pencil out
1:55.3	on the actual projects themselves.
	...

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