TotalEnergies, Simply Blue Launch Joint Venture
By Malcolm Ramsay
Seven major offshore wind auctions in the U.S. over the next three years are expected to drive unprecedented breakbulk demand, as energy companies rapidly accelerate funding in offshore construction.
French energy major TotalEnergies is the latest to enter the fray, launching a joint venture with early-stage marine project developer Simply Blue Group to tap into a range of deepwater opportunities and construct a raft of new wind farms.
Ornela Boré, spokesperson for TotalEnergies told Breakbulk that the tie-up is part of the groups ambition “to install 100 gigawatts of global renewable power generation by 2030” and notes that the Biden administration’s goal to produce 30 gigawatts from U.S. offshore wind by 2030 has “created much needed certainty to further invest in the U.S. market” as well as spurring further competition.
Go Big and Go Deep
The new venture, TotalEnergies SBE U.S., plans to build on Simply Blue Group’s experience and skills with floating installation, allowing the partners to tackle deeper waters and locations that were previously too challenging.
Stéphane Michel, president, gas, renewables and power at TotalEnergies, said the partners are “convinced of the large potential” for floating offshore wind to provide U.S. coasts with renewable electricity, and that both teams are “committed to contribute our extensive expertise in offshore projects to make it happen.”
This commitment is part of a growing race in both size and scope of projects, as developers and breakbulk companies compete to deliver ever larger and more ambitious wind farms and achieve greater efficiencies and profitability. Stephanie McClellan, chief of strategy at TotalEnergies SBE U.S., notes that companies will “need to go big and go deep” if they want to outcompete rivals in the U.S. offshore sector.
Calling the floating wind sector the “future and next frontier” in the development of U.S. offshore wind, Sam Roch-Perks, CEO of Simply Blue, explains that “almost two-thirds of U.S. offshore wind resources are found in deeper waters that require floating wind platforms.”
The White House estimates that deepwater wind farms may provide as much as 35 gigawatts of development potential by 2040.
Ambitious Roadmap
The U.S. Bureau of Ocean Energy Management, or BOEM, has announced plans to auction seven new offshore wind leases by 2025, with four of these expected to be sold by the end of next year.
Outlining an "ambitious roadmap" to accelerate the transition to a cleaner energy future, Interior Secretary Deb Haaland said: “This timetable provides two crucial ingredients for success: increased certainty and transparency. Together, we will meet our clean energy goals while addressing the needs of other ocean users and potentially impacted communities. We have big goals to achieve a clean energy economy and Interior is meeting the moment.”
Under the proposals, BOEM will hold offshore lease sales in seven key regions: Gulf of Maine, Gulf of Mexico, North and Central California, Oregon, New York Bight, Central Atlantic, and Carolina Long Bay.
“We are working to facilitate a pipeline of projects that will establish confidence for the offshore wind industry,” said Amanda Lefton, director of BOEM. “At the same time, we want to reduce potential conflicts as much as we can while meeting the administration’s goal to deploy 30 GW of offshore wind by 2030. This means we will engage early and often with all stakeholders prior to identifying any new Wind Energy Areas.”
Breakbulk Hubs
To meet demand for breakbulk handling associated with outsized wind power components – from turbine blades to nacelles and foundations – developers in the U.S. are also planning a range of new breakbulk ports and hubs.
A public-private partnership between the state of Connecticut and wind developers Ørsted and Eversource is expected to drive investment of US$157 million to transform State Pier in New London into a modern heavy-lift capable port facility. The developers have also announced US$70 million for port improvements across the state of New York.
In Massachusetts, joint venture developer Vineyard Wind has progressed comprehensive plans for breakbulk upgrades in the state, partnering with Semco Maritime to create “a world class service and maintenance hub” in New Bedford. Steen Brødbæk, CEO of Semco Maritime, called the development “an important milestone” that would establish “Semco Maritime as the first full scope offshore wind maintenance provider” in the country.
The development is contingent on the proposed Commonwealth Wind project, which envisions 1.2 gigawatts of new offshore capacity in an area 22 miles south of Martha’s Vineyard. This news follows the announcement last month, that Vineyard will work with engineering group Crowley Maritime to transform Salem Harbor into the state’s second major offshore wind port.
“Our Commonwealth Wind proposal has benefits for people across the state, we know that New Bedford will continue to be a critical hub for the industry for decades to come. This partnership builds on the work we’ve done in the city and brings new direct investment and additional good paying, long-term jobs for local residents,” said Lars T. Pedersen, CEO of Vineyard Wind.
