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PARETO
Six U.S. governors sent a letter to President Biden last week urging more support for the offshore wind industry, citing growing concerns that rising costs are jeopardizing multibillion-dollar projects planned for the northeast Atlantic states.
Rising material costs, high interest rates and The problems in the supply chain have affected project developers, including Shell (SHELL), Orsted (OTCPK:DNNGY), Equinor (EQ NO), BP (BP) and Avangrid (AGR) Unpleasant cancel or renegotiate energy contracts for the first U.S. commercial-scale wind farms, expected to become operational within the next five years.
Companies say they are committed to the projects, which have a combined capacity of more than 6,000 MW, but the need to sign new contracts and secure specialized equipment in demand around the world threatens serious delays.
“Without federal action, U.S. offshore wind deployment is at serious risk of stagnating as state taxpayers may not be able to bear these significant new costs alone,” the governors said in the letter.
Failed projects would threaten state deployment goals as well as Biden’s bid to get 30 GW of offshore wind production capacity installed by the end of this decade — a crucial part of the president’s broader goal of decarbonizing the U.S. economy by 2050 .
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