New Jersey offshore wind project runs into supply chain issues

Sept. 7, 2024
Leading Light Wind developers seek “pause” as they look for new turbine supplier.

Developers of the Leading Light Wind project offshore New Jersey have requested a “pause” in the project from the state’s Board of Public Utilities as the project confronts supply chain issues.

As planned, the Leading Light Wind project would consist of an offshore wind farm with up to 100 turbines, some 40 miles off Long Beach Island. It is being developed by Chicago-based Invenergy and New York-based energyRE. 

According to a report from the Associated Press, the project developers seek to delay the project through December 20 as they look to secure a manufacturer for turbine blades for the project. They are reportedly currently without a supplier after one of its potential turbine suppliers, GE Vernova, scrapped plans for an 18-MW turbine and its second choice, Siemens Gamesa, increased the price of its offering. A turbine made by manufacturer Vestas has reportedly been deemed unsuitable for the project. 

As quoted by the AP, Wes Jacobs, the project director and vice president of Offshore Wind Development at Invenergy, said it is seeking to hit the pause button “in light of industry-wide shifts in market conditions.” It seeks more time for discussions with the board and supply chain partners, he said.

Leading Light was one of two projects chosen in January by the state utilities board. New Jersey has set ambitious goals to become the East Coast hub of the offshore wind industry. It built a manufacturing facility for wind turbine components in the southern part of the state to help achieve that aim.

In the meantime, project developers say they will continue to move forward with developmental activities such as their ongoing survey program and other pre-construction plans.

The delay comes amidst a growing number of challenges for the New Jersey offshore wind market. Last year, Ørsted cancelled two offshore wind farms planned off the New Jersey coast, saying they were no longer financially feasible to build. Atlantic Shores, another project with preliminary approval in New Jersey, is seeking to rebid the financial terms of its project.

 

 

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