Texas businesses leading offshore wind development

The Bureau of Ocean and Energy Management announced on December 12 that after two companies expressed interest in leasing part of the Gulf of Mexico to produce wind power, the federal government would “move forward with the competitive lease process and proceed to hold the next offshore wind lease sale in the Gulf of Mexico in 2026.” 

Developing this resource could generate enormous amounts of electricity for the Texas grid, or be used to produce clean hydrogen. But while there are over 13,000 operating offshore wind turbines worldwide, only a few dozen are currently operational in the U.S. (but still enough to power 60,000 homes) and none in the Gulf of Mexico. However, over 4000 megawatts of new offshore wind capacity is currently under construction and far more is in the planning stage.

U.S. reliance on foreign countries for offshore wind components has led to logistical and supply chain constraints that are slowing down projects and driving up costs. Now, businesses in Texas are meeting this challenge. 

Seatrium AmFELS

Seatrium AmFELS, a shipbuilder located in Brownsville, Texas, is working on the first completely American built and operated, Jones Act-compliant wind turbine installation vessel (WTIV). Dubbed Charybdis, the boat is being constructed in Brownsville, Texas and is slated to be operational soon. Once completed, Charybdis will help build Dominion Energy’s 176 turbine Coastal Virginia Offshore Wind Project. 

Why is the Charybdis important?

The Merchant Marine Act of 1920, informally known as the Jones Act, says that only U.S.-flagged (owned, built and operated) vessels can legally transport cargo within the United States and its territorial waters. To install offshore wind turbines, companies need wind turbine installation vessels. These specialized boats sail to construction zones, lift themselves out of the water, and use large onboard cranes to lift wind turbine parts from their decks and put them in place. Currently, no Jones Act-compliant, U.S.-flagged, wind turbine installation vessels exist. 

As a consequence, companies often have to stage parts and ships overseas to avoid violating the Jones Act. For example, when Dominion Energy attempted to put up test turbines off the Virginia coast, the company had to ferry parts back and forth from Canada to avoid running afoul of the Jones Act, according to Spectrum News  As a Dominion spokesperson noted, “for 176 [wind turbines] that does not work.” In fact, a recent report by the National Renewable Energy Laboratory concludes that “over half of the existing pipeline [of offshore wind projects] is at risk of not being installed by 2030 because of limited port and vessel availability.”

Without the ability to scale up domestic offshore wind construction, the federal government’s 30 gigawatt offshore wind energy goal will not be met. Research has shown that to reach that benchmark by 2030, the U.S. will need to deploy “at least 2,100 wind turbines.” As maritime lawyer Charlie Papavizas told Spectrum, “to get to 2,100 turbines in the water, you have to do X number a day starting today…and [the offshore wind industry isn’t] doing any per day today.” 

The launch of Charybdis will therefore be an important step for Texas and the offshore wind industry. But Seatrium isn’t the only company helping Texas realize its potential for offshore wind. 

The Kiewit Corporation

The Kiewit Corporation is an Omaha, Nebraska-based construction company. It built the first American-made offshore wind substation in Ingleside, Texas, near Corpus Christi. In May, 2023, the substation departed Texas for the northeastern United States. It is now operational at the South Fork Wind Farm south of Rhode Island and east of Long Island, where it helps provide more than 132 megawatts of power per year to New York residents. 

What is an offshore substation?

Offshore substations are essential for harnessing the clean energy produced by wind turbines. In short, an offshore substation “collects and stabilizes the power generated by the turbines, preparing it for transmission to shore.” However, because each wind farm only needs one or two substations, it’s hard to convince U.S. businesses that substations provide them good business opportunities to build them.

Texas Oil Workers Move to Offshore Wind

As oil and gas companies face a rapidly changing competitive landscape, with renewable energy on the rise, some businesses — and individuals — have realized that they can apply their expertise in offshore drilling to offshore wind operations. Seatrium, for example, built oil rigs at its Brownsville shipyard for more than 30 years before building Charybdis. And NOV Inc., a global oil and gas engineering firm that employs about 6,600 Texans, drew up the designs for the vessel. 

Many of the skills learned by offshore oil workers are transferable to offshore wind, particularly in areas like technical and engineering expertise, marine operations, safety, project management, and electrical systems. Workers with backgrounds in mechanical or electrical engineering, offshore oil and gas, maritime logistics, and renewable energy can apply their knowledge in turbine maintenance, site management, and grid integration. Safety certifications, project coordination, and environmental monitoring are crucial for offshore wind operations, while skills in welding, fabrication, and construction are essential for building infrastructure. Additionally, expertise in remote diagnostics, data analysis, and preventive maintenance will support the efficient operation and growth of offshore wind farms.

The potential for Texas’ offshore wind industry is massive. To maximize that potential,  state legislators must do more to promote the growth of the industry. A study by the National Renewable Energy Laboratory found that a single offshore wind farm in the Gulf “could support approximately 4,470 jobs” while adding “$445 million in gross domestic product [just] during construction. More importantly, it would allow Texas to expand its use of clean, renewable energy in lieu of fossil fuels that pollute our air and make people sick. 

Recognizing the potential for offshore wind, in 2023, Texas State Rep. Janie Lopez introduced House Bill 4734 to study Texas’ “business advantages, economic climate, and workforce readiness” in order to attract offshore wind industry investment. While the bill passed the state House, it died in the Senate. 

Texas is known around the world for its offshore drilling expertise. Offshore wind requires much of the same infrastructure and know-how, so, Texans are poised to greatly benefit from offshore wind development. Texas should seize this opportunity and take the necessary steps to make Texas a national — and international — leader on offshore wind energy.