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American Press
25-04-2025
- Business
- American Press
Powering the future: La. joins wind energy market
Three of Deepwater Wind's five turbines stand in the water off Block Island, R.I., the nation's first offshore wind farm. (Associated Press Archives) Louisiana is emerging in the offshore wind energy market, but is facing economic uncertainty following federal actions. Two Louisiana offshore wind (OSW) developments — Dow LA Gulf Wind and Cajun Wind, LLC — have been secured and are estimated to collectively generate $40 million in lifetime revenue. The Cajun Wind project alone spans nearly 60,000 acres in offshore Cameron Parish and is projected to generate $29 million. The Dow LA Gulf Wind development will take up 6,162 acres in the Terrebonne and Lafourche parish territories. These early initiatives are expected to drive economic growth in coastal parishes while also diversifying the state's energy portfolio. The Louisiana Department of Energy and Natural Resources (DENR) has taken steps to develop the OSW sector with the Louisiana Offshore Wind Roadmap Advisory Committee. Last year, the committee was formed to create a comprehensive offshore wind energy integration plan. The committee's third meeting was in March, where they gave presentations on the national OSW supply chain and updates on the two completed reports: Overview of Louisiana Energy Environment and Overview of Energy Markets. Ron Norman, senior partner of energy and utilities for PA Consulting Group, is the lead consultant for the energy markets committee workgroup. He said during his update that the energy load-growth across Louisiana is 'robust.' 'We've got significant industrial power demand, which is often compatible with large-scale power generation projects,' he said. Additionally, Louisiana touts shallow-water depth, preexisting port infrastructure and an existing trained offshore workforce. Hurdles the state will face range from low wind quality in the Gulf to the need for transmission investments to transport power from the Gulf to power centers. Offshore wind demand and supply chain OSW is an industry still in the early stages of development. But the economic benefits are already far-reaching. Sam Salustro, vice president of strategic communication at Oceantic Network — a national organization working to build out the OSW supply chain — discussed the national outlook on OSW. As of March, about 60 gigawatts (GW) of OSW have been leased by the federal government. These facilities are primarily located on the East Coast, but are also being developed on the West Coast and on the Gulf Coast. Nationally, there is one complete OSW project and five in active installation. Just these few projects have resulted in $25.5 billion in investments — ports, vessels, factories — for the OSW supply chain that spans 40 states. The demand for OSW has been driven by the states through utility or state-mandated OSW procurement policies, with several states passing amendments, proposals and initiatives to prioritize alternative energy sources, resulting in a demand of 116 GW. 'While the federal government is generally the supply lever of the market, the states are the demand lever,' he said. This trend is close to home. Last November, Louisiana voters passed an amendment to dedicate any future federal funds the state receives from offshore alternative energy production to the Coastal Protection and Restoration Fund, a constitutionally protected fund for coastal protection projects and programs. This aligns with a nationally trending preference for renewable energy. This marketwide demand for clean energy has originated from the private sector by consumer preferences, improved technology, tax incentives, declining capital costs and clean energy standards, Norman said. States are driving this market forward to address energy demand issues. With the rise of data centers — networked computer servers that are used for remote storage, processing and data distribution — that are expected to eat up to 11.7 percent of U.S. power in 2030, states are looking to secure alternative energy sources quickly. The United States will need 50 percent more power production by 2035. These projections have created a 'tailwind' for clean energy discussions. 'There's a real rush to figure out how to meet this demand. … There's always this underlying preference from the data center owners and developers for clean energy,' he said. Salustro called it a 'conversation about how to fill the looming energy gaps and the fact is that offshore wind is, frankly, a shovel-ready industry at this point.' He continued by explaining that OSW is desirable because it has high capacity, and consequently, a 'strong and reliable grid' that is 'essentially as close to a base-level power source as we're going to get in renewable energy' — factors that are compatible with high-load facilities like data centers. Additionally, OSW results in fuel and ratepayer bill savings, he said. The national expansion of OSW is dependent on the Gulf states' industry expertise. 'Up in the Northeast, they just do not have the expertise to build this industry.' Twenty-four percent of the OSW supply chain, or about 500 contracts, are from the South and Gulf Coast — Alabama, Florida, Louisiana, Mississippi and Texas. Oceanic has tracked $2 billion in regional investments to support the supply chain, primarily in Gulf shipyards and steel fabrication; Louisiana has three shipyards and two steel fabrication and supply facilities. Andy Logan, head of operations and people at Xdous Group and lead consultant for the supply chain and workforce committee workgroup, said that while there are over 120 companies in the Louisiana Offshore Wind Supplier Database, recent studies have found that this could increase to over 450. OSW also bolsters local workforces by creating new construction and operations jobs. Oceantic reported that Vineyard Wind 1, an OFW facility in Massachusetts, created about 2,800 construction jobs (about half of which were local) and 80-plus long-term operations jobs. The Overview of Louisiana Energy Environment study also determined that there are currently 60,000 Louisiana workers employed in industries adjacent to offshore wind. 'There are hundreds of companies and thousands of workers who stand to benefit from the expansion of the offshore energy industry,' Logan said. Federal action Despite national interest, the trajectory of OSW could be stunted at the federal level. On his first day in office, President Donald Trump signed an executive order to temporarily halt offshore wind lease sales and pause the issuance of permits for onshore and offshore wind projects in federal waters to assess the wind leasing and permitting practices. These federal actions against OSW have continued throughout the first months of his term. The Associated Press reported this month that his administration revoked a Clean Air Permit for an offshore wind project off the coast of New Jersey in March; On April 16, he ordered that the construction of the New York OSW project, Empire Wind, be stopped. The executive actions regarding OSW are points of concern for the industry, Salustro said. Projects to produce about 30,000 GW of energy have been mapped out to 2033. The supply chain has been built out to meet an accelerating and nationally supported industry, but the pause on permits could lead to a 'loss of economic potential.' 'That threatens to strand assets that have been built both down in Louisiana and up in the Northwest to support the industry,' he explained. 'The loss of business pipeline is impacting states like Louisiana, Texas, just as much as its impacting Massachusetts and New York.' Louisiana's state-leased projects will not be directly affected by the federal permitting freeze, but projects could face challenges. Public information and meeting recordings are available on 'Clearly, that creates a headwind not just for the development of offshore wind off the coast of Louisiana, but for projects across the US,' Norman added later. 'Therefore, the supply chain as it may integrate with Louisiana and other regions, is complicated by the slowdown the industry is facing.'
Forbes
23-03-2025
- Business
- Forbes
If Trump Destroys Inflation Reduction Act, Economic Fallout May Come
Block Island, R.I: Deepwater Wind installing the first offshore wind farm at Block Island, Rhode ... More Island, August 14, 2016. (Photo by Mark Harrington/Newsday RM via Getty Images) Louisiana may be known as an oil and gas state, but it is now getting its feet wet by trying to build offshore wind energy developments in the Gulf of Mexico. Even though the deal has bipartisan support, the Trump Administration is trying to block all such wind projects in federal waters. President Trump signed an executive order that stopped all offshore wind energy projects. Trump doesn't believe in climate change and thinks fossil fuels are the way to go. What makes him tick? The administration said this strategy will lower energy costs, create more jobs, and meet the growing energy demand. However, look to ruby-red Louisiana, which views offshore wind as a job creator and a vehicle to reduce electricity price volatility. 'We are at an inflection point now on the way energy economics works,' says Fox Swim, a senior solar researcher for Aurora Solar, in a Zoom interview. 'This administration is willing to break the law and norms. It is willing to inflict economic damage on the rest of the country to fulfill its vision. The renewable energy industry must lean hard on state governments. If states value stability in our grid and renewable energies, then these jurisdictions must do the right thing.' The Inflation Reduction Act (IRA) is in danger now. It passed in 2022, creating green energy programs nationwide. But if the projects die, economic stimulation does as well. If the Trump Administration gets rid of the IRA, then Energy Innovation said it would cost consumers $32 billion in energy bills, while gross domestic product falls by $190 billion by 2035. We lose hundreds of thousands of jobs too. Trump cannot simply eliminate the law, but he can gradually dismantle it. He could slow the rollout or make fossil fuel investments more valuable than those in renewable energy. So even if the law is still on the books, it might not have much of an effect. Swim points to the Endangerment Finding, the scientific and legal basis for regulating greenhouse gases that cause climate change. In 2009, the U.S. Environmental Protection Agency started overseeing those emissions under the Clean Air Act. She thinks the administration will rewrite the law to say, 'Climate is not a problem.' She also believes the administration will revise the IRA to say which technologies qualify for tax credits. So, here's the scoop: Aurora's new survey revealed that 57% of business owners favor keeping the IRA, while only 29% want it gone. And guess what? A whopping 78% of business owners want to make the most of their IRA benefits. Now, let's talk about homeowners. Awareness of the IRA has skyrocketed from 51% in 2024 to a colossal 77% in 2025. Interestingly, 48% of installers believe that a reduction in funding from the IRA would negatively impact their business. 'Joe Biden created the IRA, and he fundamentally shifted the way we do clean energy in the U.S. Trump could just as easily shift the needle in the opposite direction,' says Swim. 'The government uses subsidies to promote technologies and industrial policy. The subsidies must exist to bring renewables to the level where they can compete with extremely subsidized petroleum industries.' GULF OF MEXICO - JUNE 25: The Transocean Discoverer Enterprise drillship burns off gas collected at ... More the BP Deepwater Horizon oil spill in the Gulf of Mexico off the coast of Louisiana on June 25, 2010. An approaching tropical disturbance may force collecting operations involving ships and other siphoning equipment to be temporarily halted. This may cause oil to flow unchecked from the well until the weather improves and siphoning operations can be restored. (Photo by) New York State planned to transform one of its largest fossil fuel plants into a renewable energy powerhouse. It would've used offshore wind energy, battery storage, and geothermal power to make clean energy. But guess what? Those plans are on hold because of Trump's executive order that put a stop to all offshore wind projects. This deal would've been a game-changer, providing power to 2 million homes and generating a massive 2.6 gigawatts of electricity. The Trump administration has started undoing over 30 environmental rules that were put in place by the previous administration. They're eliminating caps on power plant emissions, reducing protections for rivers and streams, and making it easier for cars to pollute. The president has given his EPA the green light to keep some coal plants running. That's on top of the plans to weaken rules for monitoring pollution from power plants. For instance, he's targeting the mercury rules and those that regulate coal ash, which is the waste left behind when coal is burned and caused widespread damage in the Tennessee Valley Authority's areas. Trump has also called the IRA the 'Green New Scam.' Trump has also withdrawn from the voluntary Paris Agreement that tries to limit temperature increases to 3.5 degrees Fahrenheit by mid century. 'We're not going to do the wind thing,' Trump told rallygoers. 'Big, ugly windmills, they ruin your neighborhood.' He later wrote on social media, 'After years of being held captive by Environmental Extremists, Lunatics, Radicals, and Thugs, allowing other Countries, in particular China, to gain tremendous Economic advantage over us by opening up hundreds of all Coal Fire Power Plants, I am authorizing my Administration to immediately begin producing Energy with BEAUTIFUL, CLEAN COAL.' Have we become immune to this language? The madman theory applies to the idea that foreign foes shouldn't tempt a leader because they are too unpredictable. Trump, though, is driven by vindictiveness and the desire to undo the successes of his predecessors, and not by the greater good. WASHINGTON, DC - AUGUST 12: Rep. Jamie Raskin (D-MD) (L) and Rep. Pramila Jayapal (D-WA) arrive for ... More a news conference with fellow members of the House Progressive Caucus ahead of the vote on the Inflation Reduction Act of 2022 outside the U.S. Capitol on August 12, 2022 in Washington, DC. Despite not achieving everything the House liberals wanted, the $737 billion act will focus on slowing climate change, lower health care costs, and creating clean energy jobs by enacting a 15% corporate minimum tax, and a 1% fee on stock buybacks, and enhancing IRS enforcement. (Photo by) The real checks and balances might not come from the legislative branch, which seems scared of him, but from American businesses, which might actually have more power than the president. Market powers trump presidential levers. Companies have gone beyond just focusing on shareholders. They now include communities and employees in their mission. This strategy is called the 'triple bottom line,' which considers the planet, people, and profits. Ignoring this can hurt a company's well-being. Cisco, Oracle, and IBM are among the many companies that are leading the sustainability challenge. America's energy picture illustrates the point: Coal has fallen from 50% of the electricity mix in 2008 to 16% today, while renewables keep blossoming, now at 20%. That's a market choice. No U.S. utility company has any plans to build coal-fired power, including the two biggest, American Electric Power and Souther Company, which are trying to ditch their coal plants. Aurora's Swim worries that corporations will reverse their net-zero goals, although that is a gamble—one that could bring lawsuits, lose customers, and damage their brands. That said, listed a series of "backtracking companies:" Goldman Sachs, Wells Fargo, Citi Bank, Bank of America, Morgan Stanley, and JPMorgan pulled out of a industry climate alliance. Meanwhile, Blackrock withdrew from the Net-Zero Asset Managers, and American Airlines removed a reference to its "urgent" climate actions. "Trump is here for four years," says Swim. "There will be a midterm, and political gravity will catch up with his actions. But this administration is willing to inflict economic damage —even incurring a recession—to remake the country into the vision it has.' Witness the tariffs and the whirlwind they have taken this country. "There are strong conservative and economic cases for renewables," she continues. "Supporters must push legislators to say these policies make sense for your state and bring tangible benefits to your community. Maybe their leaders don't care about climate change, but they do care about power outages and recovery costs.' If Trump destroys the IRA, economic fallout could follow. While the president may be bound to the past and blinded to the country's future promise, he knows how to read the political landscape—the best hope of staving off a free fall and even more environmental problems. Renewables Will Best Fossil Fuels Over Time Trump's Energy Agenda And Its Economic Impact
