Floating Offshore Wind Supply Chain Constraints and Opportunities

Abstract Offshore wind power has become a priority in the United States because it has the potential to unlock substantial resources to deliver both economic and environmental benefits toward a net-zero emissions goal. Recent analysis suggests that up to 2,000 GW of offshore wind capacity will be needed by 2050 to keep global temperature increases below 1.5°C. At present, there is no offshore wind capacity in emerging markets other than China, and established energy markets like that of the United States have quite a way to go before offshore wind makes up a significant percentage of the energy mix. Changing the status quo is critical if the world is to meet ambitious targets for greenhouse gas (GHG) reductions and change needs to happen soon. "The long development timescales for offshore wind mean that efforts need to start now to ensure delivery of new capacity"1 (World Bank – Key Factors for Successful Development of Offshore Wind in Emerging Markets - 2021). Creating a supply chain is a challenge, but it also is an opportunity because it presents the industry with a chance to take a holistic approach to building out capabilities from the ground up to deliver a healthy, diverse and sustainable supply chain that enables large-scale deployment and can support mass manufacturing and well-paying jobs for the years to come. This paper analyzes multiple elements of the floating wind industry based on the experience of executing two operating floating wind projects and how this experience and these elements influence the formation of the supply chain system with special focus on the constraints and opportunities in developing a supply chain that is reliable and sustainable. Focus areas include: Addressing uncertainty in the pipeline of projects by leveraging policy incentives and understanding the regulatory environment and its role in expediting offshore wind projectsAddressing constrained space challenges and construction processes and planning for serial productionCombining resources to update ports and shipyards that are not equipped to support floating offshore windIncentivizing young people to enter the offshore wind industry and training a specialized workforceEstablishing technology readiness and suitability for mass manufacturing and large-scale deploymentReducing risk by establishing clear deployment goalsSourcing raw materialsSourcing products that benefit local communities.Measuring how equative and sustainable the industry is in terms of impact on communities.Building a flexible and scalable supply chain