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U.S. Offshore Wind Industry in Need of Reset, Says BP Executive

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U.S.,Offshore Wind Industry,BP

A clean energy executive at BP has stated that the U.S. offshore wind industry is fundamentally broken and requires a reset. The regulatory and permitting environment for the industry can be fixed, according to the executive, who highlighted challenges such as inflation adjustments, permitting issues, and delays in project construction. BP and Equinor's attempts to renegotiate power purchase agreements for wind farms off the coast of New York were recently rejected, leading to impairments for both companies.

The U.S. offshore wind industry is “fundamentally broken” and needs a reset, a clean energy executive at supermajor BP said at the FT Energy Transition summit on Wednesday. But the regulatory and permitting environment for the industry can be fixed, Anja-Isabel Dotzenrath, head of Gas and Low Carbon Energy at BP, said on the conference, as carried by Reuters. Currently, the U.S.

“Equinor and BP are assessing the impact of the decision on these projects and future development plans,” BP said. Norway’s Equinor, which is BP’s partner in the ventures, recognized a $300 million impairment to its offshore wind projects on the US North East Coast following the rejection of petitions related to offtake agreements. “Offshore wind projects on the US Northeast Coast are negatively impacted by cost inflation and supply chain constraints.

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