market analysis of us offshore

2. The U.S. offshore wind industry has
been defined this year by a mix of
headwinds and tailwinds, and the
third quarter was no different. By the
end of September, developers for
three projects had withdrawn from
their power agreements and more
had petitioned their respective states
for significant renegotiations. Other
developers warned projects were
financially stalled.
At the same time, the pipeline of
projects permitted for construction
tripled, with more approvals still to
come, and California moved closer
to offshore wind deployment in its
push for 25 GW. New procurement
rounds in Massachusetts and Rhode
Island highlighted New England’s
tightening coordination on all aspects
of the offshore wind industry. Off the
New England coast, Vineyard Wind 1
prepared for the first commercial-scale
turbine installation in the U.S. market.
The vessel-building and secondary
steel manufacturing sectors continued
their strong performances, the former
highlighted by President Joe Biden’s
July visit to Philly Shipyard to celebrate
Great Lakes Dredge and Dock’s steel-
cutting ceremony for the first U.S.-built
subsea rock installation vessel.
Looking ahead to the fourth quarter,
the U.S. market could finally see its first
significant post-Inflation Reduction
Act manufacturing investment. The
most obvious candidate is New York,
which is expected to award new power
agreements, and with that could come
new investments in turbine blade and
nacelle facilities.
The Business Network for Offshore Wind’s Quarterly Market Report
recaps the events, trends, and supply chain advancements in the
burgeoning U.S. offshore wind industry.
THE BUSINESS NETWORK FOR OFFSHORE WIND

3. THE NUMBERS
932 MW
Major Installation
in Progress
42 MW
Operating
86.9 GW
State Goals
& Targets1
4%
Under
Contract 14.4 GW 18%
Approved for
Construction 2.7 GW 194%
Source: Business Network for Offshore Wind Market Dashboard showing rate of increase over previous quarter
2023 Q3 MARKET UPDATE | 3

4. WATERS HED MOMENT
From Steel in
the Water to
Blades in the Sky
America’s first two commercial-scale offshore
wind projects continued major installation
activities this quarter off the southern coast of
New England, achieving important milestones
and placing them on the precipice of delivering
power to shore. The 800 MW Vineyard Wind 1
and 132 MW South Fork Wind projects — com-
prising 62 and 12 turbines, respectively — are
diligently moving from foundation and power
cable installation to hoisting and installing the
turbines and blades.
During the third quarter, South Fork Wind
announced it had successfully installed all 12 of
its foundations and its American-made offshore
substation, which was fabricated in Texas. Vine-
yard Wind 1 similarly installed several founda-
tions, its own substation, and in early Septem-
ber announced it had begun installation on the
towers, turbines, and blades for its projects. At
least half a dozen U.S. vessel operators are sup-
porting Vineyard Wind 1’s installation activities,
including Foss Maritime, which is continuously
barging out critical components to the installa-
tion site from New Bedford, Massachusetts.
Vineyard Wind’s first turbine
departs New Bedford Marine
Commerce Terminal.
Photo Credit: Vineyard Wind
4 | BUSINESS NETWORK FOR OFFSHORE WIND

5. I NDUST RY CHALLENGES
Inflation’s Fallout: 3.2 GW in
Power Contract Cancellations
The reverberations of global economic turmoil continue to significantly im-
pact the U.S. market and developers spent the quarter working their projects’
finances through renegotiations, delays, or withdrawals, all of which have im-
pacted investments in new supply chain development. The situation prompt-
ed six East Coast governors to author a letter to the White House warning
that rising project costs were falling on the states and calling for more federal
assistance to make projects whole.
In New England, project developers officially canceled power contracts to
provide up to 2.4 GW of offshore wind generation to Massachusetts and
0.8 GW to Connecticut. The developers for the three projects — SouthCoast
Wind, Commonwealth Wind, and Park City Wind — agreed to pay $124 mil-
lion in penalties and will rebid into new state procurement rounds beginning
this year. The resulting delay will inevitably push back installation dates to
the late 2020s.*
Beyond Massachusetts, two New York developers petitioned the state’s
public utility commission to consider 54% increases in the contract price for
projects totaling 4.3 GW in power capacity.** Further east, the state of Rhode
Island rejected a sole procurement proposal citing high prices — the first
failed state procurement request in recent history.
* Park City Wind’s withdrawal occurred in early October, before publication
** According to Recharge
2023 Q3 MARKET UPDATE | 5

6. IN DUST RY COLLABORATION
States Embrace
Coordination and Move
Market Forward
Even in the face of economic
turmoil, states continued their
push for offshore wind power
in pursuit of its economic and
climate benefits. Importantly,
states prioritized interstate
coordination, symbolized
by a new Memorandum of
Understanding (MOU) be-
tween nine East Coast states
and the White House to work
in clusters on supply chain
advancement.
In New England, Massachu-
setts officially opened its
newest procurement round,
seeking 3.6 GW of off-
shore wind generation, and
neighboring Rhode Island
announced it would open
its own procurement round
for 1.2 GW to coincide with
Massachusetts. Connecticut,
which had already solicited
feedback on a new procure-
ment round, could soon follow
suit. The industry continues
awaiting final procurement
awards out of New York and
New Jersey.
As previewed in last quarter’s
report, California, Delaware,
and Maine all successfully
passed new offshore wind
legislation. Significantly, Maine
now has a 3 GW by 2040
target and California success-
fully passed bills authorizing
the purchase of offshore wind,
putting the state on a path to
realize its goal of deploying 25
GW of offshore wind.
Signatory states of new
state-federal Memorandum
of Understanding on supply
chain development
6 | BUSINESS NETWORK FOR OFFSHORE WIND

7. Gulf of Maine
New York Bight
Central Atlantic
Carolina Long Bay
Gulf of Mexico
Oregon
Northern
& Central
California
Leased 2022
Leased 2022
Leased 2022
Leased 2023
Anticipated
Lease Sale 2024
Anticipated
Lease Sale 2024
Anticipated
Lease Sale 2024
P O LICY PROGRESS
Federal Government Expands Offshore Wind Pipeline
While state demand for offshore wind con-
tinues climbing towards 90 GW, the power
generation approved for construction has
finally started advancing north. At the start
of this quarter, just 0.9 GW was approved for
utility-scale construction. By the end of the
quarter, the total had reached 2.7 GW with
New England’s 0.7 GW Revolution Wind and
New Jersey’s 1.1 GW Ocean Wind 1, which
both received final environmental review
approval, and another 5 GW only weeks away
from approval.
The Biden-Harris administration also ad-
vanced progress on its goal to auction seven
new wind energy areas by 2025 with a lease
sale in the Gulf of Mexico and identification
of future wind energy areas off the coasts of
Oregon and the Central Atlantic. Despite the
Gulf serving as the engine of the offshore
wind supply chain, the auction results were
disappointing. Only one area in Louisiana
fetched a near-minimum bid, with the two
other areas in Texas going unleased. Analy-
sis suggested a lack of clear state financial
support (although Louisiana has courted the
industry), and the need for new technology
to optimize the Gulf’s low wind speeds and
significant hurricane activity, depressed in-
terest. BOEM has indicated it will hold future
auctions in the Gulf, allowing for a market to
develop in the coming years.
APPROVED FOR CONSTRUCTION
South Fork 132 MW
Vineyard Wind 1 800 MW
Ocean Wind 1 1,100 MW
Revolution Wind 704 MW
U.S. Offshore Wind Market
2023 Q3 MARKET UPDATE | 7

8. 8 | BUSINESS NETWORK FOR OFFSHORE WIND
SU P PLY CHAIN GROWTH
Shipbuilding and Secondary
Steel Work Keeps Pace
In the third quarter, shipbuild-
ing and secondary steel work
continued showing why they
are the strongest subsectors in
the U.S. offshore wind supply
chain. In Philadelphia, President
Biden celebrated a steel-cutting
ceremony for Network member
Great Lakes Dredge and Dock’s
(GLDD) new $300 million
vessel, which will provide scour
protection for turbine founda-
tions and cables. The project
marks the 100-plus-year-old
company’s first foray into off-
shore wind. Shortly after, GLDD
announced a contract with New
York-based Carver Companies
to provide the raw materials
needed for scour protection.
Wisconsin-based Fincantieri
Bay Shipbuilding and Loui-
siana-based Edison Chouest
both marked milestones on the
second and third new-build
Service Operations Vessels
(SOV) for the U.S. market.
Each vessel costs around $200
million and is designed to keep
maintenance technicians at sea
for several weeks. Elsewhere
in the U.S., new and retrofitted
crew transfer vessels (CTVs)
rolled out of shipyards in Rhode
Island and Connecticut, and
Florida’s Eastern Shipbuild-
ing Group won a contract to
convert an oil and gas vessel
for work as an SOV in offshore
wind.
Finally, Ørsted officially ex-
tended work with New Jersey’s
Riggs Distler to provide critical
internal turbine components
for its mid-Atlantic portfolio.
Ørsted previously broke ground
on a new manufacturing center
in Baltimore that employs over
a hundred union works on the
secondary steel components.
The contract also included new
work for western New York’s
Ljungström, a steel supplier
that’s transitioned out of oil
and gas to offshore wind and
revived its small-town facto-
ry in the process. Ljungström
announced the new work will
expand its workforce to 350,
double what it was just a few
years ago.
President Biden speaks on offshore wind vessel progress at the Philadelphia shipyard in July.
(Photo Credit: The White House)
Somerset, MA
CTVs
Bridgeport, CT
CTVs
Warren, RI
CTVs
North
Kingstown, RI
CTVs
Philadelphia, PA
Fallpipe
Brownsville, TX
WTIVs
Southern
Louisiana
SOVs
Gulfport, MS
SOVs
Panama
City, FL
SOVs
Sturgeon Bay, WI
SOVs
Palatka, FL
CTVs
Tampa, FL
SOVs
U.S. Shipbuilding Locations
8 | BUSINESS NETWORK FOR OFFSHORE WIND

9. Along our U.S. coastline lies an energy resource with the power
to create unparalleled job and economic growth—offshore wind.
The Business Network for Offshore Wind is a 501(c)(3) nonprofit
dedicated to building a network that will usher the U.S. into the
offshore wind market. We empower members with the edu-
cation, tools, and connections necessary to participate in this
booming industry.
CONNECT WITH
THE NETWORK
FOLLOW US ON SOCIAL MEDIA
As the leading collaborative voice for the offshore wind industry,
the Network brings people together through all stages of the
supply chain, making connections that help companies find their
own story of success in the industry. To find your place in this
nascent industry, your business needs to be present, relevant,
and networking with the right stakeholders—we can make that
happen. As the only nonprofit organization solely dedicated to
offshore wind growth in the U.S., 100 percent of your member-
ship dollars directly support the growth of this exciting
new industry.
BECOME A MEMBER
The Network offers in-person events and education-
al webinars throughout the year that bring together
global industry leaders, policymakers, academia, and
leading experts to share the latest industry news and
offer your company superior business-to-business
networking. From grid & transmission and operations
& maintenance to finance and ports & vessels, the
Network’s events help move the industry forward.
Upcoming events include:
ATTEND & SPONSOR
NETWORK EVENTS
See a complete list of Membership Benefits
at offshorewindus.org/membership
Contact Our Membership Team:
membership@offshorewindus.org
NOV. 9 (BOSTON)
APRIL 22-25 (NEW ORLEANS)
JAN. 18-19 (VIRGINIA BEACH)
2023 Q3 MARKET UPDATE | 9