Beleaguered Offshore Wind Gets Two Small Signs of Hope

Once completed in 2026, Dominion Energy’s Coastal Virginia Offshore Wind project will generate carbon-free power for 660,000 homes. (Courtesy Dominion Energy)

Prospects for America’s offshore wind industry are bleak, but a surprising legal move by the Trump administration and some supportive words from Republicans show that the industry could still find a footing. If so, it would be a lifeline for companies working on the projects, including Orsted, Dominion Energy , Equinor , BlackRock, GE Vernova , and Iberdrola.

President Donald Trump has thrown the book at the offshore wind industry since the day he took office. Projects are being investigated, permits have been revoked, and two installations that were already under construction have been halted with little explanation.

So it came as a surprise to many in the industry when Trump’s Department of Justice filed a legal brief earlier this month supporting Empire Wind, an offshore wind project near New York’s Long Island that the administration had previously halted. The legal brief was filed in a case brought against the project by a nonprofit called Save Long Beach Island that aimed to stop the project because of its harm to marine animals. The government argued in its brief that permits had been issued correctly by the Biden administration, and that rules are in place to protect animals.

What makes the legal brief particularly surprising is that Trump’s Interior Department, which oversees offshore projects, had argued in April that Empire Wind’s permits had been rushed through by the Biden administration. The department shut the project down temporarily, before allowing it to restart the following month. Trump himself has said that wind farms are much too dangerous to wildlife and disruptive to other ocean users like fishermen, and his cabinet officials have come after them.

“Under this administration, there is not a future for offshore wind because it is too expensive and not reliable enough,” Doug Burgum, Secretary of the Interior, said at a conference in Milan last week.

But some projects may have more of a future than others. The administration’s about-face on Empire Wind is a sign that the political landscape around offshore wind remains unpredictable. There are five projects that have begun construction, and could potentially get to the finish line, connecting to the larger electricity grid and potentially providing enough power for millions of homes.

Empire, owned by Norwegian energy company Equinor, is viewed as the only “truly safe project,” according to Jefferies analyst Paul Zimbardo. Empire’s case is unique. It was halted by the Interior Department in April and reinstated in May after advocacy by New York Gov. Kathy Hochul. Exactly how Hochul saved the project is unclear. The Trump administration implied that it had made a deal to allow the wind project to proceed in return for Hochul allowing new pipelines into New York, but the governor denied making a deal. The $5 billion project is now more than 50% complete, and set to start sending power to New York by late 2026. Assuming New York approves new natural gas pipelines into the state—which is no guarantee—the project may have an easier path to completion.

Others appear to be more precarious.

Revolution Wind off Rhode Island, was also halted by the administration last month despite being 80% complete, and remains in limbo. The project is owned by Danish company Orsted and a unit of investment firm BlackRock. The owners, as well as the states of Connecticut and Rhode Island, sued the government to reverse the halt. The project has received support from others too, including the U.S. Chamber of Commerce and Rep. Don Bacon, a Republican from Nebraska. Bacon wrote on X that “businesses and workers deserve predictability.”

The Coastal Virginia Offshore Wind project, owned by utility Dominion Energy, has also received support from a Republican—Congresswoman Jen Kiggans, who represents parts of coastal Virginia. The Transportation Department recently rescinded millions of dollars worth of grants for ports meant to support installation, but so far the larger project has been allowed to proceed. It’s about 60% complete.

“I’ve seen firsthand how clean energy investments are strengthening our community and our military,” Kiggans said in a statement to Barron’s. “Offshore wind projects in our region are not only creating jobs and driving economic growth, but they’re also delivering real benefits to our Navy bases, specifically to Naval Air Station Oceana.”

Speaker of the House Mike Johnson passed Kiggans’ support along to cabinet members, he told Politico. There is no sign yet that the advocacy will make a difference. The Interior Department didn’t respond to a request for comment on its plans.

Two other projects under construction are Vineyard Wind off Massachusetts, owned by Spanish utility Iberdrola and privately held Copenhagen Infrastructure Partners, and Sunrise Wind off New York, owned by Orsted. Both are still proceeding, but face potential obstacles, according to Zimbardo. Vineyard Wind has had construction setbacks, with a wind blade made by GE Vernova breaking off, and Sunrise Wind is more expensive to customers than other projects, he noted.

Other projects that are still in the preparation stages have also faced setbacks. The Trump administration moved on Friday to revoke permits the Biden administration had approved for the Maryland Offshore Wind Project, which was expected to start construction next year. It’s owned by Italian company Toto Holding and investment firm Apollo Global Management. The owners have vowed to fight for their permits.

Write to Avi Salzman at avi.salzman@barrons.com