US offshore wind on the brink From Hamburg to the World: EEHH at the German Pavilion during the IPF 2025 in Virginia Beach

A return to oil and gas production, a halt to Empire Wind and a tariff offensive: the US offshore wind industry is facing conditions of unprecedented difficulty. This situation also overshadowed the 2025 International Partnering Forum (IPF) in Virginia Beach, which was organised by the Oceantic Network for the twelfth time. The Renewable Energy Hamburg Cluster Agency attended the event at the German Pavilion of the Federal Ministry for Economic Affairs and Climate Action (BMWK) together with nine other companies and organisations (including members such as WINDEA Offshore and RelyOn as well as the Offshore Wind Energy Foundation and WAB e.V.). Among the aims of the trip was to observe the US market under the current circumstances.

Offshore wind facing political headwind

It is well known that US President Donald Trump is not a friend of wind energy. All the same, few would have expected him to halt the expansion of offshore wind energy in the USA just one day after taking office. The Presidential Memorandum temporarily ordered the withdrawal from all waters of the outer continental shelf for offshore wind leasing and stipulated a review of the federal government's leasing and approval practices for wind projects. One remarkable aspect from a legal perspective is that the Presidential Memorandum neglects to set a deadline. Fresh tenders and approvals for offshore wind projects are therefore impossible for the time being.

Shortly after IPF Week, 18 US states – including New York and Washington, D.C. – sued the Trump administration for blocking wind energy. The New York State Attorney General warns that the Presidential Memorandum is “destroying one of the fastest growing sources of clean, reliable and affordable energy in the United States.” It also sees “a threat to thousands of well-paid jobs and billions in investments.” Around 4,400 people are currently employed in the wind industry in New York. Its expansion could create another 18,000 new jobs.

Flagship project on the brink

The offshore wind project Empire Wind 1 suffered yet another setback for the sector. Although Empire Wind 1 has received all the necessary federal and state permits (construction and environmental impact assessment), the Bureau of Ocean and Energy Management (BOEM for short, the central approvals agency for offshore wind) is now set to conduct a fresh review.

The Norwegian energy company Equinor signed the lease agreement with the US government in 2017 and is to build the 810 MW offshore wind farm on behalf of the New York State Energy Research and Development Authority (NYSERDA for short). Commissioning was originally slated for the middle of this year, but has been postponed to 2027 due to delays caused by approval and grid connection issues.

Trade journals estimate that Equinor has already invested more than US$2.5 billion in the construction phase and created 1,500 jobs. After receiving the order, Equinor and its contractors took immediate action to suspend relevant maritime activities and ensure the safety of workers and the environment. Empire Wind 1 has long been viewed as a flagship project in the US energy transition and, once completed, will be able to supply around 500,000 households in the state of New York with green electricity. It is not yet known whether Equinor will take action against the unlawful order.

Damage to investor confidence

According to IntelStor, an online market research firm for the renewable sector based in Houston, over €66 billion of investment might be jeopardised by the introduction of the tariff policy and the suspension of offshore expansion, including a significant proportion of foreign direct investment (FDI). The capital would be necessary to fund project-related capital costs, the expansion of port infrastructure, production facilities and other costs along the supply chain. Losses in job creation and tax revenue are also included, as well as investment in research and development.

In response to current developments in energy policy, the German energy company RWE is freezing its offshore activities in the USA for the time being and is exercising extreme caution with regard to future investments. In particular, the halt to Empire Wind 1 calls into question the legal certainty for investments in the USA, even with valid approvals. Leading legal experts in the US attending the conference voiced great concern about the negative signals emanating from the new US administration in regard to the offshore wind industry and other sectors.

European market players will require resilience

The port tour in Norfolk clearly demonstrated that European and German companies are of crucial importance for the development of the US offshore wind industry. Monopiles from EEW, transition pieces from Denmark and an installation vessel from DEME in Belgium are ready for the 2.6GW Coastal Virginia Offshore Wind project on the port site. Technology ‘made in Germany’ is also used for green drilling into the seabed. Many of the German companies are doing business in the USA across several segments and will therefore refrain from staging an immediate withdrawal from the market, despite the uncertainty. In the current phase, it is important to maintain contact with local business partners and keep a close eye on political developments.