DNV is performing due diligence to enable the financing of eight offshore wind projects on the United States’ Atlantic Coast. The announcement follows news from DNV’s Energy Transition Outlook 2024 report, which forecasts that about 10 GW of fixed offshore wind is expected to be installed in the USA between 2040 and 2050. While the industry has seen some setbacks recently, so that the latest Energy Transition Outlook has tempered its overall forecast for offshore wind, projects are still moving steadily forward, as reflected by robust financing activity in the U.S. The offshore wind projects DNV is assessing collectively represent 13 GW of clean energy capacity, which would increase the USA’s total wind power capacity by nearly 9% if they become operational.
The technical due diligence DNV is providing to the financial stakeholders for these offshore wind projects is grounded in methodology that is an evolution of the company’s proven approach, which has enabled on-time financing for thousands of onshore wind, solar, transmission and battery energy storage projects in the USA and Canada.
DNV has also established local, in-house expertise around the intricacies of US project finance and the structures that have emerged since the passage of the Inflation Reduction Act, such as transferability. For these eight offshore wind projects, DNV is providing pre-commitment and construction monitoring due diligence to ensure all stakeholders understand the risks of the project prior to a final investment decision and further capitalise on tax credit monetisation opportunities from the IRA. These services are delivered within established financing mechanisms and processes to ensure on-time closing.
“So far, three of the eight offshore wind projects we’re involved with have reached a final investment decision and the balance is making rapid progress towards this milestone. Our customers are now getting steel in the water and creating benefits for local communities,” said Richard S. Barnes, region president for Energy Systems North America.
DNV’s US–based offshore wind team enabled clients to succeed in California’s 2022 offshore auction, providing in-depth assessments of the technical, societal, and environmental risks around offshore wind development in Oregon and Maine, and are addressing barriers on behalf of the industry to accelerate the deployment of high voltage direct current (HVDC) technology.
