The ongoing influence of former President Donald Trump on the offshore wind industry has intensified with his recent order to halt construction of the nearly completed $4 billion Revolution Wind project off the coast of Rhode Island. This wind farm, equipped with 114 turbines, was expected to supply enough electricity for 350,000 homes upon completion next year.
During a cabinet meeting on March 15, 2024, Trump expressed his disdain for wind energy, claiming to educate other nations about the technology he opposes. “I’m trying to have people learn about wind real fast… some countries are destroying themselves with wind energy,” he stated, as reported by the New York Times. Trump’s long-standing opposition to wind energy has roots in his personal interests. In 2006, he purchased an estate in Scotland with plans to develop a golf course, only to discover that a significant wind farm was planned nearby. He has vocally opposed wind projects, arguing they would harm tourism.
The ripple effects of Trump’s policies can be seen globally, particularly in Australia. Recently, Equinor, a Norwegian oil and gas company, withdrew from a joint venture with Australian firm OceaneX to develop the $10 billion Novocastrian Wind project. This project was anticipated to create 3,000 jobs and significantly contribute to the renewable energy sector in the region. Chris Bowen, Australia’s Climate Change and Energy Minister, expressed disappointment over Equinor’s decision, which follows a broader trend of reduced investment in renewables by the company.
Bowen noted that Equinor’s retreat reflects current global investment challenges in offshore wind, exacerbated by uncertainty stemming from the United States. “Equinor is withdrawing from renewables investment around the world… Offshore wind is facing some global international investment headwinds right at the moment,” he said on ABC radio.
This situation mirrors developments in the U.S., where Trump’s administration has had a profound impact on the renewable energy landscape. In July 2024, BP announced a significant shift back to fossil fuels, selling off ten onshore wind projects and restructuring its offshore assets into a joint venture. BP’s chief executive, Murray Auchincloss, stated, “We have completely decapitalised renewables,” highlighting the effects of changing political sentiment.
In the U.S., the recent halt to Equinor’s Empire Wind 1 project near New York City further exemplified the challenges facing the wind industry. The project, which was already under construction, aimed to provide clean energy to the city and power approximately 500,000 homes. Trump’s abrupt stop-work order, which lasted for four weeks, incurred costs of about $200 million for Equinor.
The uncertainty in the offshore wind sector has not only increased costs but also driven investors to be more cautious. Andy Evans, a co-owner of OceaneX, linked these international trends directly to the challenges faced in Australia, stating, “Trump’s role in stopping work on the entire wind build for a month sent a great wave of hysteria through offshore wind industry and investment.”
Despite these setbacks, some experts argue that Australia can adapt. Alison Reeve, director of the Grattan Institute’s energy program, indicated that offshore wind does not play a significant role in current energy models until after 2030. She believes that any shortfall in offshore wind can be compensated by solar and onshore wind resources.
Yet, Evans warns against underestimating the necessity of offshore wind energy. He argues that diverse renewable sources are crucial for the country’s energy future. Offshore wind can complement onshore projects by providing power during times when onshore wind is less reliable. “Together, they could provide something more like the base load power we are used to,” he stated.
Bowen remains committed to advancing offshore wind initiatives, despite the challenges posed by misinformation and global market dynamics. Celebrating the awarding of two preliminary licenses for exploratory work in Western Australia, he emphasized the importance of pursuing these projects for the sake of economic transition. “We don’t do these things because they’re easy, we do these things because they’re important,” he affirmed.
The future of offshore wind in both the U.S. and Australia remains uncertain as the industry grapples with political influences, investment hesitance, and operational challenges.
