Another offshore wind company has announced that it is expecting to take considerable losses as the industry continues to struggle, Bloomberg News reported Tuesday.
General Electric anticipates that it will lose $1 billion on its offshore wind operations this year, and that it expects to lose a similar amount next year, GE’s CEO said Tuesday, according to Bloomberg. The announcement is the latest sign of trouble for the offshore wind industry, which has seen other leading companies take substantial losses as supply chain woes, inflation, logistical problems and higher borrowing costs have eaten into profit margins.
“Offshore wind remains difficult this year with losses of roughly $1 billion,” GE CEO Larry Culp said Tuesday, according to Bloomberg. “Next year, we expect offshore will have similar losses but substantially improved cash performance.”
“We are staring at some challenges that we need to address,” Culp continued. “We know the industry is ready for a reset.”
GE is not an offshore wind developer, but it manufactures the turbines and equipment crucial to the operation of offshore wind farms, according to its website.
The Biden administration is counting on the technology to provide enough electricity for 10 million American homes by 2030 as a part of its wider push to decarbonize the American energy sector by 2035 and have the overall U.S. economy reach net zero carbon emissions by 2050. Administration officials have boasted that the green energy agenda has drawn out billions of dollars of private sector investment in the industry, but costs have risen so sharply for offshore wind developers that several have chosen to pay large fines to terminate power purchase agreements with utility companies rather than continue at agreed-upon rates.
GE did not respond immediately to a request for comment.
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