Washington Watch

Wind-farm vessels for the U.S.?

As part of the famed fiscal cliff deal, Congress gave the wind power industry a boost, and in doing so, also boosted the workboat sector.

The deal would extend for one year the energy tax credit that provides a 2.2-cents per kilowatt-hour subsidy — which proponents prefer to call a much- needed financial incentive — to energy produced by wind power. This will cover all projects that start in 2013.

This is good news for workboat companies and shipyards that have been closely watching the development of offshore wind farms as a new business opportunity. Construction and maintenance phases will require specially designed offshore wind-farm vessels for transporting workers, supplies and materials to offshore wind sites. Construction usually takes two years, and the lifespan of a wind farm is 25 years.

The extension has added some stability to the market, which had slowed in recent years due to financial concerns, the expiring tax credit, and environmental issues. So far, all offshore projects are in the planning or research phases, and unlike Europe, the U.S. has not erected one offshore turbine. Europe has several wind-farm vessels in operation.

Supporters now predict that this will be a busy year for wind, as two projects off the New England coast are set to begin construction, and others are in the pipeline.

In addition, the Obama administration has identified two more offshore areas along the East Coast suitable for wind farms with leases going to competitive bid this year, and has announced $47 million in grants to demonstrate direct drive turbines and new types of foundations for offshore wind.

So things are moving forward. For sure, environmental and cost concerns persist, but these are all positive developments for the workboat industry, and for national energy production as well.