Siemens Gamesa Cancels $200 Million Offshore Wind Turbine Factory in Virginia Amid Industry Struggles

Inflation, raised interest rates, and supply chain issues cited as key factors in the cancellation of the project that would have created over 300 jobs and supported Virginia's ambitions to become a hub for offshore wind projects.

Siemens Gamesa, a European company, has cancelled its plans to build a $200 million factory for offshore wind turbine blades in Virginia, which would have created over 300 jobs and supported the state's ambitions to become a hub for offshore wind projects.
The cancellation is attributed to inflation, raised interest rates, and supply chain issues, which have cut into the profitability and viability of some offshore wind projects in the U.S.
Other offshore wind projects, including two large ones off the coast of New Jersey by Danish energy developer Orsted and the Park City Wind project off the coast of Massachusetts, have also been cancelled due to similar issues.
Despite the cancellation, Dominion Energy's plans for a massive wind farm off the coast of Virginia Beach, which will use turbines from Siemens Gamesa's European facilities, remain on schedule.
Robert McNab, an economist with Old Dominion University, suggests that cancelled projects may return and even expand once inflation and interest rates fall, as the costs of renewable energy have been declining and becoming increasingly competitive.