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Last Updated on: 17th March 2025, 09:16 am
US President Donald Trump did the domestic offshore wind industry no favors when he abruptly suspended the federal offshore lease program upon taking office. Nevertheless, activity continues apace elsewhere around the globe. US wind investors still have an opportunity to lend a hand, with the Asia-Pacific region among the hotspots.
More Offshore Wind Energy For Vietnam, From US
A case in point is Vietnam and the California renewable energy firm Pacifico Energy. Last week, Vietnam Party General Secretary To Lam hosted the top brass from Pacifico at an event in Vietnam, during which Lam recognized PE as a valued driver of Vietnam’s energy transition.
Taking note of Vietnam’s economic growth and 2050 net zero goals, the Ministry observed that “Vietnam needs a stable source of electricity, especially clean electricity,” and that it has completed the legal framework needed to attract new energy investments to the country.
“In that spirit, the General Secretary suggested that PE Group continue to expand cooperation and business investment in Vietnam, including new energy conversion projects, and accelerate the implementation of projects in progress,” the Ministry continued.
The sentiment was strongly seconded by Pacifico Energy, which affirmed Vietnam’s impressive offshore wind potential and pledged to continue investing in Vietnam’s wind industry.
More Offshore Wind For Vietnam, USAID Or No USAID
During the event, both Vietnam and Pacifico made a point of drawing attention — several times — to the leveling-up of US–Vietnam economic cooperation under the new Comprehensive Strategic Partnership between the two countries, which just marked its one-year anniversary in September.
The focus on CSP is of interest because part of the program was funded by USAID, a longstanding federal agency that Trump has all but abolished by suspending disbursements and laying off staff.
In a recap of CSP last September, the US Embassy and Consulate in Vietnam underscored the importance of USAID-funded activities to the pace of economic development in Vietnam, including a new $3.2 million digital trade program and a $15.5 million project to support higher education, with an eye on cultivating trade relationships beneficial to both countries. In August, for example, Vietnam approved imports of nectarines and peaches from California for the first time, after a years-long process of negotiation and pest control measures.
“USAID also launched a partnership with the Vietnam Bank for Agriculture and Rural Development (Agribank) and Vietnam Prosperity Joint Stock Commercial Bank (VPBank) to expand finance opportunities for small and growing enterprises in the agriculture sector,” the Embassy explained.
Among other activities, USAID helped Vietnam establish a framework for businesses to purchase renewable energy directly from private firms, helping to attract more green investment in the country, and potentially helping US firms compete on a global level. Notably, Lam also hosted the French diversified energy firm EDF on the same day.
Plenty More Offshore Wind Where That Came From
No word yet on whether or not the Trump administration will try to claw back any of those funds, or any others already committed to Vietnam, or whether or not US investors will lose out to the competition as a result. Meanwhile, though, Lam voiced confidence in PE’s present and future role in Vietnam.
The Ministry emphasized that “the General Secretary suggested that PE Group continue to expand cooperation and business investment in Vietnam, including new energy conversion projects, and accelerate the implementation of projects in progress.”
There is plenty of room for progress. According to a recent analysis by the organization Energy Sector Management Assistance Program, a partner of the World Bank, offshore wind could account for 12 percent of Vietnam’s electricity generation by 2035.
“By replacing coal-fired generation, this could help to avoid over 200 million metric tons of CO2 emissions and add at least USD$50 billion to Vietnam’s economy by stimulating the growth of a strong, local supply chain, creating thousands of skilled jobs, and exporting to other offshore wind markets globally,” ESMAP noted.
US Loses The Floating Offshore Wind Race, Too
A faint spark of life in the US offshore industry still flickers, as work continues on the Coastal Virginia Offshore Wind Project. The leading offshore wind supply chain state of Louisiana also has two small-ish offshore projects under consideration in state-controlled waters that are not impacted by the federal lease freeze, but that’s about it.
To deepen the hurt, loss of the offshore lease program means that the US can’t take advantage of floating wind turbines, a new technology that the Department of Energy invested years of R&D and hundreds of millions of dollars to bring to market. That’s a considerable waste of taxpayer dollars, but the end of US offshore leases does not spell the end of floating wind turbines.
PE — which also operates in Korea and Japan — is among those enthusiastically embracing the technology. “Floating wind turbines are a viable alternative to deepwater mounts making it possible for locales with a lack of shallow waters to host wind turbines,” the company notes, adding that floating turbines can avoid cluttering ocean views from the coast, and reduce conflicts with the fishing and shipping industries.
All this activity on the part of Vietnam is particularly interesting because it is a further demonstration that China is not the only Asia-Pacific country tumbling over itself to support the energy transition with offshore wind while the US sits on its hands. So much for unleashing “American energy dominance.”
In terms of energy dominance, Canada is also coming over to the offshore side, with Nova Scotia reportedly scouting five potential sites last week. If Trump takes a pause in his idiotic, unforced trade war, perhaps some of that 40-state US offshore wind supply chain won’t go to waste after all.
Nah. The way things are going, Canada will most likely turn to the booming overseas supply chain to fulfill its offshore wind vision, leaving US manufacturers and workers in the lurch.
Photo (cropped): US offshore wind investors are still alive, kicking, and hopping on new offshore partnerships with other nations eager to pick up the ball dropped by President Trump (courtesy of PE).
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