Wind energy in the United States faces a blow from Trump’s executive order

President Trump launched a broad attack on the wind energy industry in the United States, with Comprehensive executive order This could prevent not only new offshore wind farms in the Atlantic and Pacific oceans, but potentially many smaller wind farms on federal lands and even on private property across the country.

Which Mr. Trump It was signed in the Oval Office on Monday eveningwould halt all leasing of federal lands and waters for new wind farms pending a new government review of the industry. It also directs federal agencies to stop issuing permits for all wind farms anywhere in the country for now, a move that could stall projects on private lands, which sometimes need federal wildlife or other environmental permits.

While the order does not call for a freeze on wind energy projects already under construction, Mr. Trump has directed the U.S. attorney general and the interior secretary to explore the possibility of “terminating or modifying” any leases already issued. This means that projects that have already received federal approvals may face new obstacles.

Taken together, these steps could be disruptive to the US wind energy industry, which provides 10% of the country’s electricity and is a major source of energy in Republican-led states such as Iowa, Oklahoma and Texas. The wind industry currently has Projects worth approximately 40 GW — enough to power tens of millions of homes — is under development in the Atlantic Ocean and in states such as Wyoming, Montana and North Dakota.

The Biden administration has approved permits for 11 commercial wind farms along the Atlantic coast. Five of them are under construction and one of them has been completed. But eastern states like New York and Massachusetts had hoped to build more offshore wind projects to meet their renewable energy goals. These goals are now in danger.

The wind energy industry strongly criticized Trump’s order, saying it was inconsistent with that Another ad The president said Monday that the country was in an “energy emergency” and needed all the electricity it could get to power data centers and new factories.

“Wind energy is a key component of our ability to meet the growing electricity demand for manufacturing and data centers that are essential to national security,” said Jason Grummett, CEO of the American Clean Energy Association, a renewable industry trade group. “The possibility that the federal government would seek to oppose energy production by American companies on private lands is contrary to the character of our nation as well as our national interests.”

It was Mr. Trump An ardent critic of wind energy for yearssince he tried unsuccessfully to stop the construction of an offshore wind farm within sight of one of his Scottish golf courses. In a speech shortly after his inauguration on Monday, the new president launched into a long tirade against wind turbines.

“We’re not going to do anything like the wind,” Trump told a crowd of supporters at Capital One Arena in Washington. “Big, ugly windmills, they destroy your neighborhood.”

His order to launch a massive crackdown on new wind farms adds to the growing challenges facing the industry.

While wind energy remains one of the fastest growing sources of electricity in the United States, growth has occurred It has slowed in recent years In the face of rising costs and rising interest rates. Many wind energy companies are now facing delays in securing connections to the grid, as well as opposition from rural communities concerned about disruptions caused by new skyscraper-sized turbines. More than 400 counties Local restrictions imposed Or ban wind turbines yet, including most of Tennessee and Kentucky.

Developers of offshore wind projects – which are larger, more complex and more expensive – They struggled too With increasing expenses and supply chain obstacles.

On Monday, even before Trump signed his executive order, Ørsted, the world’s largest offshore wind developer, said it would cut nearly $1.7 billion on projects off the US East Coast. The company attributed this setback to rising interest rates in the United States, which raised the costs of the company’s projects, as well as delays in the construction of the Sunrise Wind project, a large project off Montauk, New York.

On a call with analysts on Tuesday, Ørsted CEO Mads Nipper blamed the delisting on an “immature and nascent industry” in the United States, which has not completed large offshore wind farms, compared to many similar projects in Europe.

Experts said Mr. Trump’s order would make it more difficult. The possibility that Mr. Trump might try to undo leases and projects already approved by the Biden administration could also create a long-term drag on the industry.

The order “could have negative impacts beyond Trump’s term because project developers may be wary of investing in a capital-intensive sector that clearly faces high electoral risks,” said Timothy Fox, managing director at ClearView Energy Partners, a consulting firm.

Monday’s executive order asked federal agencies to conduct a “comprehensive” review of federal wind permitting practices, including a study of the environmental impacts of wind turbines on birds and marine mammals. Trump insisted that offshore wind farms were killing endangered whales in the Atlantic Ocean, even though scientists said they had found nothing. Evidence to support this.

The order also adds new legal uncertainty to the industry. The Biden administration has been defending wind projects facing legal challenges from domestic opponents, including the Revolution Wind and South Fork project near Rhode Island, the Virginia Offshore Wind Project and the Maryland Offshore Wind Project.

Fox said Monday’s executive order makes it unlikely that the Trump administration will continue to defend those projects vigorously in court.

“Many offshore wind projects have been approved or are about to be approved after undergoing years of reviews,” said Eric Milito, president of the National Oceanic Industries Association, which represents oil, gas and wind companies operating offshore. “In any emerging industry, even a small delay can lead to multi-year setbacks, creating bottlenecks and higher costs that ultimately impact energy consumers.”

Plans for floating wind turbines Off the coast of California and In the Gulf of MaineFor example, it has not yet received federal approval and is at risk of being shut down.

As part of his order, Mr. Trump issued a moratorium on the Lava Ridge Wind Project, a 231-turbine project on federal land in Idaho that can be seen from a World War II historic site. The entire state legislature opposed it. This project has already received permits from the Bureau of Land Management during the Biden administration.

Opponents of offshore wind projects — which often include fishermen who worry about disrupting operations, landowners who worry about spoiling views and Some groups associated with the fossil fuel industry -He cheered Mr. Trump’s executive orders.

“We are grateful that the new administration is protecting our distinctive, multi-generational trade from foreign energy companies and alphabet soup agencies that are destroying our way of life,” said Jerry Lehman, CEO of the New England Fishermen’s Welfare Association. Which opposes offshore wind projects.

Stanley ReedContributed to reports