Mainstream Renewable Power shelves US offshore wind ambitions after 'strategic review'

Mainstream Renewable Power has quietly shelved its ambitions in the US market as part of a global realignment strategy that prioritises advanced projects in its portfolio elsewhere.

The developer said in a statement sent to Recharge: “Mainstream recently concluded its annual strategic review of the business, part of which involved a comprehensive market review.

“As part of this process, the business made the decision to prioritise its more advanced offshore projects and opportunities across Asia and in European waters in the near term, and as a result, Mainstream has scaled back its focus on the US market.

“Mainstream still views the US as an attractive offshore wind market and the business remains open to prospects there in the future,” the developer told Recharge.

Ireland-based Mainstream – owned by Norway’s Aker Horizons – last year bowed out of the California lease auction despite having spent years developing a floating wind project for the Humboldt wind energy area off the state’s northern coastline.

The developer, which is led by CEO Mary Quaney, also withdrew from Japan's burgeoning floating wind sector, Recharge revealed earlier.

Instead, it said it will focus on advancing a 21.7GW global pipeline spanning onshore and offshore wind and solar, including big projects off the British and Irish isles.

Mainstream is a major shareholder in pioneering floating platform developer Principle Power, and is co-developing a 1.8GW array off Scotland awarded last year.

The Biden administration last year launched its Floating Wind Shot, a national initiative to drive down the levellised cost of energy (LCOE) for the sector by 70% to enable deployment of 15GW by 2035.

Mainstream had also responded to a request for interest (RfI) by the Bureau of Ocean Energy Management (BOEM) last year with a floating wind proposal for the Gulf of Maine in the US Northeast Atlantic coastline.

BOEM, the lead regulator of energy development in federal waters, is ramping leasing efforts in the Gulf of Maine in anticipation of an auction in 2025.

The move to quit the US market comes as the global industry anticipates huge tax breaks and other incentives in the nation’s landmark Inflation Reduction Act.

The administration of President Joe Biden has set a national offshore wind goal of 30GW by 2030, while state procurement targets total some 51GW, according to industry advocate American Clean Power Association.

Mainstream saw losses skyrocket in 2022, reaching €556m on €155m in revenue, according to parent Aker Horizon's first quarter earnings presentation.

This year's first quarter revenue was up 40% in annual comparisons to €44m, while losses slowed to €46m.