3 Companies Banking on U.S. Offshore Wind
Although offshore wind power projects have been operating in Europe since the early 1990's, the U.S. has been slow to embrace the idea of massive turbines in its oceans. The situation has changed rapidly over the past few years, however, and states like Massachusetts, Virginia, and New York have put sizable mandates in place to speed up construction of the projects.
Avangrid (NYSE: AGR), Dominion Energy (NYSE: D), and Equinor (NYSE: EQNR) are companies that have been partnering with states to build offshore wind farms and operate them for decades, potentially lining up a new revenue source. The companies will be among the first to own offshore wind farms in the US if the projects proceed as planned. The extent of the profit margin for the projects remain uncertain, however, as the all-in costs to build offshore wind projects remain higher than their land-based counterparts.
Image source: Getty Images.
Source Fool.com
