New York State on Friday stalled three major offshore wind-energy projects after General Electric Vernova GE.N changed the turbine design, which the state said "materially altered" the plans.
New York provisionally approved the projects in October 2023. They are Attentive Energy One being developed by TotalEnergies, Rise Light & Power and Corio Generation; Community Offshore Wind, which is backed by RWE and National Grid Ventures; and Vineyard Offshore's Excelsior Wind.
But since then, GE Vernova decided to move from its 18 megawatt Haliade-X turbine platform to a smaller turbine.
This caused "technical and commercial complexities" for the developers, the New York State Research and Development Authority said in a statement that announced it would not sign final contracts.
"Given these developments, no final awards will be made," NYSRDA said, adding it will "look to advance a future competitive solicitation."
The problem is the latest hit to U.S. offshore wind energy development, which is an important component of climate plans by President Joe Biden and numerous U.S. states.
Supply chain problems and rising interest rates over the past year have forced project cancellations and billions of dollars in writedowns by major developers.
Vineyard Offshore spokesperson Andrew Doba said the developer planned to continue to bid on new projects.
GE Vernova said it aimed to continue working with New York, offshore developers and others to quickly scale offshore wind, and touted its alternative.
“...We believe our technology will better position the industry to create jobs, and strengthen the supply chain for the next chapter of offshore wind in New York and beyond," the company said in a statement.
Offshore wind industry group Oceantic said the news was disappointing, but it "will not impact the market’s overall fundamentals."
Adrienne Esposito, executive director of the Citizens Campaign for the Environment, said: "Is it a bump in the road? Yes,...but we are still going to get there."
(Reuters - Reporting by Nichola Groom, Laila Kearney, Timothy Gardner and Nicole Jao; Editing by Chris Reese and Cynthia Osterman)