(Image Credit: IMAGN) January 18, 2021; Block Island, RI; If the Revolution Wind project becomes reality, there will be more wind turbines like these — which are off Block Island. Mandatory Credit: Sandor Bodo/The Providence Journal-USA TODAY NETWORK
Humboldt County, California – The future of Humboldt County’s burgeoning offshore wind industry has been thrown into question following significant layoffs at RWE and Vineyard Offshore, two major energy companies spearheading the development of commercial-scale floating wind farms along the North Coast. These workforce reductions stem from escalating market uncertainties, particularly in the wake of policy changes impacting offshore wind development in the United States.
RWE Offshore Wind Services, LLC, in a recent regulatory filing, confirmed its decision to reduce its U.S. offshore wind workforce. Company spokesperson Ryan Ferguson disclosed that “close to 100 people” have been laid off, including personnel involved in the Canopy Offshore Wind project planned for the Humboldt Wind Energy Area.
“Last year we announced that, due to market conditions and increased risk profile, we would delay certain expenditures related to our US offshore wind development projects,” RWE stated. “With the current regulatory and political environment, we have made the decision to reduce the scope of our development activities and the size of our US Offshore team. As RWE, we remain committed with our US business to advancing energy projects that meet rising energy demand, create jobs, and invest in communities.”
The precise number of local Humboldt County employees affected by the layoffs remains unclear. Attempts to contact ten individuals associated with the Canopy Offshore Wind project resulted in several notifications that the employees’ mailboxes were no longer active, indicating the widespread nature of the cuts.
Adding to the industry’s woes, Vineyard Offshore also announced workforce reductions late last month, cutting 50 positions in the U.S. and Europe. Some affected employees were reassigned to other international ventures. Vineyard Offshore spokesperson Kathryn Niforos reiterated the company’s commitment to offshore wind but acknowledged the necessity of streamlining operations in the face of “recent market uncertainties.”
“Vineyard Offshore believes that offshore wind is a vital part of the nation’s future energy independence,” Niforos stated. “Our projects will provide over 6 gigawatts of reliable and affordable energy to meet growing energy needs on the east and west coasts, while creating thousands of jobs and fueling economic growth. In an effort to position our projects for sustainable long-term success we have made the difficult decision to reduce our current team size in light of recent market uncertainties. We look forward to continuing to advance these transformative American energy projects in the years ahead.”
Despite these setbacks, local officials are maintaining a degree of optimism. Chris Mikkelsen, executive director of the Humboldt Bay Harbor, Recreation and Conservation District, emphasized the district’s dedication to the Offshore Wind Heavy Lift Marine Terminal Project planned for the Samoa Peninsula.
“The District remains focused and optimistic about the development of the proposed heavy-lift marine terminal and our ability to provide facilities that support key state and federal government initiatives while maintaining a focus on our local values and people,” Mikkelsen said.
The layoffs have triggered concerns about the region’s ability to capitalize on the promising offshore wind sector, which was expected to bring significant economic benefits and job creation to Humboldt County. The uncertainty surrounding federal policy and market conditions poses a considerable challenge to the long-term viability of these projects.
These mass layoffs, and project slowdowns, create a ripple effect, impacting not just the companies directly involved, but also local businesses, educational institutions providing related training, and the community at large, which had anticipated significant economic stimulation. The local community has been preparing for the emergence of the industry, so these layoffs will be disruptive.
The future of the Humboldt County offshore wind industry is now heavily dependent on the trajectory of federal energy policy and the broader economic landscape. As market uncertainties persist, stakeholders will be closely monitoring developments to assess the potential impact on the region’s energy sector and economic prospects.
