Wind turbine manufacturer withdraws from $200 million Portsmouth project

Siemens Gamesa, a Spanish wind turbine manufacturer, has decided to discontinue plans for a $200 million project at Portsmouth Marine Terminal in Virginia. The project, announced in 2021 to build an offshore blade facility, was ultimately canceled due to the company’s inability to meet development milestones. This decision impacts the creation of 310 jobs that were expected to be generated by the facility. Despite the setbacks, both Siemens Gamesa and Dominion Energy remain committed to fulfilling their obligations for the Dominion wind farm off the Virginia Beach coast.
The cancellation of the manufacturing project brings challenges for the U.S. offshore wind industry, which has been experiencing setbacks due to inflation, rising costs, and supply chain issues. Siemens Gamesa’s parent company, Siemens Energy, has also faced struggles related to wind turbine parts failures and offshore wind production. Despite this setback, leaders of the Hampton Roads Alliance and Port of Virginia remain optimistic about the offshore wind industry’s future in the region, emphasizing the potential for logistics hubs and the attractiveness of the area to other major offshore wind suppliers. The decision by Siemens Gamesa also eliminates the need to relocate an existing container yard at the Port of Virginia. Overall, while this particular project has been canceled, the region continues to see recent successes and investments in offshore wind projects, keeping the industry moving forward in a positive direction.

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