U.S. Offshore Wind Fleet Faces Major Challenges
A recent study by the Government Accountability Office (GAO) reveals that approximately 80% of the U.S. offshore wind fleet consists of Jones Act-compliant vessels, while the remaining 20% are foreign-flagged ships. The report highlights significant hurdles for U.S. vessel owners, including regulatory uncertainty, limited shipyard capacity, and stiff foreign competition. These challenges threaten the growth of the offshore wind industry, which is crucial for meeting renewable energy goals.
Key Findings of the GAO Report
The GAO’s analysis focused on three major offshore wind projects: Vineyard Wind off Massachusetts, Coastal Virginia Offshore Wind, and Revolution Wind off Rhode Island. The study found that the typical vessel composition for these projects was 80% U.S.-flagged and 20% foreign-flagged. The report noted that over 300 unique vessels were involved in the construction of these projects, employing a similar number of domestic and foreign mariners. The reliance on foreign vessels is primarily due to their specialized nature, for which there are no U.S. counterparts.
Despite the growth of the Jones Act-compliant fleet during the Trump and Biden administrations, the second Trump administration’s shift in offshore energy policies has created uncertainty. Vessel owners have expressed concerns about investing in new offshore wind vessels due to three main challenges: industry and regulatory uncertainty, limited shipyard capacity, and competition from foreign vessels. The GAO’s report, submitted to the House Committee on Transportation and Infrastructure, outlines these constraints in detail.
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Challenges Facing U.S. Vessel Owners
The report identifies three significant barriers to the expansion of the U.S. offshore wind fleet. First, industry and regulatory uncertainty has been exacerbated by a pause in permitting and approvals initiated by the Trump administration in January 2025. This has left the timeline for future projects unclear, making it difficult for vessel owners to justify investments in new vessels.
Second, the GAO highlights the limited capacity of U.S. shipyards to construct specialized offshore wind vessels. As of August 2025, only five shipyards in the U.S. were capable of building these vessels, and costs are significantly higher than in countries like China, Singapore, and Turkey. Vessel owners reported that constructing an offshore wind vessel in the U.S. can be more than double the cost compared to foreign shipyards.
Lastly, U.S. vessel owners face intense competition from foreign operators, who benefit from government subsidies that can cover up to 25% of construction costs. This allows foreign companies to offer lower prices, making it challenging for U.S. operators, who must contend with higher labor and operational costs. For instance, U.S. mariners can earn around $10,000 per day, while their foreign counterparts may earn only $2,000 per day.
Despite these challenges, some U.S. companies, such as Dominion Energy and Great Lakes Dredge and Dock Company, are investing in domestically built installation vessels. They anticipate that these vessels will provide significant efficiencies in offshore wind construction. However, industry experts warn that without a clear pipeline of future projects, these potential efficiencies may not be realized.
