The Hanwha Group’s brave move to buy into an old-fashioned US shipyard that needs a vast capital commitment may prove to be an astute strategy.

Overseas companies must still operate within the constraints of the US Jones Act but many developers have set up US subsidiaries to procure a share in widescale fleet replacement and offshore wind development.

The Make American Shipbuilding Great Again (MASGA) project could yet show signs of life if Hanwha shows it can be done, and the offshore wind sector could be the proving ground. Others may follow if they conclude that the country’s Merchant Marine Act of 1920, the ‘Jones Act’, may no longer be a major brake on ship design innovation and technology development.

South Korea’s Hanwha Group spent US$100 million on acquiring what is now known as the Hanwha Philly Shipyard in 2024. But this is a tiny fraction of the US$5 billion that the company is in the process of investing in modernising the facility, introducing latest technologies, and streamlining production processes.

That capacity could well be required with consultant Wood Mackenzie, in a recent report, pointing out that US offshore wind is, “delivering faster project execution than previously forecast, with 6GW expected online by 2027”.

Wood Mackenzie’s view is all the more surprising after a court challenge to Washington’s order to stop work on five offshore wind projects last year. Judges have, however, recently ruled against the government order, allowing work to continue.

An early April deadline for the US Interior Department to appeal has now passed and so development of Sunrise Wind, Vineyard Wind, Coastal Virginia Offshore Wind, South Fork Wind, and Revolution Wind, are back on track, at least for the moment.

According to the consultant, Avangrid’s Vineyard offshore wind farm installed 624MW, in 2025, that saw a 261% increase in US offshore wind capacity and subsequently achieved mechanical completion in Q1 2026.

Other projects include Revolution Wind and Coastal Virginia Offshore Wind (CVOW), which have both achieved first-power milestones and are progressing through construction. Ørsted's North America construction programme is delivering results, with Revolution Wind on track for commissioning in the second half of this year and Sunrise accelerated to the second half of 2027 from the first six months of 2028. 

More legal challenges may come in future, but the events of recent weeks suggest that offshore wind will definitely be back on the US energy agenda.

However, more than 60% of the country’s offshore wind resources lie in deep and challenging waters where construction vessels, service operation vessels, and crew transfer craft, must incorporate the latest safety and technologically advanced design features.

These are likely to include a whole range of technologies that have, so far in the US, been limited to naval applications. They include large powerful battery banks and advanced electrification systems to supplement main and auxiliary engine power; DP2 positioning systems; walk-to-work motion-compensated gangways that neutralise ship motions and provide a stationary link between service vessels and the floating foundation; and dynamic hoist systems that use laser sensors.

A number of specialist technology providers have already set up US subsidiaries enabling them to compete for a slice of the action. Examples include Ampelmann, which provides motion compensating gangways, electric power systems provider GE Vernova, offshore technology provider Kongsberg, Ming Yang Smart Energies, electrical specialist Siemens, and wind turbine provider Vestas.

Substantial offshore construction expertise will be required from countries including Germany, Japan, the Netherlands, Norway and the UK. US developers will be looking for the naval architects and system designers with experience of wind operations in hostile waters such as the North Sea, the Baltic Coast, and the North Atlantic coast.

“Supply-chain and cost pressures remain elevated, with turbine prices 22% higher than early 2022 levels. US land-based wind capital expenditure is projected to increase by 5% through 2029, driven by tariff exposure on raw material inputs and subcomponents, permitting obstacles and uncertainty over future volumes,” noted Wood Mackenzie.

However, the consultant believes that tax credit rules are now clearer following the passage of the One Big Beautiful Bill Act (OBBBA), and later guidance from the Internal Revenue Service has reduced some near-term uncertainty.