Momentum for offshore wind?

The demise of Massachusetts energy company Cape Wind LLC earlier this year raised serious questions about the future of offshore wind in the United States.

But the momentum Cape Wind helped spur for more than a decade could be picking up steam.

Deepwater Wind LLC is erecting five wind turbines in waters near Block Island. Barring any setbacks, the project would bring 30 megawatts of energy online next year, becoming the first-ever offshore wind farm in the United States.

But beyond the Block Island project there are other signs around the region that the nascent U.S. industry could be poised for growth.

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“We’re described as the Saudi Arabia of wind, here in New England,” said Douglas N. Hales, professor of supply-chain management in the school of business at the University of Rhode Island.

He says the Block Island project, if successful, is a good start. But he believes there must be an expansion of Deepwater’s work, or a large, successful project operating off the Cape Cod coast to effectively prove the model.

“New England is going to be an experiment,” he said.

Deepwater hopes its demonstration project will lead to public support and regulatory approval for a much larger project of up to 200 turbines off the Rhode Island coast.

DONG Energy, a Danish company, would also like to play a part in the experiment. Earlier this month it announced plans to build a wind farm that could be as large as 1,000 megawatts, located about 15 miles south of Martha’s Vineyard, as large as Deepwater Wind’s future 200 turbine project. The large European energy company, with 2014 revenue of $9.7 billion, currently runs 14 offshore wind farms. It has indicated the U.S. market has become “a significant area for future development.”

And General Electric Co. recently finalized a $10.6 billion acquisition of the wind-energy unit of the French company Alstom, which is providing the turbines for Deepwater’s Block Island project. Last week, GE announced a new renewable energy business, focused specifically on wind energy.

“Offshore wind is a challenging industry, but we believe the market has real potential,” said Anders Soe-Jensen, president and CEO of GE’s new offshore-wind unit.

Through its acquisition of Alstom, GE is now partnered with Deepwater. GE is building a temporary assembly facility on Berth 6 at the Port of Providence. The work is expected to be completed by next year.

The Northeast is well-positioned for further growth because of its strong, consistent offshore wind, according to Hales.

Of course, significant regulatory hurdles face any company that wants to test the waters regionally.

But Hales thinks New England remains the best hope for a U.S. offshore wind-energy industry.

“If it’s going to work, it’s going to work in New England,” Hales said. •

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