Investors are so far shying from taking the plunge into floating wind.
Why it matters: The future of offshore wind on America's West Coast hinges on cutting-edge platforms that float atop the sea — and the cash needed to build them.
Catch up fast: The waters off California are far deeper than those off the East Coast. That requires newer, expensive floating turbine designs.
The latest: Global venture and private equity investors put $72.5 million into floating wind and solar startups last year, per PitchBook data.
- That's a fraction of the capital raised in 2021 and 2020.
Reality check: This remains a nascent space with relatively few deals — a couple dozen each of the past few years.
What's happening: Developers of conventional offshore wind turbines, which are planted in shallower seafloors, are already dealing with major quality control problems and cost challenges.
- Those issues have soured some investors on offshore wind companies.
Plus: The market chill of the past two years made investors even more cautious around capital-intensive startups.
What we're watching: The U.S. Department of Energy last year held the country's first auction for floating offshore wind sites, off California.
- Earlier this year the DOE announced steps to fuel further private investment, particularly through R&D.
Be smart: That support in such a quiet sector may spell startup opportunity — if founders can win over investors.
Of note: The levelized cost of energy for floating offshore wind is about $207 per MWh — nearly three times the $75 per MWh for fixed offshore turbines, per the DOE.
