Mar 30, 2023
Brazil’s Offshore Wind Push Is at Risk as Global Manufacturing Gets Squeezed
(Bloomberg) -- Brazil’s plans to become an offshore wind leader will run into headwinds unless Latin America’s biggest economy rapidly expands its supply chain, according to an industry group.
Spare manufacturing capacity for the global wind industry is likely to disappear by 2026, according to a report released this week by the Global Wind Energy Council. The trend could be worsened by policies in the US and Europe to move manufacturing away from China.
If Brazil invests in new facilities now it can tap its vast offshore wind potential and become an equipment supplier to both domestic and regional markets, while averting supply chain disruptions, Ben Backwell, the group’s chief executive officer, said in an interview.
China is the clear leader in wind turbine components, while Latin America has just 4% of global of manufacturing capacity, mainly in Brazil. The region is behind in offshore wind facilities, and the Global Wind Energy Council said there are no firm plans to assemble offshore nacelles, a key component that houses the generating equipment.
Read More: Wind Power Growth Sputters as China Takes Top Supplier Spot
“Brazil needs a bold green industrialization plan, which will allow it to quickly start installing offshore wind, produce green hydrogen, and scale up its industrial supply chain,” said Backwell. “The window of opportunity is narrowing and the clock is ticking.”
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