Massive US offshore wind investment as South Koreans plan $680m factory
Site in Virginia expected to start operations by end of 2027
South Korea’s LS Cable & System has selected Chesapeake, Virginia, for a new $680m submarine power cable manufacturing facility, among the largest standalone offshore wind-related supply chain investments thus far in the US.
President Joe Biden’s administration has set ambitious growth targets through 2050 for the emerging industry, which will require a vertically integrated supply chain that includes domestic production capability to support future offshore arrays and electric grids.
“This cutting-edge facility underscores our dedication to advancing technology and engineering. It will not only bolster our capacity to meet the increasing global demand for submarine power cables but also establish us as a leader in the industry,” said LS Cable & System CEO Bon-Kyu Koo.
The facility alongside the Elizabeth River is expected to hire over 330 employees and begin operations by the end of 2027.
In March, subsidiary LS GreenLink USA was awarded $99m in investment tax credits under Section 48C of the Inflation Reduction Act (IRA), the landmark climate law signed by President Joe Biden in August 2022.
The so-called Qualifying Advanced Energy Project Credits are available for three categories of investments. In this case, Chesapeake qualified as a new clean energy manufacturing facility.
Governor Glenn Youngkin also approved a $13.2m grant for the project. Additionally, LS GreenLink is eligible for state benefits from The Port of Virginia Economic and Infrastructure Development Zone Grant Programme, which is designed to provide companies with incentives to locate new maritime-related “employment centres” that promote port growth.
Youngkin said the investment will showcase his state “as a leader in offshore wind industry in manufacturing.”
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