During an investor day in New York, executives of General Electric’s energy spin-off, GE Vernova, announced on Wednesday their anticipation of resolving a substantial backlog in offshore wind equipment, totalling approximately $4 billion, within the next two years.
This development suggests enhanced market conditions for the struggling sector.
“[The equipment backlog] will meaningfully convert to revenue over the next two years,” said GE Vernova CEO Scott Strazik.
Strazik added, “We will only add to that backlog with meaningfully better economics and terms than what is in our backlog today.”
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GE Vernova Wind CEO Vic Abate said, “We’re encouraged by the market.”
“When you look at the tailwinds and offshore, I would say there’s a reset underway,” Abate added.
GE’s offshore wind business posted $1.1 billion in losses in 2023.
Strazik stated that GE Vernova intends to leverage the $265 billion energy transition market to enhance margins within the struggling onshore wind sector and to strengthen profits in its gas power business.
He informed investors that the energy transition market will expand from its current $265 billion to at least $435 billion by 2030.