The exponential growth of offshore wind power will be the main driver of a nine-fold increase in demand for ocean space by the middle of the century, according to a new report.
The Ocean’s Future to 2050 report forecasts that by midcentury, offshore wind will require ocean space which is the equivalent to the landmass of Italy. The growth will be particularly pronounced in regions with long coastlines and presently have low penetration of offshore wind. Demand for ocean space is set to grow 50-fold in the Indian Subcontinent and 30-fold in North America.
The rise of wind will be pivotal to the transformation of the Blue Economy. Currently, 80 percent of capital expenditure (capex) in the Blue Economy is invested in the offshore oil and gas sector, but by 2050 that number will have dropped to 25 percent. By then, offshore wind will receive the largest investments, accounting for half of all capex.
The decreasing prominence of oil and gas will be largely responsible for capex inflows into the Blue Economy being less in 2050 than today, whilst operating expenditure will increase below GDP growth, according to the report. The Blue Economy will be more focused on Asia with Greater China set to account for more than a quarter of capex by 2050 as it builds out its offshore wind capacity and marine aquaculture.
According to Remi Eriksen, Group President and CEO of DNV, the firm that published the report:
“The Blue Economy is entering a period of sectoral and geographic diversification. Currently, the regions which benefit most from the ocean in economic terms are those with access to oil and gas fields off their coastlines. But as the world decarbonizes and the need for renewable energy grows, countries not able to be part of the age of fossil fuel can be part of the age of wind.”
Read the full report here.