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U.S. Department of Transportation prioritises funding for offshore wind vessels

4C Offshore | Tom Russell
By: Tom Russell 28/06/2022 The U.S. Department of Transportation
The U.S. Department of Transportation’s (DOT’s) Maritime Administration (MARAD) announced the designation of offshore wind vessels as Vessels of National Interest making them eligible for financial support through the Title XI Federal Ship Financing Program (Title XI). This designation aims to prioritise applications for review and funding through Title XI. 

The Title XI program assists the domestic shipbuilding industry by providing support for U.S. shipyards to modernise their facilities, to build and retrofit vessels, and to assist U.S. shipowners cost-effectively purchasing new domestically produced vessels. It can provide a full faith and credit loan at longer terms and a lower interest rate than traditional private loans. DOT stated that the Title XI has provided $9.3 billion in loan guarantees to date. 


The Title XI statute was amended in 2019 to add the authority to designate Vessels of National Interest. Such a designation informs and encourages shipbuilders and shipowners that DOT/MARAD will prioritise and expedite applications for loan guarantees for offshore wind related vessels. 

The approximate subsidy available for Title XI is $35.5 million, as of March 2022. Based on the average risk for projects MARAD previously guaranteed this amount of subsidy could support approximately $475 million in new loan guarantees.  
“From modernizing our ports to investing in the U.S. shipbuilding industry to educating the next generation of mariners who will help advance these wind projects,” said Deputy Transportation Secretary Polly Trottenberg. “U.S. DOT is helping create both a strong domestic supply chain and a robust U.S. offshore wind industry to help bring costs down for American families and build a clean energy future.” 


“We’re excited that some American shipyards have already secured contracts to build vessels to service offshore wind developments,” said Maritime Administrator Ann Phillips. “By growing this industry, we further support essential offshore wind installations, and continue to add jobs and strengthen our important domestic industrial base, including our shipyards and shipbuilding industry.” 


This announcement follows the White House meeting with numerous governors from the East Coast to
announce the new Federal-State Offshore Wind Implementation Partnership that will accelerate the offshore wind industry.



For more information on installation and maintenance of major offshore wind farm components, click here.

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