INSIGHT: Trump’s moratorium on federal wind projects may have little effect on epoxy

HOUSTON (ICIS)–The moratorium on federal permits for wind projects will likely have little effect on the US industry and on the epoxy resins it consumes because most turbines are built on private land.

Wind turbines make up a fast-growing market for epoxy resins. They also consume unsaturated polyester resins (UPR) and lubricants.

The moratorium on federal wind permits was among the numerous orders that US President Donald Trump issued on his first day in office.

The effect on the moratorium will likely be small, since only 5% of utility-scale wind capacity is generated by turbines on federal land, according to the US Department of the Interior.

Some of this may be attributed to the share of wind power installed in Texas, most of which is private and not owned by the federal government.

Out of the 150 gigawatts (GW) of installed US wind energy, more than 41GW was in Texas as of 2023, according to a report issued by the Ernest Orlando Lawrence Berkeley National Laboratory.

Out of the new wind capacity installed in 2023, 1.3GW out of 6.5GW was installed in Texas, the report said.

Expansion of wind energy has been supported by a federal production tax credit, according to the report, and Trump did not rescind that tax credit in his executive order.

State policies also support wind energy, and those policies should continue regardless of the executive orders.

The trend that is slowing down the wind industry is high interest rates. Those, as well as interconnection and siting, helped make 2023 the lowest in terms of installed capacity since 2014, according to the report.

LARGE PIPELINE FOR OFFSHORE WIND PROJECTS
The US has a large pipeline of possible offshore wind projects, with 932 megawatts (MW) under construction, according to a 2023 report from the Department of Energy. Another 1,100MW off capacity have received local permits and federal approval of its construction and operational plan.

Nearly 21GW are in the permitting stage, but it is unclear whether these offshore projects will need any federal permits. State jurisdiction of submerged lands can extend out to three or nine nautical miles, depending on whether the land is under the Atlantic or Pacific ocean or whether it is under the Gulf of Mexico.

Offshore wind capacity totaled only 42MW, making up a tiny share of total US capacity, according to the 2023 report.

TRADE GROUP OPPOSES MORATORIUM
Despite the small number of wind projects on federal land, the American Clean Power Association (ACP) spoke out against the moratorium.

“ACP strongly opposes blanket measures to halt or impede development of domestic wind energy on federal lands and waters. The contradiction between the energy-focused executive orders is stark: while on one hand the administration seeks to reduce bureaucracy and unleash energy production, on the other it increases bureaucratic barriers, undermining domestic energy development and harming American businesses and workers,” the group said.

“For too long, we have witnessed careening policy restrictions on the development of energy resources on our nation’s vast federal lands. Regardless of administration, ’some of the above’ strategies are not good energy policy. No nation can achieve energy dominance absent consistent policy that moves beyond the idea that energy systems have partisan character,” the ACP said.

The paltry amount of wind power installed on federal land hides its potential. Federal lands have the potential to produce 875GW of land-based wind energy, according to a report issued in 2025 by the National Renewable Energy Laboratory (NREL).

If the most stringent siting constraints are assumed, then federal land could produce 70GW of land-based wind.

Europe provides another illustration of the potential growth for wind power. It has 278GW of power capacity, with 243GW onshore, according to Wind Power, a trade group. Capacity should grow by 22GW/year from 2024-2030.

The trade group Epoxy Europe estimates that wind energy consumes 40,000 tonnes/year of the epoxy resins produced by its members.

DETAILS ON THE MORATORIUM
Under one of his executive orders, Trump requested that the government conduct a review of federal wind leasing and permitting policies.

Until the government completes that review, no new or renewed approvals, rights of way, permits, leases or loans will be issued for onshore or offshore federal wind projects by the Secretary of the Interior, the Secretary of Agriculture, the Secretary of Energy, the administrator of the Environmental Protection Agency (EPA) and the heads of all other relevant government agencies.

Moreover, the government will not lease the Outer Continental Shelf (OCS) for wind projects.

Existing wind leases in the OCS will be reviewed to determine if they should be amended or terminated because of ecological, economic and environmental reasons.

The government will review the future of defunct and idle wind turbines and issue a report that require their removal.

Trump also ordered that the Secretary of the Interior impose a temporary moratorium on the Lava Ridge wind project, which is being developed by Magic Valley Energy in the state of Idaho. It would have up to 400 turbines and produce more than 1GW.

Magic Valley Energy is a subsidiary of LS Power.

Insight article by Al Greenwood

(Thumbnail shows wind turbines. Image by Jon Santa Cruz/Shutterstock)