Offshore wind developer US Wind has surrendered its Sparrows Point manufacturing lease to defense contractor Anduril Industries, shelving plans to build turbine components as its controversial Ocean City wind farm remains tied up in legal and regulatory battles.
SPARROWS POINT, MD — A major offshore wind manufacturing project planned for Maryland’s waterfront is being shelved as US Wind gives up its industrial property at Sparrows Point, clearing the way for a $6.6 billion submarine manufacturing operation backed by President Donald Trump’s administration.
The Baltimore-based offshore wind developer has relinquished its lease at Tradepoint Atlantic, where it planned to build a factory producing massive steel foundations and towers for offshore wind turbines.
The site will instead be developed by Anduril Industries, a defense technology company that announced plans Tuesday, October 6, to construct a two-million-square-foot submarine component manufacturing facility.
The announcement comes as US Wind’s proposed offshore wind development near Ocean City continues to face legal challenges, federal permitting uncertainty and opposition from the coastal community.
US Wind gives up manufacturing plans amid mounting delays
US Wind had planned to transform part of the former Bethlehem Steel industrial complex into Sparrows Point Steel, a major manufacturing operation serving offshore wind developments along the East Coast.
The facility was expected to manufacture monopile foundations, towers and other heavy steel components used to support offshore wind turbines.
The proposed operation was also expected to create hundreds of manufacturing jobs.
But the project never reached commercial production, and the Trump administration withdrew $47.4 million in previously awarded federal funding for the manufacturing facility in 2025.
US Wind CEO Jeff Grybowski acknowledged the company’s offshore wind ambitions remain delayed by legal disputes and federal regulatory uncertainty.
“Our offshore wind plans, like many other similar projects in the U.S., are delayed due to legal disputes and uncertainty created by federal agencies,” Grybowski said in a statement Tuesday.
“So, we are shifting our focus to helping Anduril build a state-of-the-art manufacturing facility at Sparrows Point.”
The decision was first reported Wednesday by Maryland Matters.
Trump announces $6.6 billion submarine manufacturing project
The property will now become part of Anduril Industries’ Arsenal-2 project, a new manufacturing complex intended to increase production of components for the U.S. Navy’s Virginia-class nuclear-powered attack submarines.
President Trump visited Sparrows Point on Tuesday to announce the project, which includes $3.7 billion in private investment from Anduril and a Navy contract worth up to $2.9 billion tied to production milestones.
According to the official announcement from Anduril Industries, the facility will produce submarine components such as torpedo tubes, with plans to expand its manufacturing capabilities.
The facility is expected to begin production in 2030.
Anduril estimates the investment will create more than 3,100 permanent jobs and support approximately 14,000 direct and indirect jobs in Maryland.
“Sparrows Point helped build the fleet that won World War II,” Anduril CEO Brian Schimpf said.
“With Arsenal-2, Anduril will return large-scale shipbuilding to a site that can once again define American naval power.”
Ocean City offshore wind project faces uncertain future
US Wind’s manufacturing withdrawal comes as the company’s proposed Maryland Offshore Wind Project remains under scrutiny.
The development would place offshore wind turbines in federal waters off the coast of Ocean City, with a planned generating capacity of up to 2,000 megawatts.
The project received federal approval during the Biden administration in 2024, but Ocean City officials subsequently challenged the authorization in court.
Following Trump’s return to the White House, federal agencies indicated they would reconsider the project’s approval, creating another legal obstacle for the developer.
The loss of the Sparrows Point manufacturing site does not automatically cancel the offshore wind development itself. US Wind retains its offshore wind ambitions, although no clear construction timetable has emerged.
For opponents of the project, the manufacturing announcement represents another significant setback for the proposed wind farm.
Maryland officials welcome replacement investment
Maryland Gov. Wes Moore welcomed Anduril’s investment despite the loss of the proposed wind manufacturing operation.
According to the Maryland governor’s office, the submarine project represents the largest single private investment announced in the state’s history and its largest job-creation initiative in more than a decade.
“This massive new project will deliver the largest private investment and create the most jobs in Maryland in over a decade,” Moore said.
Baltimore County Executive Kathy Klausmeier also praised the decision to return large-scale industrial manufacturing to Sparrows Point, where generations of workers once produced steel and built ships.
The new facility is projected to generate more than $2 billion in annual economic activity, according to state estimates.
Offshore wind advocates criticize federal policies
Clean-energy advocates expressed disappointment over the disappearance of the proposed wind manufacturing facility.
Rebecca Rehr, director of climate policy and justice at the Maryland League of Conservation Voters, criticized the Trump administration’s treatment of the offshore wind industry.
“Maryland faces rising energy demand and electricity bills,” Rehr said. “We have been consistently disappointed that the Trump administration doesn’t see the value across the supply chain for the clean energy industry.”
Liz Burdock, president and CEO of offshore wind trade organization Oceantic Network, said the move demonstrated how companies originally serving offshore energy projects could redirect their manufacturing capabilities toward other maritime industries.
For US Wind, the immediate priority is no longer constructing turbine components at Sparrows Point.
The industrial site once designated for offshore wind manufacturing will now be used to expand America’s submarine production capacity, while the company’s proposed Ocean City wind project continues navigating an uncertain regulatory future.