The next-generation offshore wind turbine is expected to be in the 5-7 megawatt range, which would make it one of the most powerful wind turbines in the world capable of producing clean, renewable energy at a much reduced cost compared with traditional energy sources.
The US generates some 6300MW a year of electricity using onshore wind power but has not focused on offshore wind power development because of the greater expense involved.
However, the DOE has said offshore development on the northeast coast of the US is an attractive alternative because electricity costs are high and transmission line construction faces many obstacles.
The offshore wind turbine being designed in conjunction with GE is expected to produce electricity at a cost of about US5c per kilowatt-hour, or 52% less than the current US9.5c per hour.
"Wind is one of our most important renewable energy resources and this [project] will allow us to use our resources more extensively and effectively," acting assistant secretary for energy efficiency and renewable energy Douglas Faulkner said.
While Europeans have some experience with offshore wind energy projects, the department said they have been in sheltered, shallow water sites.
However, US offshore locations with sufficient wind resources do not match the developed European sites and will require the application of technologies that have yet to be explored or seriously considered in Europe, especially those that will allow development in deeper waters, which may have greater wind, wave and ice loading, the DOE said.
Numerous environmental, political and regulatory hurdles in the US also need to be overcome before significant development can get underway.
The Department of Energy will share about $US8 million of the project's cost and its National Renewable Energy Laboratory in Colorado will oversee the project.