The Coastal Virginia Offshore Wind project, the United States’ most ambitious offshore wind energy endeavor, has reached the two-thirds completion mark. However, Dominion Energy, the project’s developer, is grappling with challenges posed by tariffs and setbacks related to their newly acquired vessel, which threaten their commitment to staying “on-time and on-budget.”

During a recent earnings call held on Halloween, Dominion’s chairman, president, and CEO, Bob Blue, addressed investors, highlighting that steel tariffs have further escalated the total cost of the project. The Coastal Virginia Offshore Wind installation, located 27 miles off Virginia Beach, is now estimated to cost $11.9 billion, marking an increase of over 21% from its original budget.

The timely completion of this renewable energy source is also at risk. Blue disclosed that the Charybdis, a $715 million turbine installation vessel acquired for the project, remains unfit for deployment, adding to the project’s challenges.

The on-time delivery of the new power source is also now in jeopardy, with Blue revealing the new $715 million turbine installation vessel the company purchased, Charybdis,, is still not ready to go to work.

Blue remains hopeful the 2.6 gigawatts of energy the farm is to produce will be flowing the grid by late next year. But he is frustrated.

“I’m extremely disappointed that Charybdis has again not met expectations,” Blue told investors. “I recognize the importance of executing consistently against any commitment, and we failed to deliver regarding Charybdis.”

The mammoth ship, built by Seatrium AmFELS of Brownsville, Texas, arrived to the Portsmouth Marine Terminal in September.

It is the first Jones Act-compliant wind turbine installation vessel, meaning it was built in America, flagged in America, crewed by Americans and owned by an American-based company. The Jones Act, among other things, makes it so only U.S.-flagged vessels can transport merchandise between U.S. points.

While the Belgium-based heavy-lift vessel Orion has been able to legally place the 176 25-story tall cylindrical bases into the ocean floor, Charybdis will need to carry and install the turbines.

While all major systems are operating well, Blue said there are still a “variety of quality assurance level items” that need to be addressed. He did not go into specifics.

“It’s become clear that while the ship’s design and construction methods are consistent with global best practices, we didn’t properly account in our timing estimate for the risk inherent in being the first Jones Act-compliant wind turbine installation vessel to be built and regulated in the United States,” Blue said.

He is hopeful the issues can be fixed this month. The goal is for project to deliver its first power to the grid by this spring. When complete, the 113,000-acre farm is estimated to produce 2.6 gigawatts of energy, enough to power up to 660,000 homes and avoid the carbon emissions equivalent to the removal of one million cars off the road each year.

Under an agreement struck with Attorney General Jason Miyares, ratepayers will not be on the hook for all the costs overruns.

Instead, Dominion Energy, as well as Stonepeak, their alternative investment firm financier, will also be on the hook for 50%.

The current charge to the average ratepayer for the Coastal Virginia Offshore Wind project remains between $11 to $12 per month, according to a spokesperson.