US to launch second Gulf of Mexico offshore wind leasing round for 5GW
Proposed auction follows last year's tender that drew a disappointing result in an area known for low wind speeds and devastating hurricanes
The WEAs hold about 4.9GW of capacity, based on BOEM's conservative estimate of 3MW per square kilometre.
“Today’s announcement is another step forward in the Biden-Harris administration’s pursuit of building a clean energy future and permitting 30GW of offshore wind energy capacity by 2030,” said Interior Secretary Deb Haaland.
BOEM is an agency of the US Department of Interior.
After two rounds of bidding, German energy firm RWE paid a paltry $5.6m for the 102,480 acres (414.7 km2) Lake Charles lease area facing Louisiana, or $54/acre, the lowest price paid for offshore wind acreage in nearly a decade.
The two Galveston leases off Texas went untouched.
“BOEM is proud to play a leading role in the Administration’s clean energy efforts,” said BOEM director Elizabeth Klein.
Demand in the Gulf was suppressed by silty seabed and frequent hurricanes that contribute to higher infrastructure costs, along with lower wind speeds which require larger and more efficient turbines to cost-effectively generate energy.
Gulf offshore wind power also lacks a clear offtake route. Texas, already the US’ top renewable energy market with 40GW of onshore wind and 17GW of solar, showed little interest in procuring the relatively pricy power.
Yet the Gulf is also home to a massive offshore oil & gas sector that faces an uncertain future as BOEM is restricting extraction sales.
The IRA mandates at least one offshore oil & gas auction within one year of an at-sea wind energy round. The three potential petroleum lease sales will enable BOEM to meet the Biden administration’s goal of seven offshore wind auctions by 2025.
BOEM is also advancing offshore wind in Oregon, Gulf of Maine and Central Atlantic.
BOEM said it is considering lease stipulations to ensure that impoverished and underserved communities “are considered and engaged early and often throughout the offshore wind energy development process” and has proposed bidding credits to fund fisheries compensatory mitigation and workforce development.