There was just one bid within the first-ever US offshore wind public sale within the Gulf of Mexico at this time – right here’s why it was a little bit of a washout.

The three lease areas off Texas and Louisiana that the Bureau of Ocean Vitality Administration (BOEM) auctioned at this time have the potential to generate round 3.7 gigawatts (GW) of fresh energy for nearly 1.3 million households – however just one lease space had a single bid.

Germany’s RWE, one of many world’s largest offshore wind builders, gained the rights to the 102,480-acre Lake Charles, Louisiana, offshore wind lease space with a successful bid of $5.6 million. The BOEM says that the Lake Charles lease space has the potential to generate 1.24 GW of offshore wind power capability and energy practically 435,400 houses with renewable power.

The Lake Charles lease space is 44 miles off the Louisiana coast, and it has water depths of 33-82 toes (10-25 meters). RWE’s venture is anticipated to be in operation by the mid-2030s, contingent upon allowing timelines.

Sam Eaton, CEO of RWE Offshore Wind Holdings, stated in an announcement emailed to Electrek that RWE bid within the Gulf of Mexico offshore wind public sale as a result of it’s a chance to “enter the Gulf’s offshore wind business on the floor ground to proceed to work with companions to assist form this nascent market.”

Eaton added that “the area is effectively positioned to bolster its expert power workforce and world-class provide chain to unlock a brand new financial engine.” The state of Louisiana has set a aim to put in 5 GW of offshore wind by 2035, and it additionally has current coastal port and provide chain infrastructure.

Nevertheless, not one of the 15 firms that certified to bid within the Gulf of Mexico public sale provided on Galveston I and Galveston II off Texas.

The Southeast has low energy costs, and Texas doesn’t have state coverage that helps offshore wind improvement. In truth, some lawmakers are downright hostile:

Neither is Texas entertaining any plans to require utilities to purchase energy from offshore wind. And at a time when a number of deliberate offshore wind farms within the Northeast, for instance, are being challenged by rising value inflation, state assist is significant.

In response to at this time’s public sale, Liz Burdock, president and CEO of the Enterprise Community for Offshore Wind, stated:

In the present day’s public sale outcomes present the necessary function state public coverage performs in offshore wind market improvement.

The Community stays absolutely dedicated to offshore wind within the Gulf and to supporting our members forming the sturdy provide chain that’s already instrumental to constructing out a brand new American power business. 

Learn extra: Regardless of headwinds, offshore wind will see ‘huge’ progress to 2032 – report

Photograph and map: RWE

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