The primary-ever US offshore wind public sale within the Gulf of Mexico noticed only one bid at the moment – right here’s why it was fairly a catastrophe.
The three leases off Texas and Louisiana that the Bureau of Ocean Power Administration (BOEM) auctioned at the moment have the potential to generate about 3.7 gigawatts (GW) of unpolluted energy to energy practically 1.3 million properties — however just one Lease space there was a single bid.
German firm RWE, one of many world’s largest builders of offshore wind generators, has gained the rights to the 102,480 hectare offshore wind lease in Lake Charles, Louisiana, for a value of US$5.6 million. In accordance with BOEM, the Lake Charles leasehold has the potential to generate 1.24 GW of offshore wind capability and supply renewable vitality to just about 435,400 properties.
The Lake Charles lease is situated 44 miles off the Louisiana coast and has water depths of 33-82 toes (10-25 meters). RWE’s mission is anticipated to be operational within the mid-2030s, topic to allowing deadlines.
Sam Eaton, CEO of RWE Offshore Wind Holdings, stated in a press release emailed to Electrek that RWE participated within the offshore wind public sale within the Gulf of Mexico as a result of it was a chance “to get into the offshore enter the Gulf wind business to proceed working with companions.” to assist form this rising market.”
Eaton added that “the area is well-positioned to bolster its expert vitality workforce and world-class provide chain, unleashing a brand new financial engine.” The state of Louisiana has a purpose of putting in 5 GW of offshore wind energy by 2035 , and likewise has current coastal port and provide chain infrastructure.
Nonetheless, not one of the 15 firms that certified for the Gulf of Mexico public sale bid on Galveston I and Galveston II off Texas.
Electrical energy costs are low within the Southeast and Texas has no state insurance policies to help offshore wind growth. The truth is, some lawmakers are downright hostile:
Biden’s wind bondoggle jeopardizes the practically $900 billion financial influence of delivery channels and can destroy grid frequency on our grid. They made a nasty plan worse by shifting it nearer to Galveston Island. So I’ll resubmit the invoice to cease it
— Mayes Middleton (@mayes_middleton) July 27, 2023
Texas additionally has no plans to require utilities to buy offshore wind energy. And at a time when, for instance, a number of proposed offshore wind farms within the North East are dealing with challenges from rising value inflation, authorities help is essential.
In response to at the moment’s public sale, Liz Burdock, President and CEO of the Enterprise Community for Offshore Wind stated:
At this time’s public sale outcomes present the necessary function authorities coverage performs within the growth of the offshore wind market.
The community stays absolutely dedicated to offshore wind vitality within the Gulf, supporting our members in constructing a sturdy provide chain that’s already vital to constructing a brand new American vitality business.
Learn extra: Regardless of headwinds, offshore wind energy will see ‘large’ progress by 2032 – report
Photograph and map: RWE
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