Following the completion of the fifth offshore wind lease sale during the Biden-Harris administration, the Department of the Interior announced the results of the Bureau of Ocean Energy Management (BOEM) wind energy auction for two leases off the coast of the states of Delaware, Maryland and Virginia. The sale – the first in the region in a decade – resulted in two preliminary winners and a bid volume of $92.65 million.
“When the administration began, our country had zero offshore wind projects approved. Today, we have nine – enough to power nearly 5 million homes. This is what a clean energy transition looks like,” said Interior Secretary Deb Haaland. “Together, we are showing that in partnership with states, tribes, ocean users, and industry, we can build an entirely new and sustainable industry that will continue to meet our country’s growing needs well into the future, while creating good-paying jobs and helping to mitigate the threat of the climate crisis.”
Since the beginning of the Biden-Harris administration, the department has approved the nation’s first nine commercial offshore wind projects, held five offshore wind lease auctions, conducted a record-breaking sale off the coast of New York and the first-ever sales off the Pacific and Gulf coasts, and advanced the process of establishing additional wind energy districts in Oregon and the Gulf of Maine.
Earlier this year, Haaland announced a timeline for additional lease sales through 2028. To date, the department has approved more than 13 GW of clean energy from offshore wind projects — enough to power nearly 5 million homes. The department has also taken steps to build a sustainable offshore wind industry by encouraging the use of project labor contracts, improving workforce training, strengthening a domestic supply chain, and increasing collaboration with tribes, fisheries, communities, and ocean users.
“From day one, the Biden-Harris administration has boosted the offshore wind industry – from creating new opportunities across the supply chain to expanding potential projects into new waters off our shores. Today’s lease sale reflects the forward momentum we are seeing to bring clean energy to millions of American homes and create good-paying climate jobs,” said Ali Zaidi, White House national climate adviser. “With nine commercial-scale projects approved in the last three years and more pending, we are using every tool available to grow America’s offshore wind industry while strengthening the nation’s power grid and addressing the climate crisis.”
Equinor Wind US has provisionally won lease OCS-A 0557 for $75,001,001. That is 101,443 acres and about 26 nautical miles (nm) from the Delaware Bay. Virginia Electric and Power Co has provisionally won lease OCS-A 0558 for $17,650,500. That is 176,505 acres and about 35 nautical miles from the entrance to the Chesapeake Bay. Six companies participated in the auction.
“Today’s lease sale is an important milestone in meeting the East Coast’s clean renewable energy needs,” said BOEM Director Elizabeth Klein. “BOEM remains committed to the responsible development of offshore wind energy in the Mid-Atlantic region to avoid, reduce or mitigate potential impacts on other ocean users and the marine environment, while strengthening local economies.”
Today’s sale resulted in bidder credits totaling over $23 million. These bidder credits will result in over $11 million in investments in workforce training and the domestic supply chain, and an additional $11 million in fisheries offsets. In addition, the lease terms require the lessees to use all reasonable efforts to enter into a project labor agreement covering the construction phase of all projects for the leased lands; develop tribal, agency and fishery communications plans; and submit semi-annual reports on engagement with tribes and communities.
The leases awarded today do not grant the right to build or operate an offshore wind facility. Rather, a lease grants the right to submit a project plan for review by BOEM. BOEM will prepare an Environmental Impact Statement (EIS) to analyze the specific impacts of all project proposals before making decisions on approving a proposed construction and operation plan. Environmental Impact Statements would be prepared in consultation with tribes and appropriate government agencies and supplemented by input from stakeholders, marine users and the public.
BOEM will also continue to convene the Central Atlantic Intergovernmental Renewable Energy Task Force to explore and identify potential additional areas for future offshore wind leases. These ongoing intergovernmental efforts include a June 2024 Memorandum of Understanding outlining joint work by the Biden-Harris administration and the State of Maryland to evaluate additional areas offshore Maryland that could become wind energy areas and support the development of offshore wind projects.
News article from the Bureau of Ocean Energy Management
Filed under: News, Offshore Wind, Projects
