Following the completion of the fifth offshore wind lease sale held during the Biden-Harris administration, the Dept. of the Interior announced the results from the Bureau of Ocean Energy Management’s (BOEM) wind energy auction for two lease areas offshore the states of Delaware, Maryland and Virginia. The sale — the first in the region in a decade — resulted in two provisional winners and $92.65 million in winning bids.

“At the start of the Administration, our nation had approved zero offshore wind energy projects. Today, we have nine — enough to power nearly 5 million homes. This is what developing a clean energy transition looks like,” said?Sec. of the Interior Deb Haaland. “Together, we are demonstrating that, in partnership with states, Tribes, ocean users and industry, we can build an entirely new and sustainable industry that will meet the growing demands of our nation far into the future, while creating good-paying jobs and helping mitigate the threat of the climate crisis.”

Since the start of the Biden-Harris administration, the department has approved the nation’s first nine commercial scale offshore wind projects, held five offshore wind lease auctions, a record-breaking sale offshore New York and the first-ever sales off the Pacific and Gulf Coasts and advanced the process to establish additional Wind Energy Areas in Oregon and the Gulf of Maine.

Earlier this year, Haaland announced a schedule of additional lease sales through 2028. Thus far, 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 grow a sustainable offshore wind industry by encouraging the use of project labor agreements, strengthening workforce training, bolstering a domestic supply chain and through enhanced engagement with Tribes, fisheries, communities and ocean users.

“Since day one, the Biden-Harris administration has turbocharged the offshore wind industry — from creating new opportunities up and down the supply chain, to expanding potential projects to new waters across our coasts. Today’s lease sale reflects the forward momentum we are seeing to power millions of American homes with clean energy and create good-paying, climate jobs,” said Ali Zaidi, White House national climate advisor. “With nine commercial-scale projects approved in the last three years and more to go, we are using every available tool to grow the American offshore wind industry as we strengthen the nation’s power grid and tackle the climate crisis.”

Equinor Wind US provisionally won Lease OCS-A 0557 at $75,001,001, which is 101,443 acres and is approximately 26 nautical miles (nm) from Delaware Bay. Virginia Electric and Power Co provisionally won Lease OCS-A 0558 at $17,650,500, which is 176,505 acres and is approximately 35 nm from the entrance of Chesapeake Bay. Six companies participated in the auction.

“Today’s lease sale represents a major milestone in meeting the demand for clean renewable energy along the East Coast,” said BOEM Director Elizabeth Klein. “BOEM remains committed to responsible offshore wind energy development in the Central Atlantic region in a manner that avoids, reduces or mitigates potential impacts to other ocean users and the marine environment while growing local economies.”

Today’s sale resulted in over $23 million total bidding credits. These bidding credits will result in over $11 million in investments for workforce training and domestic supply chain and an additional $11 million for fisheries compensatory mitigation. In addition, lease stipulations require that the lessees make every reasonable effort to enter into a project labor agreement covering the construction stage of any project for the lease areas; develop communication plans for Tribes, agencies and fisheries; and provide semi-annual reports on engagement activities with Tribes and communities.

The leases awarded today do not authorize the construction or operation of an offshore wind facility. Rather, a lease provides the right to submit a project plan for BOEM’s review. BOEM will develop an Environmental Impact Statement (EIS) to analyze the specific impacts of any project proposals before making decisions on whether to approve a proposed construction and operations plan. The EISs would be prepared in consultation with Tribes and appropriate government agencies, and informed by input from stakeholders, ocean 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 leasing. These ongoing intergovernmental efforts include a June 2024 memorandum of understanding that outlines joint work by the Biden-Harris administration and the State of Maryland to evaluate additional areas off Maryland’s shores that could become wind energy areas and support the development of offshore wind projects.

News item from the Bureau of Ocean Energy Management

Filed Under: News, Offshore wind, Projects