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US floats offshore wind auctions in New England, Oregon, with 18 GW of potential

Highlights

First two of up to 12 offshore wind auctions

Both expected to require floating wind farms

  • Author
  • Garrett Hering
  • Editor
  • Rocco Canonica
  • Commodity
  • Crude Oil Electric Power Energy Transition Natural Gas Upstream

The US Interior Department on April 30 announced two proposals for offshore wind energy auctions in federal waters off the coast of Oregon and in the Gulf of Maine, touting the potential for roughly 18 GW of new renewable energy development.

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"We're taking decisive action to catalyze America's offshore wind industry and leverage American innovation to provide reliable, affordable power to homes and businesses, all while addressing the climate crisis," Interior Secretary Deb Haaland said in a statement.

The Gulf of Maine and Oregon auctions, to be managed by the Interior Department's Bureau of Ocean Energy Management (BOEM), are the first two of up to 12 offshore wind energy auctions that Haaland announced April 24 as part of a five-year lease plan. That plan raised concerns among offshore oil and gas stakeholders, who argued the schedule could create uncertainties for renewables and fossil industries because the Inflation Reduction Act links leasing schedules for offshore oil and gas to wind.

"As we move forward with offshore wind energy in Oregon and the Gulf of Maine, the Bureau of Ocean Energy Management remains dedicated to close collaboration with our government partners and key stakeholders," said BOEM Director Elizabeth Klein.

The proposed lease sales in the Gulf of Maine include eight areas encompassing nearly 1 million acres offshore Maine, Massachusetts and New Hampshire, enough for approximately 15 GW, according to the agencies. The proposed sales off the southern Oregon coast include 194,995 acres in the Coos Bay Wind Energy Area and the Brookings Wind Energy Area.

Floating offshore wind farms

Both the Oregon and Gulf of Maine areas are anticipated to require floating wind farms, which would support the Biden administration's goal of adding 15 GW of floating offshore wind energy capacity to the US grid by 2035. The White House has a broader target of deploying 30 GW of offshore wind by 2030.

"BOEM's combined announcement solidifies two new regional markets for floating offshore wind, balancing the development of this industry sector across both coasts," Liz Burdock, CEO of industry advocacy group Oceantic Network, said in a statement. "New lease areas in Oregon will support a further buildout of the West Coast's regional supply chain, adding strength to California projects. And in the Gulf of Maine, this new 15 GW potential will drive the creation of a floating offshore wind supply chain on the East Coast."

"Providing new lease areas for offshore wind power development creates the pathway to cleaner power, more jobs, and a stronger and more reliable electric grid," added Anne Reynolds, vice president for offshore wind at the American Clean Power Association.

The agency is seeking comment through July 1 on the proposed lease areas and conditions, including size and location, as well as impacts on the fishing industry and tribes. BOEM also is seeking feedback on credits for bidders who commit to workforce training programs and development of domestic supply chains.

In addition, the agency released a draft environmental assessment for the areas in Oregon. Comments will be accepted through May 31.