The U.S. Department of the Interior has unveiled proposal for a second offshore wind energy auction in the Gulf of Mexico, which would cover four areas offshore Louisiana and Texas.
Totaling 410,060 acres, the next Gulf of Mexico offshore wind auction would have the potential to secured clean power for 1.2 million homes.
With the new proposed sale, the Bureau of Ocean Energy Management (BOEM) is seeking feedback on various aspects of the proposed lease areas, including size, orientation, and location of the four lease areas and which areas, if any, should be prioritized for inclusion or exclusion from this lease sale.
BOEM is also seeking comment on potential lease revisions to include the production of hydrogen or other energy products using wind turbine generators on the lease.
Also, BOEM is considering lease stipulations to ensure that communities, particularly those which are historically underserved, are considered and engaged early and often throughout the offshore wind energy development process. Proposed bidding credits include funding for fisheries compensatory mitigation and workforce development.
Using multiple-factor bidding, BOEM is proposing to conduct simultaneous auctions for each of the four lease areas. It also added it would use its new auction software for enhanced efficiency, with minor adjustments to auction rules used in previous offshore wind lease auctions.
If BOEM decides to proceed with the auction, the next step would be publication of a Final Sale Notice.
“Today’s announcement is another step forward in the Biden-Harris administration’s pursuit of building a clean energy future and permitting 30 GW of offshore wind energy capacity by 2030. We are taking action to jumpstart America’s offshore wind industry and using American innovation to deliver reliable, affordable power to homes and businesses, while also addressing the climate crisis,” said Secretary Deb Haaland.
Since the start of the Biden-Harris administration, the U.S. Department of the Interior has approved the nation's first six commercial scale offshore wind projects, held four offshore wind lease auctions – including a record-breaking sale offshore New York and the first-ever sales offshore the Pacific and Gulf Coasts, initiated environmental review of 12 offshore wind projects, and advanced the process to access and establish additional Wind Energy Areas in Oregon, Gulf of Maine and the Central Atlantic.
Welcoming the announcement, Erik Milito, National Ocean Industries Association (NOIA) President, said: “Announcing the second Gulf of Mexico proposed notice of sale today underscores the importance of ongoing lease sales across all energy segments. The crucial outcome of October's Gulf of Mexico wind lease sale was the awarding of the first lease.
"Consistent lease sales, including for oil and gas and wind energy, are essential for maintaining a steady flow of energy production. Periods of inactivity in lease sales only serve to heighten uncertainty and risk pushing investment dollars overseas. Sustaining regular lease sales ensures energy continuity, fosters economic growth, and keeps the United States competitive in the global energy market.
"The need for regular, and increased, oil and gas and wind lease opportunities has never been greater. In our forward-thinking industry, securing new leases is vital for exploring and developing resources crucial to our nation. We applaud BOEM's announcement and urge Congress to continue bipartisan efforts in legislating offshore lease sales for both oil and gas and wind energy at regular intervals."