Thursday, July 20, 2023

GoM wind energy lease sale Aug. 29

The U.S. Department of the Interior announced July 20 it will hold the first-ever offshore wind energy lease sale in the Gulf of Mexico on Aug. 29. 

The areas to be auctioned on Aug. 29 by the Bureau of Ocean Energy Management (BOEM) have the potential to generate approximately 3.7 GW and power almost 1.3M homes with clean, renewable energy. 

“The Gulf of Mexico is poised to play a key role in our nation’s transition to a clean energy future,” said BOEM Director Elizabeth Klein. 

The lease sale follows the Biden administration’s third approval, earlier in July, of a commercial-scale, offshore wind energy project in the U.S. and is part of the leasing path announced in 2021. 

This marks a "significant milestone in the advancement of the U.S. offshore wind sector," said National Ocean Industries Association (NOIA) President Erik Milito. 

"The Gulf of Mexico has long been esteemed as a premier offshore energy hub, spearheading the way with low-carbon barrels of oil," he continued. "This achievement underscores the region’s history of unwavering innovation and leadership."

The final sale notice, to be publish in the Federal Register on July 21, includes a 102,480-acre area offshore Lake Charles, La., and two areas offshore Galveston, Texas.

The FSN provides detailed information about the final lease areas, lease provisions and conditions, and auction details. It also identifies qualified companies who can participate in the lease auction. Details on the FSN, along with a map of the area can be found on BOEM’s website. (Work Boat 07/20/23)

Earlier this year, the Interior Department announced the proposed sale notice for offshore wind energy development in the Gulf of Mexico. During the 60-day comment period, BOEM received comments on several lease stipulations that supported BOEM’s commitment to engage with underserved communities, ocean users and other stakeholders. Some of these stipulations, which are part of the FSN, include:

  • Bidding credits to bidders who commit to supporting workforce training programs, developing a domestic supply chain for the offshore wind energy industry,
  • Bidding credits for establishing and contributing to a fisheries compensatory mitigation fund or contributing to an existing fund to mitigate potential negative impacts to commercial and for-hire recreational fisheries caused by offshore wind energy development in the Gulf of Mexico, and
  • Requiring that lessees provide a regular progress report summarizing engagement with Tribes and ocean users potentially affected by proposed offshore wind energy activities.

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