The Biden administration on Thursday announced it will hold an offshore wind energy auction in the Gulf of Mexico in August, the first such sale in the area.
The three leases are located off the Texas and Louisiana coasts. These areas have the potential to generate approximately 3.7 gigawatts (GW) and power almost 1.3 million homes, according to the U.S. Department of the Interior (DOI).
The auction, to be held by the Bureau of Ocean Energy Management on Aug. 29, will advance the Biden administration’s efforts to deploy some 30 GW of offshore wind energy by 2030 to help reach a “carbon-free electricity sector” by 2035, according to the DOI.
“Thirty gigawatts is enough to power 10 million homes, and it’ll help put us on a path to 100 percent clean energy [electricity] by 2035,” President Joe Biden said in Philadelphia on a trip to highlight the administration’s efforts to tackle what it deems as climate change driven by the use of fossil fuels.
Details of Auction
Companies will bid on the right to develop some 102,480 acres offshore Lake Charles, Louisiana, as well as two other lease areas totaling nearly 200,000 acres offshore Galveston, Texas—one comprising 102,480 acres and the other 96,786 acres.
To accelerate the growth of offshore wind, the Biden administration previously said in a Feb. 22 press release that it would provide extended tax credits under the Inflation Reduction Act and Bipartisan Infrastructure Law to bolster manufacturing and deployment.
The Gulf auction would allow for credits up to 30 percent of the cash value of the bid for workforce development, supply chain investment, and fisheries compensation funds.
According to a sale document (pdf), companies prequalified to bid at the auction include units of European energy companies Equinor, Shell, RWE, and TotalEnergies, all of which are already developing U.S. offshore wind leases. Equinor and Shell also have major oil and gas operations in the Gulf.
Newer entrants to the U.S. offshore wind industry include divisions of South Korea’s Hanwha, U.S. renewable energy developer Hecate Energy, and Houston private equity firm Quantum Capital.
The Final Sale Notice will be published in the Federal Register on July 21, and will provide detailed information about the final lease areas, lease provisions and conditions, and auction details.
Offshore winds tend to blow harder and more uniformly than on land, which means it has potential to produce significantly more energy per amount of capacity installed.
However, the Gulf’s relatively lower wind speeds, soft soils, and hurricanes are potential challenges the industry could face that are unique to the region. The U.S. Southeast also has low power prices that could make it harder for higher-cost offshore wind generation to compete for electricity contracts.
The process to identify the areas to be auctioned in the Gulf was “based on rigorous science” to “maximize operational efficiency and limit adverse interactions with other industries or natural resources,” Michael Celata, BOEM’s regional director for the Gulf of Mexico, said in an internal memo (pdf) in 2022.
Concerns
A comprehensive report (pdf) compiled in March said that building and operating offshore wind farms could majorly impact fishing and the marine environment. The report, compiled by federal agencies National Ocean and Atmospheric Administration (NOAA) and BOEM, and the Responsible Offshore Development Alliance, a coalition of fishing industry groups, said that development plans for offshore wind are outpacing the state of ocean science.
The report noted that noise, vibration, electromagnetic fields and heat transfer associated with offshore wind farms could alter the marine environment, including changing fish behavior. It also discusses other topics such as the potential for fishermen to be displaced from established fishing grounds, and how wind turbines could change oceanographic conditions.
Some opponents of offshore wind say that preparation for offshore wind farms has been responsible for the deaths of more than 30 whales and a dozen dolphins along the Mid-Atlantic coastline since December 2022.
NOAA and BOEM have both denied any link between offshore wind preparation and whale deaths.
Promise of ‘Good-Paying’ Jobs
The Gulf of Mexico is a major center in the U.S. offshore oil and gas sector. It represents about 15 percent of the United States’ annual oil production.
The National Ocean Industries Association (NOIA), which represents the offshore oil, gas, as well as wind industries, issued a statement in support of the auction and said there was “remarkable synergy between offshore oil and gas and offshore wind.”
“With the introduction of offshore wind in the Gulf Coast, numerous local companies will now have the opportunity to actively participate in the construction of new wind projects closer to home,” NOIA President Erik Milito said in a statement.
The offshore wind auction, as well as other green energy pursuits, can bring “good-paying clean-energy manufacturing jobs,” Mr. Biden said Thursday at the Philly Shipyard, where a company is having workers from multiple unions start building a first-of-its-kind vessel, called the Acadia, which will play a role in building offshore wind farms.
The Biden administration previously held three other offshore wind lease auctions. This included the first-ever such action off the Pacific coast in California, as well as the largest-ever such U.S. sale in 2022 for areas off the New York and New Jersey coasts, which attracted a record $1.5 billion in bids.
Mr. Biden said in his speech Thursday that under his administration, there’s been “more than $16 billion in new offshore wind investments, including 18 offshore wind vessels, 12 manufacturing facilities, and 13 ports.”
Scottie Barnes and Reuters contributed to this report.
Please Support These Patriotic Sponsors
Solar Power Generator Discounts Along With Free Shipping
- 10% OFF for Jackery Solar Generator 2000 Pro Series with code "JADEAL"
- 10% OFF for Jackery SolarSaga 200W Solar Panel with code "JADEAL"
- 10% OFF for Jackery Solar Generator 1500 Series with code "JADEAL"
- 10% OFF for Jackery Solar Generator 1000 Series with code "JADEAL"
- 10% OFF for Jackery Explorer 1500 Portable Power Station with code "JADEAL"
- 10% OFF for Jackery Explorer 1000 Pro Portable Power Station with code "JADEAL"
- 10% OFF for Jackery Explorer 500 Pro Portable Power Station with code "JADEAL"
- 10% OFF for Jackery Explorer 300 Pro Portable Power Station with code "JADEAL"
- 10% OFF for Jackery SolarSaga 100W Solar Panel with code "JADEAL"
The University of Georgia is represented by the Georgia Bulldogs . The Bulldogs participate in the Southeastern Conference's (SEC) Eastern Division of the NCAA.
They play their home games in the storied Sanford Stadium in Athens, Georgia. The first season in Georgia was in 1892. In 1942, 1980, and 2021, the Georgia Bulldogs won three national championships.
The Georgia Bulldogs have additionally been crowned the National Champion in four additional seasons by at least one polling organization (1920, 1927, 1946 and 1968).
The Georgia Bulldogs are tied for second place in conference history with their 15 conference titles, including 13 SEC titles, and their 59 bowl appearances, which ranks second all-time.
In addition, the program has produced five top picks in the National Football League (NFL) draft, two Heisman Trophy winners, numerous winners of various national honors, and many others.
Longhorns football represents the University of Texas in Austin often known as Texas, UT or the Texas Longhorns. The Longhorns represent the Big 12 Conference in the NCAA Division. They play in Austin, Texas, at the Darrell K. Royal-Texas Memorial Stadium.
The Texas Longhorns are ranked third and seventh, respectively, in terms of all-time wins and win-loss records, with over 900 victories and an overall win-loss percentage of.705.
The legendary program also boasts four national titles, 32 conference titles, 100 First Team All-Americans, and two Heisman Trophy winners.
Get your Texas Longhorns Revival T-Shirt today. The Texas Longhorns Rustic Revival shirt is also a fan favorite.
Many college sports fans like to wear their gear all around town, get your Texas Longhorns Centered gear and show your support.