US begins Gulf of Mexico offshore wind leasing process despite auction letdown and Trump doubts
American renewables heavyweight Invenergy and solar firm Hecate sparked interest in windy acreage off Texas outside of designated areas
The US Bureau of Ocean Energy Management (BOEM) announced it is kickstarting wind leasing in areas in the Gulf of Mexico off Texas amid solar firm Hecate and renewables heavyweight Invenergy's competitive interest.
The zones some 25 miles (40 km) east of Galveston are outside wind energy areas (WEAs) previously designated by BOEM for leasing but within the general region earmarked for development.
“The Gulf of Mexico remains an attractive option for offshore wind energy development,” said Gulf of Mexico regional director Jim Kendall. “We are excited about the future of this emerging sector in the region.”
BOEM made the announcement after confirming that both Hecate and Invenergy met financial, legal, and technical qualifications to participate in an offshore wind lease auction.
Chicago-based Hecate has developed over 11GW of solar and storage projects and has a pipeline of 40GW but has no experience in offshore wind.
Invenergy, likewise based in Chicago, has developed over 30GW of capacity across a range of renewables and natural gas projects, and with energyRE is driving the 2.4GW Leading Light offshore wind array to New Jersey.
Regional doubts
Despite the region’s vaunted offshore oil and gas supply chain of steel fabricators and shipyards and thousands of experienced workers, sector interest has been hindered by relatively low wind speeds and concern over hurricanes.
Lack of demand in the Gulf Coast states is likewise a challenge, with Louisiana the only Gulf coast state to set a target for 5GW of capacity, while Texas has expressed opposition to sector development.
The election of offshore wind critic Donald Trump is another hurdle. Trump has vowed to stop offshore wind development on day one of his second term and is widely expected to slow leasing while promoting the oil & gas sector.
BOEM said that it expects to hold the leasing round in 2026, in the middle of Trump's term.
Long term prospect
Supporters see long term potential in Gulf offshore wind, though.
The US Gulf is home to large industrial sector of oil refineries, chemical plants and fertiliser-makers that consume around 70% of total US hydrogen supply while generating huge emissions and is seen as a prime candidate for decarbonisation.