Wind

US proposes blockbuster 18GW floating wind lease sales in Gulf of Maine and Oregon

Proposed auctions in deepwater areas further Biden administration's 15GW Floating Wind Shot, but will face fierce opposition from fisheries and Tribes

. Oregon governor Tina Kotek.
. Oregon governor Tina Kotek.Foto: Oregon Governor's Office
US Offshore Wind Editor, Recharge

The US Department of the Interior (DoI) on Tuesday proposed floating wind lease sales in the Atlantic Gulf of Maine and the Pacific Northwest state of Oregon holding some 18GW of total capacity.

“Today's announcement represents another stride in our commitment to building a greener energy future while creating jobs and supporting families,” said Interior Secretary Deb Haaland.

“We're taking decisive action to catalyse America's offshore wind industry and leverage American innovation to provide reliable, affordable power to homes and businesses, all while addressing the climate crisis.”

Offshore energy regulator Bureau of Ocean Energy Management (BOEM) under the DoI is proposing to auction eight leases in the Gulf of Maine totalling over 1 million acres (4,047km2) holding some 15GW.
. Proposed leases in Gulf of Maine.Foto: Bureau of Ocean Energy Management
The regulator is putting forward two lease areas off Oregon, one facing Coos Bay and the other in the Brookings wind energy area (WEA) totalling 194,995 acres (789km2) with 3GW of capacity, enough to power more than 1 million homes.
“As we move forward with offshore wind energy in Oregon and the Gulf of Maine, BOEM remains dedicated to close collaboration with our government partners and key stakeholders,” said BOEM director Elizabeth Klein.

Deepwater development

All of the leases are in deep waters and will require floating wind platforms, furthering President Joe Biden’s administration’s Floating Wind Shot initiative to deploy 15GW by 2035 while slashing costs from around $200/MWh to $45/MWh.

“BOEM's combined announcement solidifies two new regional markets for floating offshore wind, balancing the development of this industry sector across both coasts,” said Liz Burdock, CEO of trade group Oceantic Network.

“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 15GW potential will drive the creation of a floating offshore wind supply chain on the East Coast,” Burdock added.

Analysts expect the Gulf of Maine to see far more interest than the Oregon for several reasons.

The region has an average depth of some 149 metres, within the range of current technologies already deployed by Norwegian state energy giant Equinor in its Hywind projects.

The Oregon WEAs are in waters averaging nearly 1,000 metres, creating technical hurdles for the nascent sector.

“We have the technology for 200-metre floating; its already up and running,” said Signe Sorensen, senior wind energy analyst for the Americas for Danish intelligence consultancy Aegir Insights.

“Compared to California and Oregon, its more straightforward to develop,” she told Recharge.

Load demand

More significantly, the nearest lease in the Gulf of Maine is some 40 miles (64 km) east of Cape Cod, Massachusetts, and proximity to load centres and states with strong policy support for offshore wind should drive demand.

Oregon lacks substantial load centres, and while the Brookings lease could feed California, the grid in the north of the Golden State remains undeveloped and will likely require massive investment just to meet the needs of its 1.7GW Humboldt WEA.

“In the context of the entire lease pipeline, I see the Gulf of Maine as one of the relatively more attractive areas,” Sorensen said.

Both regions already face stiff opposition from fisheries and tribes, and Oregon governor Tina Kotek, a renewables supporter, has urged BOEM to slow down the process to enable more dialogue among competing stakeholders and ocean users.
The proposed lease sales follow Secretary Haaland’s announcement last week of 12 auctions through 2028, including four this year.
BOEM earlier proposed a second Gulf of Mexico auction for up to 5GW, while the Central Atlantic wind energy area (WEA) is currently undergoing environmental assessment with lease sales expected this year.
The proposed sales notices for the two auctions will be published in the Federal Register, the nation's journal of record, on 1 May, initiating a 60-day comment period.
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Published 30 April 2024, 17:14Updated 30 April 2024, 17:14
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