US to lease Central Atlantic wind acreage holding more than 6GW

The round is the first of four expected this year as the Biden administration ramps efforts to meet 2030 goals

Deb. US Interior Secretary Deb Haaland.
Deb. US Interior Secretary Deb Haaland.Photo: US Department of Interior

President Joe Biden’s administration announced its final sales notice (FSN) for acreage in the Central Atlantic holding at least 6.3GW of offshore wind capacity, enough to power 2.2 million homes to meet the growing clean energy demands of MidAtlantic states.

“Across America’s coasts, we continue to see excitement and momentum for the Biden-Harris administration’s pursuit of a clean energy future,” said Interior Secretary Deb Haaland.

“We are taking action to jumpstart America’s offshore wind energy industry and using American innovation to deliver reliable, affordable power to homes and businesses, while also addressing the climate crisis.”

Offshore energy regulator Bureau of Ocean Energy Management (BOEM) is overseeing the nation’s pursuit of the Biden goal of 30GW of capacity by 2030, a target widely held to be out of reach even as industry momentum ramps.

“We are excited to announce this sale and underscore our commitment to explore additional areas in the Central Atlantic for potential offshore wind energy development,” said BOEM director Elizabeth Klein.

“BOEM will continue to work with all ocean users to ensure offshore wind energy proceeds in an environmentally responsible manner.”

The FSN will be published in the Federal Register, the nation’s journal of record, on 1 July, with the sale slated for 14 August.

“Today’s Central Atlantic FSN marks clear progress towards building a robust regional supply chain that will deliver jobs to places like Coastal Virginia, North Carolina, and Baltimore,” said Liz Burdock, CEO of industry group Oceantic Network.

“Opening up these new areas, along with the next three lease auctions planned for this year, will support an already-developing pipeline that is putting Americans to work while nurturing tens of billions in new investments and manufacturing expansion across the nation,” she added.

Three additional lease sales are proposed for this year, including in, the Gulf of Mexico in September and the Gulf of Maine and off the Pacific Northwest state of Oregon, both in October.

The administration has slated 12 leasing rounds to 2028 even as Biden's campaign struggles with mounting skepticism of his age-related cognitive abilities and inflation-fuelled economic concerns.

BOEM has ramped project approvals with eight construction and operations plans already greenlighted and two projects under construction, with a third, Orsted’s 132MW South Fork, completed and feeding power to New York’s grid.

Leasing plans

 The Central Atlantic auction will offer leasing in two WEAs covering some 278,000 acres with the potential to power some 2.2 million homes, said BOEM.

A-2 covers 101,443 acres and is located 30 miles (48 km) from Delaware Bay separating Delaware from New Jersey. Area C-1 encompasses 176,505 acres about 40 miles from the mouth of Chesapeake Bay off Virginia.

A third WEA, the 78,000-acre B-1, was covered under the environmental assessment approved earlier this month but was not included in the final lease sale due to conflicts with the Department of Defence (DoD) and Nasa, both of which operate in the area.

BOEM is in discussions with DoD and Nasa “to determine whether their activities could co-exist with wind energy development,” the regulator said, adding that the area could be included in a subsequent lease sale in the region.

Growing demand

Demand for offshore wind is growing in the US MidAtlantic and South.

Maryland has one of the nation's most ambitious mandates of 8.5GW by 2031, despite losing 1GW of capacity with Orsted’s withdrawal of its Skipjack arrays. The state currently has two projects by US Wind totalling 1GW.

Virginia needs an additional 3GW on top of its 2.6GW Coastal Virginia Offshore Wind array already under construction to meet its 5.6GW by 2034 requirement.

North Carolina has an executive target of 8GW by 2040, but has done little to implement the industry.

Delaware has yet to sign on to sector development, but offshore wind legislation is being considered in the state assembly.

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Published 28 June 2024, 16:24Updated 28 June 2024, 17:35
AmericasUSCentral AtlanticDeb HaalandElizabeth Klein