[33]. forum between 11 East Coast governors and administration officials. As the United States burgeoning offshore wind industry has dominated headlines and begun putting steel in the water along the Eastern seaboard, it has done so thanks in no small part to the equipment, know-how, and experience of the oil and gas services industries throughout the Gulf Coast. On February 22, 2023, the Department of the Interior announced a proposed offshore wind lease sale for three proposed lease areas in the Gulf of Mexico off the coasts of Galveston, TX, and Lake Charles, LA. The world recorded its hottest day ever on Thursday, breaking previous highs set on Monday and Tuesday as global average temperatures continue to climb, according to data from the U.S. National Centers on Environmental Prediction. BOEM graphic. Offshore wind contracts increased 36 percent last year, the majority of which went to U.S. firms, according to the report. The Gulf of Mexico area includes approximately 30 million acres of federal lands on the Outer Continental Shelf and covers areas in what is . Rather, the advent of offshore wind in the GOM is better described as an all-of-the-above approach, as Rep. Zeringue of Louisiana has described in the context of the recent bill opening Louisiana state waters to wind leasing: This is going to augment and support the oil service industry oil and gas industry that are primed to be able to take advantage of this new technology. Two of the offshore wind turbines, which have been constructed off the coast of Virginia Beach, Va., are seen, June 29, 2020. Darrell Proctor is a senior associate editor for POWER (@POWERmagazine). Outer Continental Shelf energy and mineral resources did not provide a power capacity estimation. What challenges/questions does your company envision regarding its entry/role into the U.S. wind industry? during periods of peak demand. So far, only two commercial projects have BOEMs green light: the 800-MW Vineyard Wind 1 projectoffshore Massachusetts and the130-MW South Fork Wind projectoffshore New York. RFI was followed by a call for information and nominations issued in November 2021. On February 24, 2023, the Bureau of Ocean Energy Management (BOEM) published a Proposed Sale Notice (PSN) in the Federal Register that includes three proposed lease areas in the Gulf of Mexico for offshore wind development. Axelrod warns Cornel West bid could tip election to Trump, Do Not Sell or Share My Personal Information. [18], A green hydrogen market could be a huge boon for Louisiana and Texas and provide new opportunities for the existing oil and gas midstream service sector given the number of chemical plants, the potential for hydrogen fuel cell truck transportation on the Interstate 10 corridor, redundancy/backup for utility power generation, alternative/renewable fuel for powering marine terminal/port infrastructure and cold ironing vessels in port, and use as a marine fuel to meet upcoming maritime carbon emission restrictions as well as investment/market-based ESG initiatives. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Activists want to disqualify Trump from ballot in key states under 14th Trump in Las Vegas speech attempts to rally voters against DeSantis: Hes China is in default on a trillion dollars in debt to US bondholders. The deadlines for the BFF and conceptual strategy will be announced in the FSN. The second draft WEA, an area of review of about 188,023 acres is located approximately 56 nm off the coast of Lake Charles, Louisiana. In the midst of all this activity, the largest permitted project to date Vineyard Wind off the coast of Massachusetts, being developed by Avangrid Renewables and Copenhagen Infrastructure Partners has commenced onshore construction and will begin offshore construction/installation next spring. Tray Smith. Authors. Floating wind turbines have been deployed on a limited scale in Europe, but not at grid-scale (although the technology for floating is rapidly advancing). Combined, the draft WEAs cover 734,668 acres, and BOEM suggests they have the potential to power 3.1 million homes. The Area ID process is a required step under the renewable energy competitive leasing process and is used to identify Wind Energy areas (WEAs) to be considered for leasing, it said. A major offshore wind project off the coast of southern New Jersey has received approval for its construction, A coalition of companies working in the U.S. clean energy sector has released its latest report on the, U.S. utility Entergy and global power giant RWE are partnering to jointly assess the best means to develop, The Biden administration on Feb. 22 announced the first-ever lease sale for offshore wind power development in the, Combined, the draft WEAs cover 734,668 acres, and BOEM suggests they have the potential to power 3.1 million homes. State-led efforts were buoyed in June by the White Houses effort to establish a, federal-state offshore wind implementation partnership. With strong, consistent winds in the Gulf, offshore wind will help reduce pollution and strengthen our electric grid. Click here to learn more and get your quotes. Offshore wind opportunities in the Gulf of Mexico The sites represent a small subset of its original 30-million Gulf of Mexico call area, it said. that considered the impacts of potential offshore wind leasing in federal waters of the Gulf of Mexico. 5 min read Biden admin advances first-ever wind leasing in Gulf of Mexico amid calls for moratorium The Biden administration inched closer to. The Network looks forward to BOEMs continued work advancing the lease areas and encourage the agency to maintain the maximum potential developable acreage while it coordinates with other ocean users, Burdock said. Date: Wednesday, February 22, 2023 Contact: Interior_Press@ios.doi.gov WASHINGTON In another step by the Biden-Harris administration to grow America's clean energy economy, the Department of the Interior today is proposing the first-ever offshore wind lease sale in the Gulf of Mexico. BOEM Takes Next Step Toward 2023 Gulf of Mexico Offshore Wind Lease Just as the Cajun Mariners helped develop the modern offshore oil and gas industry [1] in the Gulf of Mexico as we currently know it, the next generation of Cajun, Texan, and other Gulf Coastal marine, oil and gas service companies have already begun applying their skills and experience to building a new renewable American energy industry in offshore wind. Americas clean energy transition is happening right here and now. Biden Proposes First Gulf of Mexico Offshore Wind Lease Sales Collectively, New York and New Jersey have set the nations largest regional offshore wind target of installing more than 16 GW of offshore wind by 2035. Support for the domestic supply chain must provide overall benefits to the domestic offshore wind industry (not the lessees project alone); result in the development of new capacity (including vessels); reduce upfront capital cost for manufacturing offshore wind energy project components; or develop a supply chain supporting such components that may be used for hydrogen production. BOEM proposes to allow each qualified entity to bid for one lease per region (Texas WEA and Louisiana WEA) and ultimately acquire one lease area per region via simultaneous auctions. National Environmental Policy Act and Offshore Renewable Energy, Youre Invited: Gulf of Mexico Proposed Wind Lease Sale Auction Seminar, https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities. The bureau promotes energy independence, environmental protection and economic development through responsible, science-based management of energy and mineral resources on the U.S. www.oedigital.com/news/495870-what-to-expect-from-the-us-offshore-wind-market-this-year, As things stand, offshore wind on the East Coast is a tangible reality, primarily because the Atlantic coast has the best/most consistent wind closest to population centers that can off-take the power. Published. Environment California State Director Laura Deehan in an statement to POWER said, California is poised to go big on offshore wind and todays announcement brings us closer to a future where we put our powerful coastal winds to work cutting pollution from homes, cars and industry and reaching our goal of 100% clean energy.. Wind energy is coming to the Gulf of Mexico Map: BOEM How ocean wind power could help the US fossil fuel industry The energy, jobs and investment opportunities from Gulf of Mexico offshore wind will be additive to the incredible benefits the offshore oil and gas sector provides our nation, NOIA President Erik Milito said in a statement. Our Standards: The Thomson Reuters Trust Principles. In the end, just as Louisianas Lenten Winds coincide with spring and new growth, the emerging offshore wind economy promises new opportunities for the Gulf Coasts existing oil and gas service industries, both at home and on the Atlantic and Pacific coasts. [27] Further, in its most recent and upcoming lease sales, BOEM has been offering a 20 percent credit/rebate to successful bidders contingent on reinvestment of those funds into workforce development, vessel construction, and supply chain buildout. Request for Interest in Commercial Leasing for Wind Power Development on the Gulf of Mexico Outer Continental Shelf (OCS) A Notice by the Ocean Energy Management Bureau on 06/11/2021 Published Document AGENCY: Bureau of Ocean Energy Management, Interior. This is the Gulf of Mexico leasing round and centred around the US portion of it; The area is well known for oil and gas production - which BOEM also administers and incumbents already engaged include European majors including Equinor Shell and BP. . What presence does your company have in the U.S. offshore wind market/supply chain currently? What funding sources/incentives (public and/or private) would be helpful? To this last point, New Orleans-based Maritime Partners, LLC is currently building a proof-of-concept true zero-emission 2000 HP inland pushboat, the HYDROGEN 1, which will be powered by methanol feed/fuel stock, processed via onboard methanol reformers, into liquid hydrogen to run hydrogen-fueled engines. UFO whistleblowers coming out of the woodwork, Putins fall could be the domino that topples the worlds autocrats, Trump claims DeSantis is desperately trying to get out of 2024 race, Remote work poses risks to physical health. Interior Department Proposes First-Ever Offshore Wind Sale in Gulf of Indeed, this potential alternative use for offshore wind was specifically incorporated into the infrastructure bill passed by Congress and signed by President Biden in late 2021. That said, there are an increasing number of these highly specialized vessels (including the largest Wind Turbine Installation Vessels (WTIVs) and Service Operations Vessels (SOVs), and Crew Transfer Vessels (CTVs)) being built in the U.S. to Jones Act compliance specifications. The proposed sale is part of the leasing path announced by the Interior Department in 2021 to meet the Biden administration's goal to deploy 30 gigawatts (GW) of offshore wind energy capacity by 2030 and follows . That report, made public this week, said that state demand for offshore wind almost doubled in 2022. In 2022, BOEM reduced the size of the two areas from their draft versions to address concerns expressed by the Department of Defense and the US Coast Guard regarding shipping, marine navigation, and military operations. Request for interest; commercial leasing for wind power development on the Gulf of Mexico OCS. However, the agency has made notable progress on planned lease sales. A final list of qualified bidders will likely be included in the FSN. The. Vineyard Wind took essentially four years to work through the permitting process (and six years total from lease sale), a pace that would not allow for the 30 by 30 goal to be reached. THE HILL 1625 K STREET, NW SUITE 900 WASHINGTON DC 20006 | 202-628-8500 TEL | 202-628-8503 FAX. By harnessing our abundance of renewable natural resources, these projects will unleash economic growth here at home andcreategood paying jobs. Additional bidders may be qualified to participate in the proposed lease auction by submitting the required qualification materials to BOEM by the end of the public comment period. The second draft WEA, an area of review of about 188,023 acres is located approximately 56 nm off the coast of Lake Charles, Louisiana. We are first in your inbox with the most important news in the industry ― keeping you smarter and one-step ahead in this ever-changing and competitive market. Together, the proposed offshore sites could power nearly 1.3 million homes, the Interior Department said. Gulf? As specific examples, the Department of Energys 2023 budget for FY 23 has allocated nearly $350 million earmarked for development of wind technologies. Gulf of Mexico Auction Seminar U.S. proposes first offshore wind auction in Gulf of Mexico New Horizons: Offshore Wind in the Gulf of Mexico and Pacific Coast for Grid Transmission and Beyond. Locating offshore wind farms near populated or industrial areas can help reduce the amount of energy sourced from non-renewable sources. The Gulf of Mexico announcement comes on the heels of the 2023 U.S. Offshore Wind Market Report, produced by the Business Network for Offshore Wind. US BOEM Proposes First Offshore Wind Auction in the Gulf of Mexico Outlook For Offshore Wind Development In The Gulf Of Mexico Biden Administration Announces First Offshore Wind Lease Sales for Gulf Key Milestone Hit Towards Potential First Ever GOM Offshore Wind Lease BOEM on Wednesday said it identified the sites following its October 2021 unveiling of the original 30-million acre Gulf of Mexico Call Area. Support for workforce training must increase the supply of fully trained personnel for offshore wind energy project development through union apprenticeships or training for project planning, design, construction, operation, and maintenance; for crewing vessels used in offshore wind energy project development; or for manufacturing project equipment components. They include aproposed sale notice for a 102,480-acre area off Lake Charles, Louisiana, and two areas near Galveston, Texas, of 102,480 and 96,786 acres. At the Department, we are taking action to jump-start our offshore wind industry and harness American innovation to deliver reliable, affordable power to homes and businesses, Interior Secretary Deb Haaland said in a statement. The FSN will announce the final details, such as the lease areas to be auctioned, the auction details and lease stipulations. Qualified bidders must submit a $2 million deposit to bid for a lease area. She lives in White River Junction, Vermont. Several projects already are being developed along the East Coast, home to the nations first-ever wind power development, the Block Island project off the coast of Rhode Island. This proposed competitive auction will be the first for the Gulf of Mexico. Published 8:14 PM PDT, February 22, 2023. first draft WEA spans 546,645 acres about 24 nautical miles (nm) off the coast of Galveston, Texas. The Biden administration, through the Bureau . US Gulf of Mexico Offshore Wind - Louisiana and Federal Updates Questions for Gulf Coast Companies to consider regarding offshore wind supply chain opportunities: About the authors Todays announcement comes after years of engagement with Tribes, other government agencies, ocean users and stakeholders, and this proposed sale notice provides another opportunity for them to weigh in on potential offshore wind leasing in the Gulf of Mexico, said Klein. Also, it should be noted that, because most developers are coming from the long-existent European offshore wind industry, they already have efficiencies/economies of scale in place with European component manufacturers, so they are somewhat apprehensive about changing their models to start using untested U.S. manufacturing sources. A shareholder in the firms Baltimore office, he can be reached at jtirone@bakerdonelson.com. Other areas of coverage include plastic pollution and international climate negotiations. On Feb. 23, BOEM held an offshore wind auction for six lease areas in the New York Bight. That said, under the Biden administrations bulked-up BOEM and other wind-centric agency improvements, the process for future projects is expected to go more quickly (but could still take at least two years [9]). Biden admin advances first-ever wind leasing in Gulf of Mexico amid Following the review, BOEM will notify a bidder if it qualifies for credits, and each particular bid will represent the sum of a monetary (cash) amount and the non-monetary factors (bidding credit(s)). BOEM refers to this as the one-per-customer rule for each region. Outer Continental Shelf energy and mineral resources did not provide a power capacity estimation. Earlier last week, BOEM published a notice of intent (NOI) to prepare a programmatic environmental review to analyze the potential impacts of wind energy development activities in the New York Bight and New Jersey. A shareholder in the firms Baltimore office, he can be reached at jtirone@bakerdonelson.com. Overview of the PSN and Forthcoming Final Sale Notice. Outer Continental Shelf. Todays announcement comes after years of engagement with Tribes, other government agencies, ocean users and stakeholders, and this proposed sale notice provides another opportunity for them to weigh in on potential offshore wind leasing in the Gulf of Mexico. However, currently announced completion dates suggest the industry will fall short of installing 30 GW of offshore wind by 2030. On January 11, 2022, the Bureau of Ocean Energy Management (BOEM) announced it is preparing a draft environmental assessment (EA) to consider potential offshore wind leasing in federal waters of the gulf. He can be reached at channan@bakerdonelson.com. Announces First Sale of Rights for California Offshore Wind Development, Outlook for North American Power Markets post IRA adoption, Maximizing the Value of Your Energy Assets: Strategies for Optimized Power Trading, Learning How to Avoid the Brain Drain - Attracting/Retaining/Training in Todays Contentious Power Environment, Over the year, 664 new organizations registered with the Business Networks. The effort will mark the first time BOEM will conduct a regional analysis containing multiple lease areas for offshore renewable energy. See here for a complete list of exchanges and delays. ACP applauds Interior Secretary Haaland and BOEM and looks forward to partnering with them to meet the ambitious but achievable goal of deploying 30 GW of offshore wind by 2030.. The agency issued a request for interest in June 2021 to gauge interest in obtaining commercial wind leases in the Gulf of Mexico Outer Continental Shelf (OCS). Interior Announces Environmental Review of Offshore Wind Leasing for One lease area is in the Lake Charles Wind Energy Area (WEA), offshore of Lake Charles . BOEM's First Two Offshore Wind Areas in the Gulf of Mexico Could Feed We are first in your inbox with the most important news in the industry ― keeping you smarter and one-step ahead in this ever-changing and competitive market. Lisa Frank, executive director of the Washington (D.C.) Legislative Office of Environment America, in a statement emailed to POWER after Wednesdays announcement, said, We have the power to run our lives entirely on clean, renewable energy from the wind and sun, and these actions by the Biden administration move us closer to that brighter future. The Department of the Interiors Bureau of Ocean Energy Management (BOEM) is responsible for Americas offshore energy and mineral resources. The announcement follows earlier administration announcements of lease sales off the East and West coasts of the U.S. Ltd. The Biden administrations push to accelerate offshore wind deployment formally expanded into the Gulf of Mexico as the Bureau of Ocean Energy Management (BOEM) on July 20 unveiled two draft wind energy areas (WEAs) off the coast of Galveston, Texas, and Lake Charles, Louisiana. What further information would be helpful to evaluate your companys potential opportunities in offshore wind? And as a result, offshore wind will not (and certainly not in the short term) be a replacement for the existing, and extremely important, oil and gas industry in the Gulf. On Feb. 22, 2023, BOEM announced its proposal for the first offshore wind lease sale in the Gulf of Mexico for areas within the WEAs. However, the Electric Reliability Council of Texas (ERCOT) estimates that 1 MW of electricity can power about 200 Texas homes during periods of peak demand. This proposed lease sale will continue the legacy of energy production in the Gulf of Mexico, providing Americans with an affordable clean energy supply. The Interior Department released a proposed sale notice for a 102,480 acre area off of Lake Charles, Louisiana and two areas near Galveston, Texas of 102,480 and 76,786 acres. Not surprisingly, several of the qualified bidders are companies that already operate oil and gas assets in the Gulf of Mexico. Michelle Lewis is a writer and editor on Electrek and an editor on DroneDJ, 9to5Mac, and 9to5Google. The East Coast projects in particular have struggled to source sufficient port space (or even space available to expand existing ports) i.e., lay down areas to accommodate the extremely large offshore wind-farm components (blades, nacelles, and monopile structures). Companies that executed leases from the Bight auction include Ocean Winds, Attentive Energy, Community Offshore Wind, Atlantic Shores Offshore Wind, Invenergy Wind Offshore, and Vineyard Mid-Atlantic. The Biden administration's push to accelerate offshore wind deployment formally expanded into the Gulf of Mexico as the Bureau of Ocean Energy Management (BOEM) on July 20 unveiled two draft . For the agenda and information on how to join the webinar, please visit: https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities. What specific answers to specific questions would help your company determine its role in the wind economy, both regionally and nationally. Christopher Hannan is a shareholder in the New Orleans office of Baker Donelson and is a member of the Transportation Group with a focus on the areas of admiralty and maritime law. Other key findings from the report include: The advancement of an offshore wind lease sale in the Gulf of Mexico is a game-changer, said Liz Burdock, founder and CEO of the Business Network for Offshore Wind, in a statement provided to POWER. The lease sale drew competitive winning bids from six companies totaling approximately $4.37 billion, revenue that goes to the U.S. Treasury. Comments received from the RFI and the call are used to inform the Area Identification (Area ID) process. [5], To back up this ambitious goal, the Biden administration has bulked up the regulatory agency (Bureau of Ocean Energy Management, BOEM) that issues federal leases and permits for offshore wind farms. Mayer Brown and the Mayer Brown logo are trademarks of Mayer Brown. The Bureau of Ocean Energy Management's (BOEM) largest leasing auction for rights to offshore wind development attracted nearly $1.54 billion in bids on Wednesday for six areas with an. In December, the first auction for leases off the Pacific coast fetched more than $757 million. Which out-of-state drivers licenses are no longer valid in Florida? The BOEM has proposed lease sales in two designated wind energy areas, or WEAs, off Louisiana and Texas. Wind development in the Gulf of Mexico began to gain traction in late 2020 when Louisiana Gov. Collectively, New York and New Jersey have set the nations largest regional offshore wind target of installing more than 16 GW of offshore wind by 2035. to prepare a programmatic environmental review to analyze the potential impacts of wind energy development activities in the New York Bight and New Jersey. [13], The two draft WEAs will be subject to public comment period, which was scheduled to close on August 20, 2022. 06.06.2023 | Updates On May 30, 2023, the Bureau of Ocean Energy Management (BOEM) announced its final environmental assessment (EA) of the effects of site characterization and site assessment activities associated with leasing federal waters in the Gulf of Mexico (GOM) for offshore wind development. The first draft WEA spans 546,645 acres about 24 nautical miles (nm) off the coast of Galveston, Texas. Follow us to learn about opportunities to participate in our efforts and how we engage. A similar process is underway for lease-area-identification and sale processes for the West Coast, with the anticipated West Coast lease sale to follow in 2023. And those same companies are on the brink of many new opportunities as the traditional vents de carme (literally Lenten winds, a Cajun French term for strong spring winds typically prevalent in the weeks before Easter in southeast Louisiana) in the Gulf of Mexico are poised to become part of that new wind economy. Exclusive news, data and analytics for financial market professionals, Reporting by Valerie Volcovici and Nichola Groom; Additional reporting by Timothy Gardner; Editing by Shounak Dasgupta and David Gregorio, including the largest ever such U.S. sale, Mexican Pemex estimates platform fire shut in 700,000 barrels of oil, Two dead, output impacted after fire engulfs Mexican oil platform, TotalEnergies boss: 2024 U.S. election could cause energy shock, Russia seeks UN Security Council meeting on Nord Stream blasts, World breaks hottest-day record for third time this week, U.S. agency says, Tesla wants EPA to finalize tougher vehicle emissions rules, Belgian Ryanair pilots plan strike in summer holiday period, National Australia Bank to change home loan refinancing criteria, Tesla rolls out customer referral incentive globally as EV price war heats up. The following provides a fairly broad 80,000-foot summary of where things currently stand in terms of the offshore wind pipeline: Two major projects with about 940 MW of capacity have reached [final investment decision] and have commenced onshore construction, more than 15 GW of projects are undergoing federal permitting review, 17.5 GW of project capacity has secured offtake commitments from states, auctions containing 12-to-16 GW of potential will be concluded before the end of this year, longer term leasing plans for the Gulf of Mexico, the Central Atlantic, Oregon, and the Gulf of Maine are being developed for auctions before the end of 2024, turbine component, foundation, and cable factories and Jones Act wind-farm vessels are being built in the U.S. and offshore wind port development is accelerating. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. On February 22, 2023, the Department of the Interior announced a proposed offshore wind lease sale for three proposed lease areas in the Gulf of Mexico off the coasts of Galveston, TX, and Lake Charles, LA.
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gulf of mexico offshore wind leasing