Auction for off-shore N.Y. wind farm rights smashes record

Statoil Wind US LLC won the rights to build a wind farm in federal waters 12 miles offshore from Long Island, New York, recently with a record-breaking bid of almost $42.5 million.

The U.S. Department of the Interior’s Bureau of Ocean Energy Management (BOEM) held the auction, which took place over two days and included 33 rounds of bidding by six parties.

“This proves there is real appetite and demand for new ocean energy opportunities in American waters,”
said Nancy Sopko, manager of advocacy and federal legislative affairs for the American Wind Energy Association (AWEA).

Statoil is a multinational energy company based in Norway that has made its name in the oil and gas industries.

“Investment from such an established player in the offshore oil and gas industry illustrates how offshore wind is the next frontier in energy development,” Sopko said. “Over the past decade there has been consistent progress toward the realization of offshore wind power’s potential in America.”

The area to be developed covers nearly 80,000 acres.The lease comprises an area that could potentially accommodate more than 1 gigawatt of offshore wind, with a phased-in development expected to start with 400-600 megawatts of wind energy.

“In the long run, the American economy is the big winner,” Sopko said. “This brand new offshore energy opportunity will contribute to thousands of skilled jobs in construction, manufacturing and operations that can be generated nationwide.”

New York has set a goal of 50 percent renewable energy by 2030.