Expanded offshore wind leasing could generate up to $4.5B in revenue

Expanded offshore wind leasing in the United States could generate up to $4.5 billion in new federal revenue, according to a new report released by the American Clean Power Association (ACP).

It could also create up to 128,000 jobs during construction of the projects as well as $120 billion in clean energy investments, the report stated.

“This report shows the power and potential of the growing offshore wind industry. Harnessing America’s offshore wind resources will create tens of thousands of highly-skilled jobs, revitalize coastal communities, and deliver vast amounts of reliable, clean energy to our biggest population centers,” ACP CEO Heather Zichal said. “We hope its findings will inform discussions around the beneficial use of BOEM revenue, as well as efforts to establish a more durable and predictable leasing and project pipeline.”

The analysis was conducted after the Bureau of Ocean Energy Management (BOEM) announced plans in October to schedule seven new lease auctions by 2025, including the New York Bight, Northern, and Central California, Carolina Long Bay, Oregon, the Gulf of Mexico, the Gulf of Maine, and the Central Atlantic.

The study estimates that leases sold at these auctions will support between 23 gigawatts and 40 gigawatts of new offshore wind projects, while construction would support between 73,000 and 128,000 jobs. Plus, there would be an additional 28,000 to 48,000 jobs in operations and maintenance roles, in the supply chain, and in surrounding communities for the life of the projects.

Also, the ACP analysis shows that lease auctions will open more areas for development to help meet the demand for individual states that have set offshore wind procurement targets. They would also help meet the federal goal of deploying 30 gigawatts of offshore wind by 2030 and provide regulatory certainty that will spark supply chain investments and clean energy job growth.

Further, ACP estimates that if BOEM opened between 6,600 and 11,400 square kilometers of area across the seven regions, it would generate between $1.6 and $2.7 billion in lease sale revenue over the next four years. It would also generate an additional $1.1 to $1.8 billion in rents and operating fees for a total of $2.7 to $4.5 billion in new revenue over the coming decades.

The report was sponsored by ACP along with ACP-California, the National Ocean Industries Association, the New York Offshore Wind Alliance, RENEW Northeast, Inc., The Southeastern Wind Coalition, and The Special Initiative on Offshore Wind.