Interior Department, BOEM to hold wind auction for area in New York Bight

Published on January 14, 2022 by Dave Kovaleski

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The U.S. Department of the Interior, along with the Bureau of Ocean Energy Management (BOEM) and the states of New York and New Jersey, is holding an offshore wind auction on Feb. 23.

The auction is for an area consisting of 488,000 acres offshore located in the New York Bight. Offshore wind developers will be allowed to bid on six lease areas – the most areas ever offered in a single auction. Leases offered in this sale could result in 5.6 to 7 gigawatts of offshore wind energy, enough to power nearly 2 million homes.

The New York Bight offshore wind auction will include several innovative lease stipulations designed to advance flexibility in transmission planning and make use of project labor agreements throughout the construction of offshore wind projects. Stipulations include incentives to source major components domestically — such as blades, turbines, and foundations — and to enter into project labor agreements to ensure projects are union-built.

“We must chart an ambitious path toward a cleaner energy economy now more than ever, and today’s milestone further highlights New York’s commitment to reaching its offshore wind goals. This effort will require collaboration at all levels, and I applaud the Biden administration for their action and thank Secretary Haaland and BOEM, as well as New Jersey Governor Murphy, for their partnership as we build on New York’s offshore wind energy development,” New York Gov. Kathy Hochul said.

In her recent State of the State address, Hochul announced plans to invest in offshore wind infrastructure, initiate planning for an offshore wind transmission network, and launch the offshore wind Master Plan 2.0 Deep Water. Hochul said offshore wind will support more than 6,800 jobs, have a $12.1 billion economic impact, and generate more than 4.3 gigawatts of energy.
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“Offshore wind holds tremendous promise for our future in terms of climate change, economic growth, strengthening our workforce, and job creation. New Jersey is already committed to creating nearly one-quarter of the nation’s offshore wind generation market, and these transformative projects are proof that climate action can drive investments in infrastructure and manufacturing while creating good-paying, union jobs. By acting on this shared vision, we can promote our joint offshore wind goals, and deliver benefits to residents of both states, particularly those in overburdened communities,” New Jersey Gov. Phil Murphy said.

The offshore wind industry in the U.S. presents a $109 billion opportunity in revenue to businesses in the supply chain over the next decade, officials said.

“ACP applauds the announcement from the Biden-Harris administration to increase the deployment of clean energy projects and create more jobs across the country with a focus on offshore wind, expanding renewables on public lands, and upgrades to the electrical transmission system. The actions announced today show that an entire whole-of-government approach is being brought to address the challenge of climate change,” American Clean Power Association CEO Heather Zichal said.