New York Bight offshore wind sale nets largest haul in U.S. history
The New York Bight offshore wind sale posted the highest-grossing competitive offshore energy lease sale in U.S. history, including oil and gas lease sales, the Department of the Interior announced.
The lease sale, which offered six areas totaling over 488,000 acres in the New York Bight for potential wind energy development, drew winning bids from six companies totaling approximately $4.37 billion.
“This week’s offshore wind sale makes one thing clear: the enthusiasm for the clean energy economy is undeniable, and it’s here to stay,” Interior Secretary Deb Haaland said. “The investments we are seeing today will play an important role in delivering on the Biden-Harris administration’s commitment to tackle the climate crisis and create thousands of good-paying, union jobs across the nation.”
The six winning bidders are OW Ocean Winds East for 71,522 acres at $765 million; Attentive Energy for 84,332 acres at $795 million; Bight Wind Holdings for 125,964 acres at $1.1 billion; Atlantic Shores Offshore Wind Bight for 79,351 acres at $780 million; Invenergy Wind Offshore for 83,976 acres at $645 million; and Mid-Atlantic Offshore Wind for 43,056 acres at $285 million.
The U.S. Department of Justice and Federal Trade Commission will conduct an anti-competitiveness review of the auction before the leases are finalized.
The New York Bight offshore wind leases include provisions designed to promote the development of a robust domestic U.S. supply chain for offshore wind energy and enhance engagement with Tribes, the commercial fishing industry, other ocean users, and underserved communities. The stipulations also include incentives to source major components domestically, such as blades, turbines, and foundations, and labor agreements to ensure union-built projects.
“We must have a robust and resilient domestic offshore wind supply chain to deliver good-paying, union jobs, and the economic benefits to residents in the region,” Bureau of Ocean Energy Management Director Amanda Lefton said. “Because we understand the value of meaningful community engagement, we are requiring lessees to report their engagement activities to BOEM, specifically noting how they’re incorporating any feedback into their future plans.”
The American Clean Power Association (ACP) called the lease sale a critical step to meeting the Biden Administration’s goal of deploying 30 gigawatts (GW) of offshore wind energy by 2030.
“The scale of this lease sale is historic and shows the strong demand for clean energy. Development from this sale will create and support tens of thousands of new domestic jobs and help to revitalize our coastal communities,” ACP CEO Heather Zichal said. “We support BOEM’s path forward to conduct six more lease sales through 2024, and we challenge policymakers to provide even more certainty to this new industry, ensuring that the American people benefit from its growth and job-creating potential.”
These new leases are estimated to support between 23 GW and 40 GW of new offshore wind projects.
Avangrid Renewables entered the auction but determined that the bid prices of the lease areas did not correspond with the strategic goals of its renewables portfolio.
“Avangrid Renewables remains committed to the offshore wind market in New York and New Jersey and will continue to explore opportunities to bring our deep experience and record of delivering transformational local supply chain investments to the region. As the United States pursues an ambitious 30 GW offshore wind goal by 2030, Avangrid Renewables is playing a critical role through the development of our robust portfolio of nation-leading offshore wind projects and will carefully consider new market opportunities as they emerge,” company officials said.
