Biden Administration Plans Second Offshore Wind Sale in Gulf of Mexico

The Biden Administration has announced plans for a second offshore wind lease sale in the Gulf of Mexico after a first sale which, despite its historic significance, earned only a small fraction of the funds raised during previous sales along the eastern seaboard and California coasts.

The proposed lease sale, announced on Wednesday by the Department of the Interior, is planned to include four areas offshore Louisiana and Texas, totaling 410,060 acres which have the potential to power 1.2 million homes at peak capacity.

Billed as a historic move for renewable offshore wind development in the energy-rich Gulf of Mexico, last August’s lease auction—taking place during a challenging period for the industry with rising costs, interest rates, and supply chain challenges—concluded with only a single high bid of $5.6 million for the rights to a 100,000-acre area off Louisiana’s coast. Meanwhile, two other lease areas offered off Texas received no bids.

This contrasted sharply with the record-breaking offshore wind lease sale off New York and New Jersey in February 2022, which attracted $4.3 billion in winning bids. Other sales off the Carolinas and California coasts also proved successful, with high bids totaling $315 million and $757 million, respectively. The California sale was the first ever held along the Pacific coast.

“Today’s announcement is another step forward in the Biden-Harris administration’s pursuit of building a clean energy future and permitting 30 gigawatts of offshore wind energy capacity by 2030,” said Department of the Interior Secretary Deb Haaland. “We are taking action to jumpstart America’s offshore wind industry and using American innovation to deliver reliable, affordable power to homes and businesses, while also addressing the climate crisis.”

The lease sale adds the Biden Administration’s track record of actions to bolster offshore wind development in U.S. federal waters. Under the current administration, the Department has approved the nation’s first six commercial scale offshore wind projects, conducted four lease auctions, initiated environmental reviews for 12 projects, and furthered the establishment of additional Wind Energy Areas. The Department is also modifying its approach to offshore wind to encourage union-built projects and a domestic supply chain.

Today’s announcement comes just weeks after the opening of the first commercial-scale offshore wind farm in the United States, the South Fork Wind project located off Long Island.

As part of today’s proposed sale, BOEM is seeking feedback on a number of aspects of the proposed lease areas. It is also considering lease revisions to allow the production of hydrogen or other energy products using wind turbine generators on the lease, and stipulations to ensure that communities, especially those historically underserved, are included throughout the offshore wind energy development process.

Today’s action sets the stage for a potential auction taking place later this year. A Proposed Sale Notice will be published in the Federal Register on March 21, 2024, initiating a 60-day public comment period that ends on May 20, 2024. If BOEM decides to proceed with the auction, the subsequent step would be the publication of a Final Sale Notice.

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