The Bureau of Ocean Energy Management (BOEM) announced today that it has received an unsolicited lease request from Hecate Energy for commercial offshore wind energy leases on the Outer Continental Shelf (OCS) in the Gulf of Mexico.
BOEM is now seeking information on whether competitive interest exists in the areas included in Hecate Energy’s request. These areas, located off the coast of southeast Texas, were previously identified by BOEM as potential Wind Energy Areas (WEAs) suitable for offshore wind leasing in 2021. WEA Option C totals 74,113 acres, and WEA Option D totals 68,239 acres, for a combined total of 142,352 acres.
As required by the OCS Lands Act, BOEM is issuing a Request for Competitive Interest (RFCI) to gather comments and input on whether there is competitive interest in these areas. BOEM may use the comments to further refine the areas under consideration and inform future environmental analyses related to the potential lease area.
If BOEM receives indications of interest from other qualified entities, it may proceed with a competitive lease sale. If not, BOEM may move forward with a noncompetitive lease issuance to Hecate Energy. The areas in Hecate Energy’s request differ from those in BOEM’s Proposed Sale Notice (PSN) for a second Gulf of Mexico offshore wind lease sale, published on March 21, 2024. This second sale was canceled due to a lack of competitive interest, despite initial interest from one company.
“The Gulf region benefits from great offshore wind resources and existing energy infrastructure,” said Gulf of Mexico Regional Director Dr. James Kendall. “The interest from industry leaders such as Hecate and RWE demonstrates the commercial potential in the region. As we continue to explore these opportunities, we will ensure that any potential development is done in a way that avoids, reduces, or mitigates potential impacts to ocean users and the environment.”
Hope for Offshore Wind Boom in Gulf of Mexico Fades With Low Bids
The first offshore wind lease sale in the Gulf of Mexico in August 2023, taking place during a challenging period for the industry marked by rising costs and supply chain issues, raised just $5.6 million for a 100,000-acre area off Louisiana’s coast, but saw no bids for two areas off Texas. The disappointing result 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 successful sales took place off the Carolinas and California coasts, with high bids totaling $315 million and $757 million, respectively.
Since the beginning of the Biden-Harris administration, the Department of the Interior has approved the nation’s first nine commercial-scale offshore wind projects with a combined capacity of more than 13 gigawatts — enough to power nearly 5 million homes. The Department has held four offshore wind lease auctions since January 2021, including a record-breaking sale offshore New York and the first-ever sales offshore the Pacific Coast and in the Gulf of Mexico. The Department also recently announced a schedule of up to 12 additional lease sales through 2028.
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