Iberdrola, Invenergy Win Offshore Wind Areas in Gulf of Maine

The United States Bureau of Ocean Energy Management (BOEM) has awarded lease areas for potential wind energy developments off the Atlantic Coast to Iberdrola SA and Invenergy.

The four leases, which constitute the first offshore wind lease sale involving the Gulf of Maine, can power over 2.3 million homes, the BOEM said in a statement.

Iberdrola’s Avangrid Renewables LLC bagged Lease OCS-564, which covers nearly 98,600 acres, with a bid of $4.93 million and Lease OCS-568, which consists of almost 125,000 acres, at $6.24 million. Both areas are about 29.5 nautical miles from Massachusetts.

Invenergy NE Offshore Wind LLC won Lease OCS-562, which spans over 97,800 acres around 46.2 nautical miles from Maine, at $4.89 million and Lease OCS-567, which consists of nearly 117,800 acres approximately 21.6 nautical miles from Massachusetts, with a $5.89 million offer.

“Together, we can create good-paying jobs, build a domestic supply chain, and ensure that the momentum of this offshore industry continues for generations to come”, Interior Secretary Deb Haaland said in the statement on the BOEM’s website.

BOEM Director Elizabeth Klein said, “To ensure we got the process of bringing offshore wind to the Gulf of Maine right, we’ve engaged in over a hundred outreach efforts with local communities and connected with thousands of partners and stakeholders”.

The auction gathered $5.4 million in bidding credits that represent binding commitments by the companies to invest over $2.7 million in workforce training and domestic supply chain development and an additional $2.7 million for “fisheries compensatory mitigation”, the BOEM said.

“In addition, lease stipulations require that the lessees make every reasonable effort to enter into a project labor agreement covering the construction stage of any project for the lease areas; develop communication plans for engagement with Tribes, agencies, and fisheries; and provide semi-annual reports on engagement activities with Tribes and communities”, it added.

Next, the winning companies are expected to submit their project plans, which would then be subjected to environmental reviews by the BOEM in consultation with stakeholders.

The Biden administration has now held six offshore wind lease auctions including for areas off the Carolinas, New Jersey, New York and the Pacific and Gulf of Mexico coasts. Meanwhile, it has approved 10 commercial-scale offshore wind projects, from zero before President Joe Biden took power.

On April 24 Interior Secretary Deb Haaland announced a new five-year offshore wind leasing plan for the Atlantic, the Gulf of Mexico, the Pacific and U.S. territories. Four awards are planned for 2024, one each for 2025 and 2026, two for 2027 and four for 2028.

To contact the author, email jov.onsat@rigzone.com