Offshore Wind Bidding Reaches Gale Force

February 25, 2022

Reuters:

The Biden’s administration’s sale of offshore wind development rights off the coasts of New York and New Jersey continued to shatter records on Friday, reaching over $4 billion with one single block fetching over $1 billion.

The auction, which began on Wednesday, is the first offshore wind lease sale under U.S. President Joe Biden, who sees the expansion of the industry as a way to tackle climate change and create thousands of new jobs.

The U.S. Bureau of Ocean Energy Management (BOEM), which oversees energy development in federal waters, offered six leases across 488,201 acres (197,568 hectares) between New York’s Long Island and New Jersey, an area known as the New York Bight.

By midday on Friday, total high bids on the six blocks amounted to $4.235 billion, according to the BOEM’s web site. That is more than three times the revenue received from all U.S. offshore oil and gas lease auctions over the past five years.

The website did not identify the companies competing for the leases, but approved bidders included entities controlled by Equinor ASA (EQNR.OL), Avangrid Inc (AGR.N), BP Plc and Electricite de France SA (EDF.PA), among others, according to government documents published last month.

Under the rules of the auction, each company can only win one lease.

“The high bids will benefit tax payers, as the money incurred will go to the U.S. Treasury,” BOEM spokeswoman Tracey Moriarty said.

Ben Storrow on Twitter, yesterday:

US offshore wind leasing, a brief history.

2015: 2 bidders for 2 leases. Combined winning bids $448,171 
2016: 6 bidders, 1 lease. Winning bid $42 million 
2018: 11 bidders, 3 leases. Combined bids $405 million.
2022 (so far): 25 bidders, 6 leases. Combined bids of $728 million 

6 Responses to “Offshore Wind Bidding Reaches Gale Force”

    • gmrmt Says:

      I take it to mean that you agree that the greatly increasing bids indicate how investment and interest in renewables is skyrocketing and this is only a taste of the rapid expansion we’ll see in the coming years.
      But my early-morning view of your comment made me want to reply with a snarky “Yes. That’s what bidding is.”

  1. ubrew12 Says:

    They’re not making more Continental Shelves. I think these companies know which way the wind is blowing (pun intended).


  2. You can put big, ugly machines offshore but you can rarely hide their excessive footprint. It’s the wrong attitude for a planet that needs to slim down, economically.

    Consider the analogy between Big Wind and big EVs like the Hummer, pretending to be green but mostly a symbol of gluttony. Road & Track took a stance that you wouldn’t have seen in past years: https://www.roadandtrack.com/news/a39270970/hummer-ev-proves-were-making-all-the-same-mistakes-again/

    • renewableguy Says:

      So we can’t have our cake and eat it too. People that are willing to pay for indulgences in a clean way. We don’t support this direction, we lose the value of clean energy living.


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