Equinor and Dominion Energy have provisionally won two separate US offshore wind leases in the Central Atlantic tender after placing bids totalling almost $93m.
The Norwegian developer secured OCS-A 0557 for $75m following the auction, which took place today.
The 2GW site is located 26 nautical miles from Delaware Bay.
Dominion won lease OCS-A 0558 at $17,650,500, which consists of 176,505 acres and is approximately 35 nm from the entrance of Chesapeake Bay.
Six companies participated in the auction.
Equinor said it will now work with BOEM to certify the lease, and after regulatory approvals, the Central Atlantic site would be added to Equinor’s existing US offshore wind portfolio.
“Equinor is pleased to have been selected as the provisional winner of the Central Atlantic offshore wind lease auction,” said Equinor renewables US boss Molly Morris.
“Equinor’s interest in this auction is consistent with our approach to pursue attractive offshore wind opportunities in the United States. The Central Atlantic region has a rapidly growing demand for electricity with widespread support for adding renewable sources of energy into the power mix.”
“Today’s announcement underscores Equinor’s commitment to delivering value through renewable projects. This is a long-term option with first power post 2035. Developing this lease area will draw upon Equinor’s proven capabilities in offshore wind. We will take a disciplined approach to minimize risk and mature a robust project in our portfolio,” added Pål Eitrheim, executive vice president of Equinor Renewables.
Dominion President and CEO Robert Blue said that “winning this lease area gives us another low-cost option to meet that growing demand while providing our customers with reliable, affordable and increasing clean energy.”
Dominion was the only bidder for the site, which is adjacent and to the east of the currently-under construction 2.6GW Coastal Virginia Offshore Wind project.
The site could support between 2.1 and 4 GW of wind generation, according to BOEM
“At the start of the Administration, our nation had approved zero offshore wind energy projects. Today, we have nine – enough to power nearly 5 million homes. This is what developing a clean energy transition looks like,” said Secretary of the Interior Deb Haaland.
“Together, we are demonstrating that, in partnership with states, Tribes, ocean users and industry, we can build an entirely new and sustainable industry that will meet the growing demands of our nation far into the future, while creating good-paying jobs and helping mitigate the threat of the climate crisis.”
Today’s sale resulted in over $23 million total bidding credits. These bidding credits will result in over $11 million in investments for workforce training and domestic supply chain, and an additional $11 million for fisheries compensatory mitigation.
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 Tribes, agencies, and fisheries; and provide semi-annual reports on engagement activities with Tribes and communities.
The leases awarded today do not authorize the construction or operation of an offshore wind facility. Rather, a lease provides the right to submit a project plan for BOEM’s review.
BOEM will develop an Environmental Impact Statement (EIS) to analyze the specific impacts of any project proposals before making decisions on whether to approve a proposed construction and operations plan.
The EISs would be prepared in consultation with Tribes and appropriate government agencies, and informed by input from stakeholders, ocean users, and the public.