The US Bureau of Ocean Energy Management (BOEM) has cancelled the planned lease sale of potential Wind Energy Areas (WEAs) in the Gulf of Mexico citing a “lack of competitive interest”.
The announcement came after the agency revealed it has received an unsolicited lease request from Hecate Energy Gulf Wind LLC (Hecate Energy) to acquire commercial wind energy lease(s) on the Outer Continental Shelf (OCS) in the region.
In response, BOEM is seeking information regarding whether competitive interest exists in the areas included in Hecate Energy’s request.
The tracts are located off the coast of south-east Texas and had been previously identified by BOEM as potential 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 total of 142,352 acres.
As required by the OCS Lands Act, BOEM said it is issuing a Request for Competitive Interest (RFCI) seeking comments and specific input regarding whether there is competitive interest in commercial offshore wind energy development in the areas requested by Hecate Energy. The RFCI will be published in the Federal Register today (29 July, 2024).
To comment on the RFCI, go to www.regulations.gov and search for BOEM-2024-0039. The agency may use comments received to further identify and refine the area(s) being considered for wind energy development and inform future environmental analyses related to the potential lease area.
If BOEM receives one or more indications of interest in acquiring a commercial wind lease from qualified entities, it may decide to move forward with a competitive lease sale.
If the agency does not receive competing indications of interest from qualified companies, it may move forward with a noncompetitive lease issuance to Hecate Energy.
BOEM worked with NOAA’s National Centers for Coastal Ocean Science to identify 14 potential WEAs via a comprehensive ecosystem-based ocean planning model as detailed in a joint report published in 2021.
The areas contained in Hecate Energy’s unsolicited lease request were identified as part of that effort and are different than the areas (WEA I-1, WEA I-2, WEA J, and WEA K) included in BOEM’s Proposed Sale Notice (PSN) for a second Gulf of Mexico offshore wind lease sale, published on March 21, 2024.
The first lease sale in the Gulf of Mexico was held in August of 2023 and one lease was awarded to RWE Offshore US Gulf LLC.
BOEM received 25 comments in response to the March 2024 PSN, with one company expressing interest in participating. As a result, the agency is cancelling this sale due to a lack of competitive interest, it said.
BOEM may decide to move forward with a lease sale at a future time, based on industry interest, it added.
“The Gulf region benefits from great offshore wind resources and existing energy infrastructure,” said Gulf of Mexico regional director James Kendall.
Dr Kendall added: “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.”