Ocean Winds, RWE Renewables, the EDF-Shell Atlantic Shores venture and Invenergy are among the winners that have scooped leases in the 7GW New York Bight development rights auction, which ended on Friday after almost three days of bidding.
In total, the six winning developers agreed to pay $4.37bn for six sites off New York and New Jersey.
RWE’s Bight Wind Holdings pledged the largest single fee for the OCS-A 0539, agreeing to pay $1.1bn.
The German developer, which partnered with National Grid on the bid, said the site could deliver up to 3GW, although was listed by BOEM as a 1.4GW zone, the largest on offer in the round.
The successful bid marks RWE’s entry into US offshore wind.
Attentive Energy was the second-highest bidder for the 964MW OCS-A 0538 with a fee of $795m. The Bureau of Ocean Energy Management did not reveal its owners.
Atlantic Shores, the EDF Renewables-Shell partnership, landed the 924MW OCS-A 0541with a bid of $780m while Ocean Winds, the EDPR-Engie tie-up, secured the 868MW OCS-A 0537 for $765m.
The latter bid in the round with New York-based Global Infrastructure Partners.
Bautista Rodríguez Sanchez, CEO of Ocean Winds, said: “This successful bid demonstrates the determination of Ocean Winds to be a major developer and operator of the offshore wind farms that will be a key source of much needed clean, reliable, renewable energy.”
Invenergy and Mid-Atlantic Offshore Wind won the remaining two sites, 934MW OCS-A 0542 and 523MW OCS-A 0544, for $645m and $285m.
The successful bid by Invenergy marks its entry into US offshore wind while the identify of the latter is not immediately clear.
The provisional results were confirmed after 64 bidding rounds following almost three days.
“This week’s offshore wind sale makes one thing clear: the enthusiasm for the clean energy economy is undeniable and it’s here to stay,” said Department of the Interior Secretary Deb Haaland.
“The investments we are seeing today will play an important role in delivering on the Biden-Harris administration’s commitment to tackle the climate crisis and create thousands of good-paying, union jobs across the nation.”
Before the leases are finalised, the Department of Justice and Federal Trade Commission will conduct an anti-competitiveness review of the auction, and the provisional winners will be required to pay the winning bids and provide financial assurance to Interior’s Bureau of Ocean Energy Management (BOEM).
The New York Bight offshore wind leases include innovative stipulations designed to promote the development of a robust domestic US supply chain for offshore wind energy and enhance engagement with Tribes, the commercial fishing industry, other ocean users and underserved communities.
The stipulations will also advance flexibility in transmission planning, said the DoI.
Stipulations include incentives to source major components domestically – such as blades, turbines and foundations – and to enter into project labor agreements to ensure projects are union-built.
“We must have a robust and resilient domestic offshore wind supply chain to deliver good-paying, union jobs and the economic benefits to residents in the region,” said BOEM Director Amanda Lefton.
“Because we understand the value of meaningful community engagement, we are requiring lessees to report their engagement activities to BOEM, specifically noting how they’re incorporating any feedback into their future plans.”
Liz Burdock, CEO of the Business Network for Offshore Wind, said clear political support, an emerging, robust, local supply chain, and a years-long preparation window led to the intense bidding in New York.
“Gains here today will go a long way to achieve the Biden Administration’s goal of 30 GW by 2030 and will play a critical role in the formation of a domestic supply chain,” she said.