The US will have a “premier opportunity” to develop a robust floating wind turbine supply chain that can compete globally, with the California lease auction having concluded, said the Business Network for Offshore Wind (BNOW).
Overall, BOEM generated $757m in revenue for five leases on the Outer Continental Shelf off central and northern California, making it the second largest auction in terms of total funding.
“With today’s completed lease sale, which also raised tens of millions allocated for floating supply chain development, the US will have a premier opportunity to develop a robust floating wind turbine supply chain that can compete on the global stage,” BNOW stated.
The five lease areas have the potential to generate at least 4.5GW of offshore wind energy.
Liz Burdock, founder and CEO of the Business Network for Offshore Wind, said: “By tapping into the vast wind resources along our country’s Pacific Coast, we can cement the United States as a global leader in floating offshore wind technology and supercharge our deployment of clean, affordable, and reliable wind power.
“While these lease sales mark an important moment for floating offshore wind in US waters, industry and our public stakeholders must quickly build a strong domestic supply chain to support the new industry and advance the port and transmission infrastructure necessary to ensure market readiness.”
The interim CEO of the American Clean Power Association (ACP), JC Sandberg, added: “This lease sale is a historic step for California’s decarbonization goals and shows the potential for floating offshore wind technology.
“California is set to become a pioneer in floating wind technology that will lower energy costs and increase grid reliability.
“We applaud the companies that are advancing the deployment of floating offshore wind technology.
“This sale shows strong interest in the California floating wind market and is clear validation of BOEM’s leasing process.”
The US offshore wind industry is investing billions of dollars in a domestic supply chain, including investments in fabrication facilities, port upgrades, vessels, and workforce training.
The deployment of 30GW of offshore wind nationally could create up to 83,000 jobs and $25bn in annual economic output.
BOEM has previously held nine competitive lease sales for commercial wind energy leases off the Atlantic Coast and has laid out a plan to ensure the US can grow the offshore wind sector.
Oregon is expected to follow California with a lease auction as soon as the summer of 2024, ACP stated.