US gives date for 3.7GW first offshore wind tender in Gulf of Mexico

The auction, to be run by the Bureau of Ocean Energy Management (BOEM), will be held on 29 August and includes a 414km² area off Lake Charles in Louisiana, as well as two areas off the coast of Galverston Texas – of 414km2 and 392km2.

In October, BOEM announced it had mapped out up to 8.3GW of wind development areas in the Gulf on Mexico. 

The DOI said the auction would advance President Biden’s target of 30GW of offshore wind by 2030 and to decarbonise the US electricity sector by 2035.

Deb Haaland, US interior secretary, said: “Today’s announcement marks another historic step in the Biden-Harris administration’s efforts to create a clean energy future. By catalysing the offshore wind energy potential of the Gulf of Mexico, we can tackle the climate crisis, lower energy costs for families and create good-paying jobs.”

BOEM will publish a final sale notice (FSN) on its website tomorrow (21 July), which will include the lease areas and conditions, along with further details of the auction. It will also identify qualified companies that can participate in the auction. 

Bidding credits and auction design

BOEM said that, following a consultation with stakeholders, it had shaped auction stipulations around its commitment to engage with other ocean users as well as underserved communities.

It added that as part of the FSN, those taking part in the auction would be offered bidding credits if their submissions included:

• Support for workforce training programmes;

• Developing a domestic supply chain for the offshore wind industry;

• Establishing and contributing to a fisheries compensatory mitigation fund; and

• Contributing to an existing fund to mitigate potential negative impacts to commercial and for-hire recreational fisheries caused by offshore wind development.

Bidders would also be required to provide regular progress reports on their engagement with tribal communities and other ocean users that could potentially be affected by offshore wind development.

In May, BOEM said its environmental assessment showed that wind leasing in the Gulf of Mexico would have “no significant impact” on environmental resources.

High potential

According to a study funded by the bureau, generating potential in the gulf is nearly 510GW per year.

An industry specialist suggested last month that the Gulf of Mexico’s maritime history, skilled oil and gas workforce with transferable skills and its existing port infrastructure made the region ideally suited to offshore wind development.