Wind power companies bid more than $4bn for ocean waters near New York

The largest lease of marine wind in the U.S. attracted record bids of more than $ 4 billion, surpassing any oil and gas auction in U.S. waters, as renewable energy developers compete to ensure a superior location for turbine installation.

The 488,000-acre federal government tender in the Atlantic near New York and New Jersey drew high bids of $ 4.37 billion after a three-day auction process that ended Friday, according to Bureau of Ocean Energy Management. The amount dwarfs the previous wind lease sales.

Demand for leases in the region, known as New York Bay, comes as U.S. President Joe Biden seeks to drive the country’s emerging maritime sector as part of a broader push to reduce its electricity industry’s carbon footprint by 2035. The administration has Set a goal Of 30 gigawatts of wind energy in U.S. waters by 2030 – enough to power about 10 million homes a year.

Coastal states like New Jersey and New York Also set their own goals for naval force.

The largest of the six lease blocks under the hammer went for $ 1.1 billion to Bight Wind Holdings, a venture between German power companies RWE and Britain’s National Grid. The quantity was more than eight from the previous record for a single area.

A venture between the big oil company Shell and the French electricity company EDF snatched another block, while the EDP Renewables of Portugal and the French Engie jointly took one third jointly.

“This week’s sale of marine spirit clarifies one thing: there is no denying the enthusiasm for the clean energy economy and it is here to stay,” said Dov Halland, the US Secretary of the Interior.

The state’s previous 390,000-acre maritime wind auction in 2018, off the coast of Massachusetts, raised $ 405 million.

The record paid for oil and gas drilling rights in U.S. waters was $ 3.7 billion in the Gulf of Mexico in 2008, according to Interior Ministry data.

The sale of the area’s last lease of oil and gas, which spans about 1.7 million acres in the Gulf last year – the only such tender that has taken place since Biden took office – has drawn high bids of $ 192 million. That was later thrown out By a federal court.

While terrestrial wind farms in the U.S. occupy a capacity of 124GW, only two small offshore operations have been built in the country to date, leaving it far behind in Europe.

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The permit process has been accelerated under the current White House. Two large wind farms received full approval and began construction.

The latest tender was the first of no less than 7 leases abroad that the administration hopes to hold by the end of 2025. Others are designed Off the coasts of Carolina and California later this year, the Department of the Interior said.

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Wind power companies bid more than $4bn for ocean waters near New York Source link Wind power companies bid more than $4bn for ocean waters near New York

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