Offshore Wind Development Is Coming to the Gulf of Mexico
BY JOAN M . BONDAREFF AND KEITH B . LETOURNEAU wind by 2035 . Floating offshore wind is needed for the deeper waters in the Pacific off the coast of California , but shallower waters in the GoM will support the use of fixed platforms similar to those proposed along the Atlantic Coast .
The U . S . Department of the Interior ’ s Bureau of Ocean Energy Management (“ BOEM ”) has identified two Wind Energy Areas (“ WEAs ”) in the Gulf of Mexico (“ GoM ”) to develop offshore wind farms . A lease sale is expected later this summer . One 546,000-acre WEA is located south of Galveston , Texas ; the other is a 188,000-acre tract off the coast of Lake Charles , Louisiana . According to BOEM , the two WEAs have the potential to power 2.3 million and 799,000 homes , respectively , with clean energy generated by continuously renewable offshore wind .
Offshore wind promises various advantages over onshore wind farms , including stronger , more consistent , and less turbulent winds , and the use of substantially bigger towers and blades than onshore farms , resulting in more efficient and greater power generation ; out-of-sight-and-sound facilities ; the capacity to service large U . S . coastal populations ; and the ability to avoid ecologically sensitive sites ashore . ( See
Onshore vs offshore wind energy : what ’ s the difference ?) Moreover , according to some estimates , the GoM possesses the potential to generate almost 510 giga watts (“ GW ”) of offshore wind (“ OSW ”) annually . ( See
The Gulf of Mexico is poised for a wind energy boom . ‘ The only question is when .’) Additionally , given the mature oil and gas offshore infrastructure along and off the Gulf Coast states , that infrastructure arguably can and would adapt to build and maintain OSW farms in the GoM .
This article reviews the next steps in the development of wind farms in the GoM , comparing the environments in other parts of the country with those in the Gulf region and describing the obstacles to actual production of offshore wind in the GoM .
Development of GoM wind farms is part of the Biden administration ’ s larger plan to produce 30 GW of offshore wind by 2030 , and a new goal of 15 GW of floating offshore
Lease Sale Process As of July 2022 , BOEM has issued a total of 27 commercial offshore wind farm leases and two records of decisions approving the construction of two major wind farms ( Vineyard Wind and South Fork Wind ). Most of the proposed sites for large wind farms are located off the Atlantic Seaboard , especially off Massachusetts and the Mid-Atlantic Coast , with others farther south off Virginia and North Carolina . ( See
Leases Map Book July 2022 .)
A recent auction covering the New York Bight produced $ 4.37 billion in sales from six bidders . However , the most recent auction off the coast of California only generated $ 757 million from five winners .
Major bidders in these auctions include European developers , such as Equinor , Avangrid ( part of Iberdrola ), and EDF . Oil majors Shell and BP are also participating either directly or as partners in these leases , which last about 30 years . We anticipate major oil companies having a prominent role in GoM wind farms going forward due to their current owner ship of oil and gas leases in the same region . Of course , conflicts between oil and gas leases and new OSW leases will have to be resolved through the lease sale and attendant permitting processes , including compliance with the National Environmental Policy Act (“ NEPA ”).
Permitting and Enforcement Changes After a successful auction , BOEM follows its four-step process for permitting the wind farms , which includes planning and analysis ; lease issuance ; site assessment ; and construction and operations . NEPA is a critical part of this effort . From sale to issuance of a BOEM record of decision (“ RoD ”) takes about two years , after which construction can commence .
We are hopeful that the duration of this process can be compressed due to BOEM ’ s recent announcement of new regulations to streamline the auction and permitting process . The agency anticipates saving developers one billion dollars over the next 20 years with these changes . The changes include increasing survey flexibility ; establishing
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