The United States’ administration has given wind power two boosts by announcing the auctioning of up to seven offshore wind farm leases and providing millions in offshore research money.   

The Department of the Interior (DOI) hopes the offshore wind lease auction will help it hit its target of adding 30 gigawatts (GW) of offshore wind and 25GW of onshore wind power by 2025. At the same time, $13.5 million is to be spent to study how to minimize the impact of wind turbines on east coast fisheries and west coast ecosystems.   

In June 2021, the Biden-Harris administration announced its first wind lease sale for up to 7GW of offshore wind energy sold for the Outer Continental Shelf (OCS) in New York Bight. Installed turbines in this shallow water area, located between Long Island and the New Jersey coast, could power more than 2.6 million homes.   

The news comes just days before the opening of COP26 in Glasgow, Scotland, the United National Climate Change Conference, which runs from Oct 31-Nov 12. 

What Sites Are Earmarked for Offshore Wind Development? 

Seven offshore leases will be up for auction in the following areas:   

• Gulf of Maine 
• New York Bight 
• Central Atlantic 
• Gulf of Mexico 
• The Carolina States 
• California 
• Oregon  

The Department of Energy (DOE) claims the offshore sites could eventually power 10 million homes and cut 78 million metric tons of carbon emissions. Some $12 billion annual capital investment will be generated, the DOE claims, as well as up to 77,000 jobs.   

The money will support the building of 10 new manufacturing plants to provide components for the turbines, new ships for turbine installation, and $500 million to upgrade ports in each region. In 2020, 71% of small wind turbines sold in the U.S. were built in-country.  

Why Is Research Required Before Building Offshore Wind? 

The DOE’s $13.5 million research fund will look at the impact of offshore wind sites on wildlife and fisheries as well as the distribution of permits.  

Work will also take place with the Bureau of Ocean Energy Management (BOEM) to improve the process of identifying suitable sites for offshore wind farms. The BOEM states it will develop clear goals and guidelines that tribes, industry, agencies, and ocean users can access. Its overall aim is to “minimize conflict with existing uses and marine life.”   

BOEM director Amanda Lefton said: “We are working to facilitate a pipeline of projects that will establish confidence for the offshore wind industry.”  

However, New York fishermen have already claimed that wind turbines could be the “final nail in the coffin” for their industry.  

Who May Develop Offshore Wind Sites in the United States? 

There are currently 15 offshore wind farm projects in the pipeline in the United States. The country’s abundant natural resources and coastline make it ripe for offshore development.  

A battle may be brewing as companies jostle for positions in the offshore wind and renewable energy market. Such grand projects require billions in capital, and few companies have such financial muscle.  

Large oil companies have been quick to make green pledges and will be keen to grab a share. They have championed renewable projects while promising to reduce oil production to reduce their carbon emissions.   

BP and Shell are just two companies promoting carbon capture, investment in renewables, and lower emissions. BP and Total recently outbid rivals to build new offshore wind projects in the U.K.   

BP has entered the U.S. market, too, by teaming up with Norway’s Equinor, paying $1.1 billion for a 50% stake in wind farms planned for New York. Equinor may be scouting for more projects, too, after declaring that it will spend half of all its capital expenditure on renewables by 2030. 

Offshore Wind Auctions the New Energy Battlefield?  

Government-led initiatives and funding coupled with market appetite look like they could be driving a U.S. boom in offshore and onshore wind investment this decade.   

It may well be that fossil fuel companies will become the most prominent players in the renewables market. The auctions will be telling — big money and climate change are on the line. 

Opinion writer: Tom Shearman

The opinions, beliefs, and viewpoints expressed by the various authors do not necessarily reflect the opinions, beliefs, or viewpoints of Interactive Energy Group, LLC (IEG) or its parent companies or affiliates and may have been created by a third party contracted by IEG.  Any content provided by the bloggers or authors are of their opinion and are not intended to malign any individual, organization, company, group, or anyone or anything.

Brought to you by energysavings.com
All images licensed from Adobe Stock.
Featured Image