More wind energy could be on the way off Louisiana's coast. Here's the plan.
Developing wind energy is key to reducing greenhouse gas emissions. The Gulf waters off southwest Louisiana could up for auction again soon. The U.S. Department of the Interior has announced plans for a second offshore auction of four new locations to build wind energy generators in the Gulf of Mexico off the coasts of Louisiana and Texas. The locations, located close to each other off southeast Texas and southwest Louisiana, could potentially provide enough electricity to power 1.2 million homes. The auction could occur later this year. The goal of the first and second lease sales is to offer sufficient acreage for leasing to help meet Louisiana's goal of five GW (gigawatts) of offshore wind energy. The Bureau of Ocean Energy Management (BOEM) has proposed holding simultaneous auctions for the four lease areas using new auction software. If BOEM proceeds with the auction, it will then publish a final sale notice in the federal register later.
Published : a month ago by Mark Schleifstein in Environment
The waters off Louisiana's coast could be in line for more wind energy under a newly announced federal plan. The U.S. Department of the Interior has announced plans for a second offshore auction of four new locations to build wind energy generators in the Gulf of Mexico off the coasts of Louisiana and Texas, with the auction possibly occurring later this year. All four locations are located relatively close to one another off southeast Texas and southwest Louisiana.
The four areas total 410,060 acres in federal waters where wind turbines could be built that have the potential of providing enough electricity to power 1.2 million homes, an Interior news release said. That's about 60% smaller than initially proposed by the Bureau of Ocean Energy Management in October 2023, but larger than the roughly 300,000 acres offered in the first Gulf wind lease last August. The Federal Register notice said a key goal of the first and second lease sales was to "offer sufficient acreage for leasing to allow for robust development to help meet the state of Louisiana's goal of five GW (gigawatts) of offshore wind." The state is now producing a total of about 24.7 gigawatts onshore from retail and wholesale electric power generation, mainly from natural gas, but also from coal, nuclear and hydroelectric plants.
The 5 gigawatt Louisiana goal for wind electricity generation is part of the Louisiana Climate Action Plan approved in 2022 under former Gov. John Bel Edwards. Edwards had also pushed for development of wind farms in Louisiana waters along the coast as part of that plan. Gov. Jeff Landry has yet to say whether he will implement that plan.
“Today’s announcement is another step forward in the Biden-Harris administration’s pursuit of building a clean energy future and permitting 30 gigawatts of offshore wind energy capacity by 2030,” said Interior Secretary Deb Haaland. In last year's auction, only one firm, RWE Offshore US Gulf LLC, was awarded roughly 102,000 acres about 44 miles south of Lake Charles, after offering a high bid of $5.6 million. Two other areas offered in that lease sale drew no bidders. That company is a U.S. subsidiary of German energy conglomerate RWE, which signed a partnership in March 2023 with Entergy Corp. to study best practices for bringing wind energy to the Louisiana and Texas markets.
The high cost of material and elevated interest rates have hampered the fledgling wind energy industry in the United States. Specifically in the Gulf, lower wind speeds and hurricanes are also a concern. BOEM has proposed holding simultaneous auctions for the four lease areas, using new auction software. Notice of the auction was published in the Federal Register on Thursday, triggering a 60-day public comment period that ends on May 20. If BOEM decides to proceed with the auction, it would then publish a final sale notice in the federal register later. The agency is asking for feedback on the size, orientation and location of the four new areas, and which ones should be included or excluded from the sale. BOEM also is asking whether the production of hydrogen or other energy products using wind turbine generators on the lease should be included in the lease agreements.
It's also seeking comments on including lease stipulations that would ensure historically underserved communities are included in the development process. Proposed bidding credits will include funding for both fisheries compensatory mitigation and workforce development. Some of the lease areas were reduced in size to avoid conflicts with shrimp harvesting and oil and gas exploration and production. Interior has approved six commercial-scale offshore wind projects and held three offshore wind lease auctions on the East, Gulf and Pacific coasts. Biden administration calls for 3 oil and gas auctions in 5 years, all in Gulf of Mexico
The auction announcement comes as the Biden administration is still facing criticism from Louisiana and other Republican leaders, including Landry, for deciding to hold only three new oil and gas lease auctions in the Gulf over the next five years. Landry and others contend the administration is sacrificing oil and gas jobs in its effort to reduce carbon emissions.
Topics: ESG