The Bureau of Ocean Energy Management (BOEM) has canceled its second Gulf of Mexico offshore wind lease sale due to a lack of competitive interest. Published on March 21, 2024, the Proposed Sale Notice (PSN) received 25 comments, but just one company was willing to participate. BOEM says it may decide to move forward with another lease sale in the future, depending on industry interest.
However, BOEM announced today that the agency received an unsolicited lease request from Hecate Energy Gulf Wind LLC (Hecate Energy) to acquire commercial wind energy lease(s) on the Outer Continental Shelf (OCS) in the Gulf of Mexico. In response, BOEM is seeking information regarding whether competitive interest exists in the areas included in Hecate Energy’s request.
The areas are located off the coast of southeast Texas and had been previously identified by BOEM as potential Wind Energy Areas (WEAs) suitable for offshore wind leasing in 2021. WEA Option C totals 74,113 acres, and WEA Option D totals 68,239 acres, for a total of 142,352 acres.
BOEM worked with NOAA’s National Centers for Coastal Ocean Science to identify 14 potential WEAs via a comprehensive ecosystem-based ocean planning model as detailed in a joint report published in 2021. The areas contained in Hecate Energy’s unsolicited lease request were identified as part of that effort and are different than the areas (WEA I-1, WEA I-2, WEA J, and WEA K) included in BOEM’s second Gulf of Mexico offshore sale notice.
As required by the OCS Lands Act, BOEM is issuing a Request for Competitive Interest (RFCI) seeking comments and specific input regarding whether there is competitive interest in commercial offshore wind energy development in the areas requested by Hecate Energy. The RFCI will be published in the Federal Register on July 29, 2024. To comment on the RFCI, go to www.regulations.gov and search for BOEM-2024-0039. BOEM may use comments received to further identify and refine the area(s) being considered for wind energy development and inform future environmental analyses related to the potential lease area.
If BOEM receives one or more indications of interest in acquiring a commercial wind lease from qualified entities, BOEM may decide to move forward with a competitive lease sale. If BOEM does not receive competing indications of interest from qualified companies, BOEM may move forward with a noncompetitive lease issuance to Hecate Energy.
“The Gulf region benefits from great offshore wind resources and existing energy infrastructure,” said Gulf of Mexico regional director Dr. James Kendall. “The interest from industry leaders such as Hecate and RWE demonstrates the commercial potential in the region. As we continue to explore these opportunities, we will ensure that any potential development is done in a way that avoids, reduces, or mitigates potential impacts to ocean users and the environment.”
Since the start of the Biden-Harris administration, the Department of the Interior has approved the nation’s first nine commercial-scale offshore wind projects, totaling more than 13 GW of clean energy. Since January 2021, the Department has held four offshore wind lease auctions – including a record-breaking sale offshore New York and the first-ever sales offshore the Pacific Coast and in the Gulf of Mexico. The Department also recently announced a schedule of up to 12 additional lease sales through 2028.
The first BOEM lease sale in the Gulf of Mexico was held in August of 2023 and one lease was awarded to RWE Offshore US Gulf LLC.
