Despite the region's apparent advantages for offshore wind, low electricity prices—based on coal and natural gas—have dampened market conditions for offshore wind in Texas, Leyland says. But a recent summer shortage of power in the state, new and proposed environmental regulations for fossil-fuel plants and an offshore-wind-power profile that closely matches the state's demand for electricity could finally make offshore wind viable.
Says Leyland, “There is an awful lot of talking to be done” about Texas' energy planning and long-term strategies.
Power purchase agreements for the Baryonyx projects, Leyland says, are “some distance down the line,” after front-end engineering and design for the projects is complete.
Baryonyx has been working and talking with several offshore engineering and contracting firms in the Gulf Coast but has yet to formalize any arrangements, Leyland says.