In the first U.S. auction of deep-water Atlantic Ocean sites for commercial floating offshore wind energy in federal waters, the U.S. Interior Dept. said four Gulf of Maine lease areas sold for nearly $22 million to two bidders—Avangrid Renewables, which gained areas totaling 223,462 acres about 30 nautical miles off Massachusetts; and Invenergy NE Offshore Wind, which won areas totaling 215,634 acres that extend as far as 46 nautical miles from Maine.
The first U.S. floating wind auction, off the California coast in 2022, gained bids of $757 million on five parcels.
The four east coast areas with a total of 6.8 GW of projected power capacity, also generated $5.4 million of total bid credits to developers based on “binding commitments” to invest that amount in workforce training, supply chain development and fisheries' sector mitigation.
Dan Burgess, energy office director for Maine Gov. Janet Mills (D), said the sales represented a "significant milestone" for the state and the region as it develops offshore wind power to reduce dependence on expensive fossil fuels. "We look forward to following the next phases of these lease sales and building on our progress to foster this industry,” he said. While Mills barred offshore wind development in state waters to accommodate Maine's marine industries, she looks to projects in federal tracts to meet a goal to install 3 GW of offshore wind by 2040.
But Jerry Leeman, CEO of the New England Fishermen’s Stewardship Association, said the auction was “a rushed regulatory process.”
The Maine leasing, the last by the Biden Administration, did not attract as much developer action as hoped, however—with more than 14 bidders that had qualified to bid and four other lease sites set to generate 6.4 GW that were untouched. Participants and observers cite still challenging project financials and ramped up pre-election negative rhetoric related to offshore wind by Republican Donald Trump, his political allies and other opponents.
Bidders Wary?
Interior has held six offshore wind lease sales in the current administration and has several more scheduled though 2028. Natural Resources Council of Maine climate and clean energy director Jack Shapiro said the Maine auction was successful, compared to others in the Gulf of Mexico and offshore of Oregon that were cancelled earlier this year due to lack of bidders.
“The offshore market has almost 30 GW of conditional orders globally, 21 GW of which are for projects in Europe and the US, but challenging economics continue to delay conversion into firm orders," said global renewable energy research firm Wood Mackenzie.
Avangrid said the new lease areas enable it “to help progress floating wind technology,” with about two-thirds of potential U.S. offshore wind energy in waters deeper than 60 ft, the limit for fixed sea-floor turbine foundations. The Orange, Conn., developer claims an offshore wind pipeline of 5 GW in the Northeast region in addition to the Gulf of Maine projects. These include the under construction 800-MW Vineyard Wind 1 project, of which Avangrid is a 50% owner, but that now faces an unclear completion delay due to a blade collapse in July.
“Our participation demonstrates Invenergy's steadfast commitment to advancing the American offshore wind industry,” said Daniel Runyan, Invenergy senior vice president of offshore wind development in a statement. The firm was also selected to develop a 2.4-GW project off New Jersey but recently requested a delay due to a turbine supplier issue.
"Despite the general uncertainty around the upcoming presidential election, this is a vote of confidence for an American industry that has already received nearly $3 billion of new supply chain investment in the first nine months of 2024,” said Liz Burdock, CEO of U.S. offshore wind advocacy group Oceantic Network, in a statement.
Floating Wind R&D Push
According to sources, Maine floating wind project design and construction will await more results from the award in.August to the state of the first federal research lease in the Gulf of Maine—a 15.000-acre site that would generate 144 MW of power. It is set to enable “important technological, operational and scientific research,” said the Maine Offshore Wind Initiative.
“We are looking forward to collaborating with the winners of the [commercial] Gulf of Maine leases, as their process of selecting technologies will be kicking off in the future,” said Habib Dagher, executive director of the University of Maine Advanced Structures & Composites Center, which has been developing the VolturnusUS+ floating offshore wind turbine pilot project that will be part of the gulf research.
The project is advancing on schedule, he says, with Its patented concrete semi-submersible floating turbine hull "expected to be operational and connected to the grid in early 2025.” Dagher says the tcchnology "uses a damping system to reduce motions, which allows weight and size reductions of up to 30%.” Funding for construction comes from a U.S. Energy Dept. research grant.
The university also seeks to build a $456-million offshore wind port at Maine's Sears Island, with an intended 2029 completion, but it could not gain a US Transportation Dept grant to cover the cost. “It is certainly a setback, but the state has additional plans for alternative port funding,” Dagher says, adding that the commercial leases “give a boost to Maine's next funding application.”
In another hoped-for sector boost, Interior and the U.S. Defense Dept. on Oct. 29 agreed at the American Clean Power Association offshore wind conference in Atlantic City, N.J., to “further institutionalize collaboration” to insure sector construction and operation can co-exist with military activity in all U.S. ocean areas.
DOD concern over perceived interference had long delayed floating wind development off the West Coast. Action by the Biden Administration to resolve the stalemate was needed to enable the California lease auction. “We view clean energy transition, offshore wind in particular, as vital to national security,” said Brendan Owens, assistant defense secretary for energy, installations and environment.
Despite the politics, conference organizers said almost 65 GW of offshore wind capacity is under development in the U.S., with strong union support. "Everything depends on next Tuesday," Sean McGarvey, president of North America’s Building Trades Unions, told attendees.
But even with a Trump win, “we could focus on the fundamentals that make a market stronger. Projects that are permitted will move forward, and ... we’ll work on infrastructure, ports, transmission," advocate Burdock told sector publication Recharge.
"Our goal persists no matter who is in the White House," said New York State Research and Development Authority CEO Doreen Harris. Her agency is working to meet the aggressive state plan to install 9 GW of offshore wind energy by 2035.
