A lease sale for 488,000 acres of offshore wind areas off the coast of New York and New Jersey concluded Feb. 25 with competitive winning bids by six companies totaling approximately $4.37 billion.
The U.S. Department of the Interior said the results represent the nation's highest-grossing competitive offshore energy lease sale in history, including oil and gas lease sales. The auction, run by the U.S. Bureau of Ocean Energy Management, began Feb. 23 with some experts predicting total final bids could approach $1.5 billion. That total was exceeded on the first day.
The winning bidders include some participants new to the U.S. offshore wind sector.
Bight Wind Holdings LLC, backed by National Grid Ventures Limited and RWE Renewables GmbH, won the largest lease area, bidding $1.1 billion for a 125,964-acre parcel.
Attentive Energy LLC, backed by EnBW North America and TotalEnergies Renewables USA LLC, won an 84,332-acre parcel for $795 million.
Atlantic Shores Offshore Wind Bight LLC, backed by EDF Group affiliate EDF Renewables North America and Shell PLC subsidiary Shell New Energies US LLC, won a 79,351-acre lease area for $780 million.
OW Ocean Winds East LLC, backed by EDP - Energias de Portugal SA subsidiary EDP Renewables North America LLC and Engie SA, won a 71,522-acre lease area with a bid of $765 million.
Invenergy Offshore Wind Offshore LLC, backed by U.S. independent power producer Invenergy LLC, won an 83,976-acre lease area with a bid of $645 million.
Mid-Atlantic Offshore Wind LLC, backed by Copenhagen Infrastructure Partners K/S, won the bidding at $285 million on a 43,056-acre lease area.
The Biden administration, which has set a goal to develop 30 GW of offshore wind energy in the U.S. by 2030, touted the auction's results.
"Today's historic sale is part of the president's broader, comprehensive strategy to bring together his National Climate Task Force, industry and union leaders, and communities on the coasts and deep in our heartland and get us all moving us in the same direction," Ali Zaidi, deputy national climate adviser, said in a statement on behalf of the White House.
The American Clean Power Association, the trade group representing the renewable power industry, said the results affirm the "massive economic development potential" of the U.S. offshore wind sector.
"We support BOEM's path forward to conduct six more lease sales through 2024, and we challenge policymakers to provide even more certainty to this new industry, ensuring that the American people benefit from its growth and job-creating potential," association CEO Heather Zichal said in a news release. "For too long the U.S. has lagged behind other countries in offshore wind development."
Avangrid Renewables LLC, a subsidiary of Avangrid Inc., was among the bidders but said prices went too high.
"With our existing 4.9 [GW] portfolio of offshore wind projects, Avangrid Renewables entered the auction in a unique position as an already-established market leader, and made the determination that the bid prices of the lease areas did not correspond with the strategic goals of our renewables portfolio," Bill White, president and CEO of Avangrid Renewables Offshore, said in a statement released after the auction concluded.
