The Department of the Interior held an offshore wind auction on Wednesday for two lease areas – one offshore of Delaware and Maryland and one offshore of Virginia.
According to the Bureau of Ocean Energy Management, the two areas could supply clean energy to up to 2.2 million homes.
Equinor Wind US won the Delaware and Maryland lease at $75,001,001. Dominion Energy won the Virginia lease at $17,650,500.
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The lease sale represents a significant milestone toward achieving the Biden-Harris administration’s goal of deploying 30 gigawatts of offshore wind energy capacity by 2030 and 15 gigawatts of floating offshore wind energy by 2035.
“At the start of the administration, our nation had approved zero offshore wind energy projects. Today, we have nine – enough to power nearly 5 million homes. This is what developing a clean energy transition looks like,” said Secretary of the Interior Deb Haaland. “Together, we are demonstrating that, in partnership with states, Tribes, ocean users and industry, we can build an entirely new and sustainable industry that will meet the growing demands of our nation far into the future, while creating good-paying jobs and helping mitigate the threat of the climate crisis.”
The Equinor Wind US lease area consists of 101,443 acres and is approximately 26 nautical miles from Delaware Bay.
“Equinor is pleased to have been selected as the provisional winner of the Central Atlantic offshore wind lease auction,” said Molly Morris, president of Equinor Renewables Americas. “Equinor’s interest in this auction is consistent with our approach to pursue attractive offshore wind opportunities in the United States. The Central Atlantic region has a rapidly growing demand for electricity with widespread support for adding renewable sources of energy into the power mix.”
The Dominion Energy lease area consists of 176,505 acres off the Virginia coast located adjacent to where the company’s 2.6-gigawatt Coastal Virginia Offshore Wind is currently under construction.
“Offshore wind is critical to our all-of-the-above approach to meet the unprecedented growth of our customer electric demand over the next decade,” Dominion Energu president and CEO Robert M. Blue said in a statement. “Winning this lease area gives us another low-cost option to meet that growing demand while providing our customers with reliable, affordable and increasing clean energy.”
According to analysis from the Southern Environmental Law Center, the bidding credits from today’s lease sales will result in more than $11 million in investments for workforce training and domestic supply chain, and an additional $11 million for fisheries compensatory mitigation.
“In Virginia, we are already seeing the incredible potential of offshore wind with the CVOW project that is now under construction,” said Grayson Holmes, a senior attorney in SELC’s Virginia office. “Done responsibly and in strong collaboration with communities, state regulators, and BOEM, offshore wind is one of the smartest clean energy solutions that we’re not talking about enough. Successful events like the auction today reiterate this and help propel conversations about clean energy and energy efficiency forward.”
“Offshore wind continues to show a highly favorable long-term trend,” National Ocean Industries Association President Erik Milito said. “The industry is growing, with companies investing in communities, jobs, and the supply chain. The lease area in Maryland and Delaware saw a substantial increase in bid amounts, multiplying several times over compared to a decade ago. Similarly, the lease area offshore Virginia has fetched significantly higher prices than similar leases did just a few years ago.
“The Central Atlantic wind lease sale can sustain the momentum of American offshore wind, which has matured significantly, creating jobs and driving investments across many states, extending well beyond those adjacent to new wind farms. Continued wind lease sales will further build out the supply chain, making the industry more competitive and routine.
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Chris Graham
