The Future of Offshore Wind Energy in the Gulf of Mexico
The Bureau of Ocean Energy Management (BOEM) has confirmed competitive interest in two offshore wind areas (WEAs) off the southeast Texas coast, following an unsolicited lease request from Hecate Energy Gulf Wind LLC.
The competitive determination emerged after Invenergy GOM Offshore Wind LLC expressed interest in the same areas – WEA options C and D – which span a combined 142,352 acres. WEA Option C encompasses 74,113 acres, while Option D covers 68,239 acres.
“The Gulf of Mexico remains an attractive option for offshore wind energy development,” stated Gulf of Mexico Regional Director Jim Kendall. “We are excited about the future of this emerging sector in the region.”
Hope for Offshore Wind Boom in Gulf of Mexico Fades With Low Bids
The announcement follows BOEM’s July 29, 2024 Request for Competitive Interest (RFCI) in the Federal Register. Both Hecate and Invenergy have been deemed legally, technically, and financially qualified to hold an Outer Continental Shelf renewable energy lease in the Gulf of Mexico.
This development comes against the backdrop of mixed results in the region’s offshore wind initiatives. The Gulf’s first offshore wind lease sale in August 2023 yielded modest returns, raising $5.6 million for a 100,000-acre area off Louisiana’s coast, while Texas areas received no bids. This outcome stood in stark contrast to the remarkable $4.3 billion generated from the New York and New Jersey offshore wind lease sale in February 2022.
Looking ahead, BOEM has scheduled the Gulf’s next competitive lease sale for 2026, with plans to release draft WEAs for public input in early 2025, despite growing headwinds from the next administration with President-elect Trump already planning a “day one” executive order targeting the sector.
The leasing path aligns with the Biden-Harris administration’s broader clean energy goals, which have already approved more than 15 gigawatts of clean energy from ten offshore wind projects – enough to power approximately 5.25 million homes.