(Reuters) – The first-ever auction for offshore wind energy development rights off the coast of California was on its second day on Wednesday, with soaring bids exceeding half a billion dollars.
The Biden administration’s sale is a milestone in its goal of placing turbines along every US coastline, and a crucial test of developer appetite for investment in floating wind turbines, an emerging technology needed in locations where the ocean floor is too deep for stationary equipment.
“America is becoming the destination for investment in offshore wind, whether it be conventional or a next-generation suite of technologies,” White House National Climate Adviser Ali Zaidi said in an interview, calling floating wind farms “a unique opportunity for us to position even greater leadership as this progresses.” industry globally.
Al-Zaidi noted that there is currently about 100 megawatts of floating wind power installed in the world, compared to 50 gigawatts (GW) for conventional offshore wind.
Earlier this year, the administration said it aimed to have 15 gigawatts of floating wind power installed along its coasts by 2035, enough to power about 5 million homes. This goal is in line with the government’s other goal to allow 30 gigawatts of total offshore wind by 2030 – a cornerstone of President Joe Biden’s agenda to combat climate change and create jobs.
The Department of the Interior’s Bureau of Ocean Energy Management (BOEM) is auctioning five leasehold lots equal to 373,267 acres (151,056 ha) off the state’s northern and central coasts. Previous federal offshore wind auctions have all been for charters in the shallow waters of the Atlantic Ocean.
After 27 rounds of bidding, the combined high bids totaled $582.1 million. High bids on individual leases ranged from $95.3 million to $148.8 million, according to live auction results on BOEM’s website.
The identities of the bidders were not revealed during the auction, but 43 companies have been approved to participate.
They include well-known offshore wind operators such as Avangrid Inc (AGR.N)Oersted (ORSTED.CO) and Equinor (EQNR.OL)which are all developing projects on the US East Coast, as well as potential new entrants, including Swedish floating wind developer Hexicon. (HEXI.ST) and macquarie (MQG.AX) Koryo unit.
Reporting by Nicola Groom. Editing by Alexander Smith and Aurora Ellis
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