Breaking News
Get 40% Off 0
🔎 See NVDA's full ProTips for an instant risks or rewards Claim 40% OFF

US to hold first offshore wind rights sale in Gulf of Mexico next month

Published Jul 20, 2023 05:06AM ET Updated Jul 20, 2023 02:55PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: U.S. President Joe Biden speaks about infrastructure jobs and job training in broadband, construction, and manufacturing following the passage of the Bipartisan Infrastructure Law, the CHIPS and Science Act and the Inflation Reduction Act duri

WASHINGTON (Reuters) -The United States on Thursday said the first offshore wind power auction in the Gulf of Mexico will take place next month, an industry milestone President Joe Biden discussed during a trip to highlight the administration's efforts to boost clean energy.

In February, the United States proposed to expand offshore wind power developments into the Gulf of Mexico, introducing the nascent clean energy industry into a major hub for oil and gas production.

Biden has made the expansion of offshore wind a cornerstone of his agenda to fight fossil-fuel driven climate change.

The Interior Department said the sale will take place on Aug. 29.

"We're going to the Gulf," Biden said in a speech in Philadelphia. You think I'm kidding? You ain't seen nothing yet."

According to a sale document, companies qualified to bid at the sale include units of European energy companies Equinor, Shell (LON:RDSa), RWE and TotalEnergies, all of which are already developing U.S. offshore wind leases. Equinor and Shell also have major oil and gas operations in the Gulf.

Newer entrants to the U.S. offshore wind industry include divisions of South Korea's Hanwha, U.S. renewable energy developer Hecate Energy, and Houston private equity firm Quantum (NASDAQ:QMCO) Capital.

The sale will include a lease area of 102,480 acres offshore Lake Charles, Louisiana, and two lease areas totaling nearly 200,000 acres offshore Galveston, Texas, the White House said. Companies will bid on the right to develop those acres.

The areas have the potential to generate about 3.7 Gigawatts and power, supplying nearly 1.3 million homes with clean energy, the Interior Department said.

The National Ocean Industries Association (NOIA), which represents both offshore wind and oil and gas companies, said there was "remarkable synergy" between the two energy industries.

"With the introduction of offshore wind in the Gulf Coast, numerous local companies will now have the opportunity to actively participate in the construction of new wind projects closer to home," NOIA President Erik Milito said in a statement.

The Biden administration has held three offshore wind lease auctions, including the largest-ever such U.S. sale last year for areas off the New York and New Jersey coasts, that attracted a record $1.5 billion in bids, and the first ever off the Pacific coast in California.

The Gulf's lower wind speeds, soft soils and hurricanes are potential challenges the industry could face that are unique to the region. The Southeast also has low power prices that could make it harder for higher-cost offshore wind generation to compete for electricity contracts.

Biden traveled to Philadelphia on Thursday to pitch the promise of a green economy to union workers, some of whom remain skeptical that the solar, wind and electric vehicle industries can deliver the same economic punch for organized labor as oil refineries and fossil fuel-fired power plants.

US to hold first offshore wind rights sale in Gulf of Mexico next month

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
David JC
ILoveQE Jul 20, 2023 6:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What's the over or under the podium donut falls asleep?
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email