Offshore wind development on the west coast of the US took a major step forward on 26 May 2022 when the Bureau of Ocean Energy Management (BOEM) released a Proposed Sale Notice (PSN) for five lease areas off the California coast
The PNS is the final step before setting an auction date for nearly 380,000 acres for offshore wind development, an area sufficient for at least 4.5 GW of offshore wind capacity.
Water depths in the Pacific require the use of floating turbines. All commercial-scale offshore wind development in the US to date has been fixed-bottom offshore wind, so the PNS is also an important step for the industry in the US as a whole.
The PSN covers two areas on the Outer Continental Shelf and is also the first-ever offshore wind lease sale proposed on America’s west coast. In total, it includes three proposed lease areas in the Morro Bay Wind Energy Area off central California; and two proposed lease areas in the Humboldt Wind Energy Area off northern California.
The PSN, which will published in the Federal Register 31 May 2022, opens a 60-day public comment period and provides detailed information about the proposed lease areas, proposed lease provisions and conditions, and auction details.
BOEM is seeking feedback on several lease stipulations, including a 2.5% bidding credit to bidders who have executed or commit to executing a community benefit agreement with a community or ocean users, whose use of a lease area, or whose use of resources harvested from a lease area, is directly impacted by the lessee’s potential offshore wind energy development.
It also includes a 20% bidding credit to bidders who commit to invest in programmes that will advance US offshore wind energy workforce training, supply chain development, or both and a requirement that lessees make every reasonable effort to enter into a project labour agreement covering the construction of any project proposed for the lease area. It further stipulates that lessees engage with Tribes, underserved communities, ocean users and agencies.
Prospective bidders not previously qualified for a California lease sale, are required to submit mandatory qualification materials to BOEM. Qualification materials must be postmarked no later than 1 August 2022.
Responding to the announcement, Business Network for Offshore Wind chief executive Liz Burdock said, “Floating markets are advancing quickly in Asia and Europe, creating a race to develop our own capabilities and position the US as a global leader in this cutting-edge market.
“The Business Network congratulates the Biden administration and Newsom administration in California for this historic moment, bringing offshore wind to the world’s fifth-largest economy and taking necessary steps to set up a robust supply chain of domestic businesses that will elevate America as a frontrunner to an in-demand technology.
“Advancing floating wind on the west coast unlocks floating offshore turbine technology and will start a modern-day gold rush to revolutionise California’s energy sector with offshore wind, a dependable, clean, and baseload renewable energy, in a state battling wildfires, droughts and increasing energy demands.
“It is encouraging to see BOEM continue to expand its multifactor bidding model in response to state and stakeholder input. The valuable auction credit will spark major investments in domestic ports, manufacturing facilities, and workforce development centres and encourage closer collaboration over local priorities including commercial fishing.”
National Ocean Industries Association president Erik Milito said, “Californian offshore wind boosts jobs and investment nationally, and will help open the door to floating offshore wind.” He noted BOEM has already received an unsolicited lease application for Humboldt Bay – which subsequently attracted competitive interest from 14 offshore wind developers – that was predicated on floating wind.
“Floating wind allows developers to tap wind resources in deeper waters even greater distances from the coast. Most of the world’s usable offshore wind resources, including the wind resources along the US west oast, exist at depths that will require floating wind technology. Lease sales offshore California will provide strong economic incentive for the development of floating wind technology and can help accelerate cost competitiveness.”
American Clean Power Association chief executive Heather Zichal said, “This is a once-in-a-generation opportunity for California to become a global hub for floating wind technology.
“Tapping into the abundant wind resources on the west coast is another key step toward reaching the US goal of deploying 30 GW of offshore wind by 2030 and will put the country on a path to achieve the goal of 100% carbon-free electricity by 2035.”
American Council on Renewable Energy president and chief executive Gregory Wetstone said, “We applaud this concrete step to help unleash America’s abundant offshore wind resources off the Pacific coast. Offshore wind is a critical emerging sector in the US that can drive billions of dollars in economic investment.”
