California offshore wind auction garners $402M in bids on first day

Dive Transient:

• The Bureau of Ocean Power Administration’s first-ever public sale for wind power leases off California’s coast garnered $402.1 million in bids on the finish of its first day.
• BOEM on Tuesday put up for public sale 5 leases that might help as much as 4.6 GW of floating generators greater than 20 miles off California’s northern and central coasts.
• The California public sale is just not anticipated to generate as a lot income because the one off New York and New Jersey final February, which yielded $4.4 billion. “Right now, the California market is just not as sturdy, and including in new know-how growth will doubtless end in a lower cost,” the Enterprise Community for Offshore Wind stated in a Tuesday assertion.

Dive Perception:

BOEM placed on the public sale block 5 leases masking 373,300 acres for floating generators within the deep Continental Shelf miles off California’s Morro Bay and Humboldt Bay. 

“Offshore wind is a important element to reaching our world-leading clear power objectives and this sale is an historic step on California’s march towards a future freed from fossil fuels,” Gov. Gavin Newsom, D, stated in an announcement Tuesday.

Being auctioned are three leases for 3 GW of wind power off California’s Central Coast and two leases for 1.6 GW off the Northern California Coast. Minimal bids had been set at $100 per acre.

“After a few years of planning, that is an thrilling milestone within the course of,” stated Matthew Marshall, govt director of the Redwood Coast Power Authority, or RCEA. He has been engaged on offshore wind growth in Humboldt Bay for a number of years.

The public sale will proceed so long as there may be energetic bidding, BOEM spokesperson John Romero stated Tuesday morning. Outcomes could possibly be launched as early as Dec. 7.

The leases for floating generators off the Golden State’s coast “will instantly put the U.S. on the forefront of a quickly advancing new trade with the chance to emerge as a real international chief,” stated Melinda Skea, spokesperson for the Community for Offshore Wind. 

California’s ocean is way deeper than most different areas with developed and rising offshore wind industries, requiring massive floating wind generators moored to the seafloor rather than fastened platforms or towers. Floating generators, that are costlier, work in water depths between 1,300 ft to 4,300 ft, in response to BOEM.

Floating wind turbine builders outdoors the U.S. are anticipated to take part within the West Coast market, together with Corio, SSE, BW Idol, Aker, Mainstream, and Hexicon, stated the Enterprise Community for Offshore Wind.

Bids flood in

As of late Tuesday afternoon, BOEM reported there have been practically 40 bids for the three leases past Morro Bay on the central coast and greater than 30 for generators for 2 leases outdoors Humboldt Bay. RCEA’s Marshall stated there have been six bidders.

The California public sale is just not anticipated to be as sturdy because the East Coast one, however that can change over time resulting from its prime market and “sturdy political and public help,” in response to Skea.

The California public sale is BOEM’s third of seven deliberate auctions earlier than 2025. It’s a part of the Biden administration’s plan introduced in Might to convey on-line greater than 30 GW of offshore wind power on the East and West coasts by the beginning of the subsequent decade, with half from floating generators by 2035. Biden seeks to allow 100% clear electrical energy by 2035 and a net-zero-emissions economic system by 2050.

The identical day as the beginning of the public sale, the U.S. Division of Power launched a $28 million funding alternative to decrease prices and boundaries to offshore and land-based distributed wind power deployment. Practically $17 million is for applied sciences wanted to transmit massive quantities of electrical energy from offshore wind farms and analysis and neighborhood engagement