The New York Bight offshore wind lease auction ended on Friday after three days of bidding on six lots off the coast of New York and New Jersey. For the total 488,201 acres, the six winning companies offered $4.37bn, making the auction America’s highest-grossing competitive offshore energy lease sale in history, including oil and gas lease sales.
Provisional winners of the sale are: Atlantic Shores Offshore Wind Bight, LLC (owned by (EDF and Shell), with a bid of $780m on 79,351 acres; Attentive Energy LLC (EnBW and Total), with a bid of $795m on 84,332 acres; Bight Wind Holdings, LLC (RWE and National Grid), with a bid of $1.1bn on 125,964 acres; Invenergy Wind Offshore LLC (owners not identified), with a bid of $645m on 83,976 acres; Mid-Atlantic Offshore Wind LLC (Copenhagen Infrastructure Partners), with a bid of $285m on 43,056 acres; and OW Ocean Winds East, LLC (EDP Renewables and ENGIE), with a bid of $765m on 71,522 acres.
Before the leases are finalized, the Department of Justice and Federal Trade Commission will conduct an anti-competitiveness review of the auction, and the provisional winners will be required to pay the winning bids and provide financial assurance to the Bureau of Ocean Energy Management (BOEM).
The New York Bight offshore wind leases include stipulations designed to promote the development of the domestic US supply chain for offshore wind energy and enhance engagement with Tribes, the commercial fishing industry, other ocean users and underserved communities. The stipulations will also advance flexibility in transmission planning. Stipulations include incentives to source major components domestically – such as blades, turbines and foundations – and to enter into project labour agreements to ensure projects are union-built.
“Because we understand the value of meaningful community engagement, we are requiring lessees to report their engagement activities to BOEM, specifically noting how they’re incorporating any feedback into their future plans,” said BOEM Director Amanda Lefton.
These additions were intended to promote offshore wind energy development in a way that coexists with other ocean uses and protects the ocean environment, while also securing America’s energy future for generations to come.