Page 10: of Marine News Magazine (April 2022)

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By the

Numbers

Historic $4.4 Billion NY Bight

Offshore Wind Lease Sale

By Phil Lewis, Director Research, Intelatus Global Partners

The Bureau of Ocean Energy Management’s (BOEM) New York Bight auction concluded February 26, 2022, a sale where six bidders committed to payments of close to $4.4 billion in total for the right to develop wind lease areas off- shore New York and New Jersey.

At least four of the leases have been secured by leading European offshore wind developers: Ocean Winds with GIG,

RWE, Edf Renewables with Shell New Energies and Copenhagen Infrastructure Partners have all con? rmed bid awards.

The ownership of Attentive Energy has yet to be con? rmed but is reported to be EnBW and TotalEnergies, despite re- ports of an Ørsted involvement.

RWE is estimating that the OCS-A 0539 lease area has a potential to support around 3 GW of capacity, close to three times the BOEM estimate.

The auction re? ects the increased interest and con? dence in the opportunities provided by the U.S. offshore wind segment and also a general market interest in securing offshore wind development sites worldwide.

BOEM has rolled out additional requirements as part of the auction process. On top of offering the highest option price, a successful developer is committing to promoting local supply chains—in particular factories, ports, transmission assets and vessels. Regular measurement and reporting of the status of these commitments will be required in order to enjoy lower lease payments to BOEM, in addition to state incentives.

The ? rst leases awarded by BOEM in the New York Bight could see offshore wind production before the end of the decade.

Subscribe to Intelatus’ Monthly U.S. Of shore Wind Report here: https://usof shorewind.worldenergyreports.com/ 10 | MN April 2022