Sale of wind leases in the Mid-Atlantic brings in $93 million and strengthens US offshore wind industry

(WO) – The recent sale of wind leases in the Central Atlantic has raised nearly $93 million for two lease blocks. This sale, which includes areas off Maryland, Delaware and Virginia, demonstrates significant growth in the U.S. offshore wind sector.

National Ocean Industries Association President Erik Milito issued the following statement following the completion of the sale of the Central Atlantic wind leases:

“Offshore wind energy continues to show an extremely favorable long-term trend. The industry is growing and companies are investing in communities, jobs and the supply chain. The leases in Maryland and Delaware saw a significant increase in bids, which increased several times over ten years ago. The leases off the coast of Virginia also achieved significantly higher prices than comparable leases just a few years ago.

“The sale of wind leases in the Mid-Atlantic can maintain the momentum of American offshore wind, which has now matured significantly, creating jobs and spurring investment in many states well beyond those adjacent to new wind farms. Additional wind leases will further expand the supply chain and make the industry more competitive and routine. In the last 12 months, the first U.S. utility-scale offshore wind farm began generating energy, the first American-built offshore substation was commissioned, and the first American-built, owned and American-crewed offshore wind service vessel was christened. In addition, three supporting crew transfer vessels were delivered.

“However, Washington must do more to maintain this momentum. This will be the first year since 1958 with no federal leasing of offshore oil and gas fields. After this December, the Department of the Interior cannot enter into any more offshore wind leases until another offshore oil and gas field sale occurs. The current leasing situation cries out for a resolution by Congress to provide much-needed regulatory certainty and normalcy for both offshore oil and gas and wind leases..

“Entering new leases is critical to exploring and developing our nation’s important resources. Periods of inactivity in lease sales only increase uncertainty and create the risk of investment dollars flowing overseas. Maintaining regular lease sales ensures energy continuity, promotes economic growth and the development of new supply chains, and keeps the United States competitive in the global energy market.