Developer secures lease to build New England floating wind farm

Developer secures lease to build New England floating wind farm

2024-10-29 22:57:59 :

(Bloomberg) — Avangrid Inc. and Invenergy LLC subsidiaries secured leases to install wind turbines on about 439,000 acres in the Gulf of Maine on Tuesday, a week before a presidential election that could determine the next few years. development status.

The two companies have jointly committed $22 million to bid on four of eight lease sites around Massachusetts. With 14 companies initially qualified to participate, the small showcase, with a relatively small average bid ($50 an acre), comes amid growing concerns about the political risks looming over the U.S. offshore wind industry. Analysts said the sales results may also reflect the technological prowess needed in the deepwater Gulf of Maine and relatively untested floating wind technology.

“Pervasive macroeconomic pressures, the rise of floating wind turbines and a possible Trump administration are likely to dampen interest from potential project developers,” ClearView Energy Partners LLC said in a research note to clients.

Republican presidential candidate Donald Trump, a longtime critic of wind turbines, has stepped up his attacks on the campaign trail, even threatening to take action against the industry “on Day One” if he wins a second term in the White House. . Democratic candidate Kamala Harris has yet to outline a detailed energy policy plan but is expected to continue on the trajectory set by President Joe Biden, who oversees the administration’s approval of 10 commercial-scale offshore wind projects.

Avangrid Renewables LLC committed $11.2 million to two leases located approximately 29.5 nautical miles off Massachusetts. Meanwhile, Invenergy NE Offshore Wind offered $10.8 million for two other leases about 21.6 nautical miles off the state.

Developing any U.S. offshore wind project is a multi-year process involving federal environmental assessments, coordination with local officials and a series of government permits. Projects in the deeper waters of the Gulf of Maine may require additional government scrutiny of floating wind technology that has not yet been commercialized in the United States.

Hillary Bright, executive director of Turn Forward Group, which advocates the development, said the sale was a “pivotal moment for floating offshore wind”. “With these new leases, developers can continue to advance transformative offshore wind projects in New England.”

More stories like this can be found at Bloomberg.com

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