We keep being told that companies are super excited to invest in “renewables”. So then why
First offshore wind auction in Gulf of Mexico attracts one winning bid
The Biden administration’s first-ever auction of offshore wind development rights in the Gulf of Mexico ended with a single $5.6-million winning bid on Tuesday, reflecting meager demand for the clean energy source in a region known for its oil and gas production.
Germany’s RWE won rights to 102,480 acres (41,472 hectares) off Louisiana for $5.6 million, while the other two lease areas on offer off Texas received no bids, according to results posted on the Bureau of Ocean Energy Management website.
RWE’s awarded site is 44 miles off the coast of Louisiana and has water depths of 10-25 meters. The company said that the lease area has the potential to host up to 2 GW of new capacity, enough to power over 350,000 US homes with clean energy. The project is expected to be in operation by the mid-2030s, contingent upon permitting timelines.
RWE said the Louisiana lease was attractive because the state has strong existing coastal port and supply chain infrastructure and a goal to install 5 gigawatts of offshore wind capacity by 2035. Texas does not have an offshore wind target.
And not even a U.S. based company. Few really see any reward on investment
But the overall result only represents a fraction of the billions of dollars of bids secured in an offshore wind lease sale off New York and New Jersey in February 2022, according to a Reuters analysis. Those states have passed laws that require utilities to buy power from offshore wind projects – mandates considered critical for a technology that is estimated to produce electricity at twice the cost of a natural gas plant.
Yeah, because they are forced to do it and will see some incredible government cash subsidies for it.
