One year after a lukewarm reception to its first Gulf of Mexico wind energy lease sale, the Bureau of Offshore Wind Energy said Dec. 12 it was declaring there’s competitive interest in two areas off southeast Texas.
Hecate Energy Gulf Wind LLC, a division of Chicago-based Hecate Energy, a developer of renewable energy and battery storage projects, submitted an unsolicited application on Feb. 16, 2024 for two areas on the outer continental shelf, of 74,113 acres and 68,239 acres, some total 142,352 acres in all.
After Hecate’s application, BOEM on July 29 published a “request for competitive interest” to see if any other would-be developers might want to bid on future leases. One respondent was Invenergy GOM Offshore Wind LLC, a division of another Chicago power company Invenergy LLC, founded in 2001 for investing in natural gas generation and now in renewable energy, batteries and transmission.
On Tuesday BOEM said its determined “both Hecate and Invenergy to be legally, technically, and financially qualified to hold an OCS renewable energy lease in the Gulf of Mexico. As a result of this review, BOEM has determined that competitive interest exists in the RFCI areas.”
“The Gulf of Mexico remains an attractive option for offshore wind energy development,” said Gulf of Mexico Regional Director Jim Kendall. “We are excited about the future of this emerging sector in the region.”
Hecate Energy’s proposed Gulf Wind Offshore Wind Project 2 would generate up to 2 gigawatts nameplate capacity, using up to 133 wind turbine generators, each rated between 15-23 megawatts, according to BOEM.
In the U.S. Northeast and Mid-Atlantic waters, offshore wind developers have been attracted by the region’s consistent wind speeds and proximity to power-hungry urban regions. In the Gulf of Mexico, with lower wind speeds and longer transmission distances to cities, industry advocates predict wind technology’s best utility will be powering the region’s petrochemical and future hydrogen fuel manufacturers.
BOEM’s first Gulf auction in late August 2023 seemed to affirm those outlooks. Back then only RWE Offshore US Gulf LLC stuck through the process, paying $5.6 million for 102,480 acres south of Lake Charles, La., while lease offerings east of Galveston, Texas, had no bids.
