Central Atlantic wind lease sale raises $93 million, boosts U.S. offshore wind industry

(WO) – The recent Central Atlantic wind lease sale has generated nearly $93 million for two lease blocks. This sale, covering 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 after the conclusion of the Central Atlantic wind lease sale: 

"Offshore wind continues to show a highly favorable long-term trend. The industry is growing, with companies investing in communities, jobs, and the supply chain. The lease area in Maryland and Delaware saw a substantial increase in bid amounts, multiplying several times over compared to a decade ago. Similarly, the lease area offshore Virginia has fetched significantly higher prices than similar leases did just a few years ago.

"The Central Atlantic wind lease sale can sustain the momentum of American offshore wind, which has matured significantly, creating jobs and driving investments across many states, extending well beyond those adjacent to new wind farms. Continued wind lease sales will further build out the supply chain, making the industry more competitive and routine. Over the past 12 months, the first utility-scale U.S. offshore wind farm began producing energy, the first American-built offshore wind substation was launched, and the first American-built, owned, and crewed offshore wind service operations vessel was christened. Additionally, three supporting crew transfer vessels were delivered.

"However, Washington needs to do more to maintain this momentum. This will be the first year without a federal offshore oil and gas lease sale since 1958. After this December, the Interior cannot hold any more offshore wind lease sales until another offshore oil and gas sale is held. The current leasing reality is begging for a Congressional fix to provide much-needed regulatory certainty and normalcy for both offshore oil and gas and wind lease sales.

"Securing new leases is vital for exploring and developing resources crucial to our nation. Periods of inactivity in lease sales only serve to heighten uncertainty and risk pushing investment dollars overseas. Sustaining regular lease sales ensures energy continuity, fosters economic growth and the development of new supply chains, and keeps the United States competitive in the global energy market.