Carolina Long Bay lease sale demonstrates momentum of U.S. offshore wind sector
May 11 2022
- Lease sale generated a grand total of $315 million for the U.S. Treasury
- Tens of thousands of jobs to be created during development of leases and projects
- Once developed, 1.3 gigawatts of clean power, enough energy for 500,000 homes
WASHINGTON DC, May 11, 2022 – The American Clean Power Association (ACP) applauded the Department of Interior and the Bureau of Ocean Energy Management (BOEM) for holding a lease sale in the Carolina Long Bay wind energy area that will create tens of thousands of high-skilled U.S. jobs, strengthen coastal economies, and deliver vast amounts of reliable, clean energy to America’s largest population centers.
The offshore wind energy lease sale conducted by BOEM generated $315 million in revenue that will go to the U.S. Treasury. The two lease areas that were bid upon include 110,091 acres offshore North Carolina and South Carolina in the Wilmington East Wind Energy Area. Once fully developed, these leases could generate at least 1.3 gigawatts of offshore wind energy, enough to power nearly 500,000 homes with carbon-free, domestically produced electricity.
The lease sale is a critical step to meeting the U.S. goal of deploying 30 gigawatts (GW) of offshore wind energy by 2030, which could create up to 83,000 jobs and $25 billion in annual economic output. The U.S. offshore wind industry is investing billions of dollars in a domestic supply chain, including investments in fabrication facilities, port upgrades, vessels, and workforce training.
“This lease sale shows the strong demand for clean energy, and it should also be a sign to Congress to repeal the 10-year moratorium on offshore wind leasing off the coasts of North Carolina, South Carolina, Georgia, and Florida,” said Heather Zichal, ACP’s CEO. “Creating a stable policy platform for offshore wind development and facilitating the first wave of significant projects will provide certainty for the industry, strengthen the workforce, and bolster domestic supply chains up and down the coasts and across the country.”
Development of these offshore wind leases will bring jobs and investment to the region. The existing Atlantic offshore wind projects under development draw on a supply and vendor chain stretching into Western North Carolina, the Gulf Coast and Midwest.
BOEM’s lease sale was the result of extensive environmental reviews and significant engagement with a diverse group of stakeholders, dating from 2012, and included states, maritime industries, commercial fisheries, non-governmental organizations, and multiple opportunities for public comment.
The commercial lease gives the awardee the exclusive right to propose a project in the area and obtain federal review of its proposal. BOEM aims to permit 25 GW of offshore wind by 2025 to ensure the country’s goal of deploying 30 GW of offshore wind by 2030.
BOEM has previously held 9 competitive lease sales for commercial wind energy leases off the Atlantic Coast and has laid out a plan to ensure the U.S. can grow the offshore wind sector.
BOEM’s offshore wind leasing roadmap anticipates conducting five additional lease sales in areas of the Outer Continental Shelf for the development of these projects offshore including, Northern and Central California, the Central Atlantic, Oregon, and the Gulf of Maine.