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Norwegian energy major Equinor and US-based Dominion Energy have won two separate US offshore wind leases in the Central Atlantic auction after bidding around $93m in total. This is the fifth offshore wind lease sale held during the current administration, and the auction for leases off the states of Delaware, Maryland, and Virginia was the region’s first in a decade. The US offshore wind arm of the Norwegian firm, Equinor Wind, won a 410 sq km lease and paid $75m for it. The lease is located some 48 km from Delaware Bay. The around 2GW lease will have the capacity to produce enough energy to power approximately 900,000 US homes. Dominion Energy won a 714 sq km lease for a little over $17.65m. It is located some 65 km from the entrance of Chesapeake Bay. The area could support between 2.1GW and 4GW of offshore wind energy generation. Six companies participated in the auction and the two provisional winners paid $92.65m in winning bids. The sale resulted in over $23m in total bidding credits. These bidding credits will result in over $11m in investments for workforce training and domestic supply chain, and an additional $11m for fisheries compensatory mitigation. If the two companies wish to proceed with the construction and operation of offshore wind facilities, they must submit a project plan for review. An environmental impact statement will be made to analyse the specific impacts of any project proposals before construction approval. “This is a long-term option with first power post 2035. We will take a disciplined approach to minimize risk and mature a robust project in our portfolio,” said Pål Eitrheim, executive vice president of Equinor Renewables. “Equinor’s interest in this auction is consistent with our approach to pursue attractive offshore wind opportunities in the United States. The Central Atlantic region has a rapidly growing demand for electricity with widespread support for adding renewable sources of energy into the power mix,” added Molly Morris, president of Equinor Renewables Americas. |
