December 14, 2018 Read More →

Bidding war emerges over rights to offshore U.S. wind

Bloomberg News:

Companies competed Thursday for the opportunity to install wind turbines in Atlantic waters off Massachusetts in an auction that shattered records even as it headed toward a second day of frenzied bidding.

After 24 rounds of sealed bidding, companies had already pledged $285 million toward the three offshore wind leases that are up for grabs — more than six times the previous high-water mark: Norwegian energy company Equinor ASA’s $42.47 million bid in 2016 for the rights to build an offshore wind farm near New York.

High bids in the offshore wind auction, set to resume Friday, also already eclipsed the $178 million the U.S. government collected in its August sale of offshore drilling rights in the Gulf of Mexico.

By Thursday evening, when Interior Department officials called an overnight halt to the auction, four companies were still vying for the territory, drawn by growing demand for renewable power in the Northeast U.S. and a chance at gaining a foothold in the nation’s growing offshore wind market.

“The unprecedented interest in today’s sale demonstrates that not only has offshore wind arrived in the U.S., but it is set to soar,” said Randall Luthi, head of the National Ocean Industries Association.

More: Offshore Wind Bonanza Draws Bidding War in Record-Setting Sale

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