While President-elect Trump touts a revitalization of the oil and gas industry with an emphasis on drilling, the renewable sector continues to levy its own contribution to the global demand for energy production. As the renewables outlook promises robust activity for 2025, offshore wind appears to be showing increased signs of life with the Bureau of Ocean Energy Management (BOEM) holding an offshore wind lease sale in 2026.
The last lease held by the agency was in August 2023 where RWE Offshore US Gulf LLC won the Lake Charles Lease Area with a $5.6 million bid. With a 1.24 GW potential compliments of that lease, BOEM issued a proposal to initiate a second Gulf of Mexico wind lease, but it was short lived. The agency cancelled the sale because of a “lack of competitive interest” with only one company meeting qualification standards required to place a bid.
That was then and this is now as it appears BOEM has pinpointed viable interest inspiring a second lease sale. Hecate Energy Gulf Wind LLC of Chicago publicized interest in wind energy areas of the Matagorda coast. As a result, BOEM issued a competitive interest request with Invenergy GOM Offshore Wind LLC, another Chicago-based firm, responding. In return, BOEM moved forward with both Chicago firms meeting the financial requirements.
The oil and gas industry has long been a staple of Louisiana’s revenue framework, and the industry transitions to embrace alternative energy potential, the state could see benefit from the lease sale. Officials at Hecate indicate the company’s wind project “would be in alignment with Louisiana’s energy and climate plans.” Additionally, the Hecate plan would meet a climate goal set by former Governor John Bel Edwards to gain five gigawatts of offshore wind sourced energy by 2035.
“Hecate Energy has a long history of developing energy in the Gulf Region and sees the long-term potential for offshore wind in the Gulf of Mexico,” said Amy Krebs of Hecate. “The company is aware of the immediate challenges within this region but also appreciates the need for renewable energy to meet energy demands and establish resilience in the coming years.”
“The Gulf of Mexico remains an attractive option for offshore wind energy development,” said Jim Kendall, BOEM Gulf of Mexico regional director, in a statement. “We are excited about the future of this emerging sector in the region.”
Now that adequate and viable interest has been generated, BOEM will publish a report early next year on the wind areas to be included in the next auction. This comes to fruition as the Biden administration set a goal to gain 30 gigawatts of offshore wind power by 2030. Although the Gulf of Mexico’s offshore wind industry refrains from spanning a huge acreage count and is fairly new, a generous grouping of Texas-based companies realize the potential opportunity.
HSW Steel USA of Houston released a $110 million investment to upgrade its Baytown manufacturing operations with intentions to produce monopile steel plates, a critical component in the development of domestic offshore wind farms. BP, with its U.S. headquarters in Houston, recently joined Jera Co. Inc. in a joint venture offshore wind business. Although interest is increasing, the U.S. offshore wind industry still needs to mature and develop its supply chain. With a potential to meet clean energy goals and high profit potential, more companies are expected to generate interest and boost needed development in return.
Nick Vaccaro is a freelance writer and photographer. In addition to providing technical writing services, he is an HSE consultant in the oil and gas industry with twelve years of experience. Vaccaro also contributes to SHALE Oil and Gas Business Magazine, American Oil and Gas Investor, Oil and Gas Investor, Energies Magazine and Louisiana Sportsman Magazine. He has a BA in photojournalism from Loyola University and resides in the New Orleans area. Vaccaro can be reached at 985-966-0957 or nav@vaccarogroupllc.com.
- Nick Vaccarohttps://energiesmedia.com/author/nick-vaccaro/
- Nick Vaccarohttps://energiesmedia.com/author/nick-vaccaro/
- Nick Vaccarohttps://energiesmedia.com/author/nick-vaccaro/
- Nick Vaccarohttps://energiesmedia.com/author/nick-vaccaro/
- Nick Vaccarohttps://energiesmedia.com/author/nick-vaccaro/
- Nick Vaccarohttps://energiesmedia.com/author/nick-vaccaro/
