Offshore wind energy, including off the coast of Louisiana, remains an integral part of the nation’s future despite the industry’s recent struggles, senior U.S. officials said Wednesday in New Orleans while announcing plans for more projects in the Gulf of Mexico and elsewhere.
Speaking before an audience of hundreds at an industry conference, U.S. Interior Secretary Deb Haaland set out a schedule for up to 12 wind energy lease sales through 2028, including three in the Gulf of Mexico.
She also announced the finalization of updated regulations for offshore wind development aimed at streamlining construction and bringing down costs.
“Everyone in this room knows exactly what’s at stake if we don’t take decisive action now to curb a crisis that has been decades in the making — a climate crisis that grows more fearsome with each hot, record-breaking year,” Haaland said.
This week’s conference organized by the Oceantic Network industry body came at a time of severe challenges for the offshore wind sector in the United States, caused in part by high interest rates and supply chain difficulties. While acknowledging those difficulties, speakers highlighted what has already been achieved and insisted that the future of the industry remains bright and necessary.
Haaland noted that her department has so far approved offshore wind projects capable of producing around 10 gigawatts, which is enough to power almost 4 million homes. So far, two out of the eight commercial-scale projects approved are delivering energy, the White House says.
President Joe Biden’s administration has set a goal of 30 gigawatts of offshore wind energy by 2030.
The Gulf, with its relatively lower wind speeds, hurricanes and softer sea bottoms, is a newcomer to offshore wind development. A first federal Gulf auction last year was seen as somewhat of a disappointment, but it resulted in a successful bid by German company RWE for a project off the coast of southwest Louisiana. Two areas off Texas received no bids.
With its long experience in working offshore for oil and gas development, Louisiana has positioned itself to benefit from the energy transition. Former Gov. John Bel Edwards set out a welcome mat with a goal of generating 5 gigawatts of offshore wind energy by 2035. The state has signed its first two wind energy agreements for Louisiana waters.
Gov. Jeff Landry, a Republican closely aligned with the oil and gas industry who has cast doubt on the science surrounding climate change, has not spoken in detail on his plans yet. A council advising him has called for an “all of the above” energy approach.
Beyond benefiting economically, Louisiana is also on the front lines of climate change. Sea level rise linked to warming temperatures will greatly worsen the state’s ongoing land loss crisis, and a global transition away from fossil fuels will help buy time to deal with the problem.
Regional economic development organization GNO Inc. has been seeking to promote Louisiana’s expertise and potential when it comes to offshore wind energy, including at this week’s conference.
“Louisiana companies have found themselves naturally leading the national offshore wind supply chain by leveraging their historic oil and gas expertise,” Cameron Poole, program manager for the organization’s GNOwind Alliance, said in a statement. “GNOwind members will be in an ideal position to serve as the supply chain for local and national projects as developments advance in state and federal waters.”
The organization also pointed to the planned release of a new report at the conference on Thursday detailing plans for Louisiana to capitalize on the opportunities.
The auction schedule announced Wednesday is spread among locations including the central Atlantic, Gulf of Maine, Oregon, New York Bight, California and Hawaii, in addition to the Gulf of Mexico. The Gulf auctions would take place in 2024, 2025 and 2027; that schedule includes a second auction for the Gulf announced recently.
The schedule, while tentative, is in part aimed at providing the industry with some predictability to allow for planning and efficiency. Separately, the updated regulations announced Wednesday are expected to save the industry around $1.9 billion in costs over the next two decades, the Interior Department says.
The U.S. Department of Energy says offshore wind is already powering more than 100,000 homes in the country.
“I think offshore wind is going to have an incredibly important role,” David Turk, deputy energy secretary, told the conference. “It has to have an incredibly important role if we’re going to be successful in the clean energy transition — certainly in our country, but worldwide.”