US BOEM seeks to award Gulf of Mexico offshore wind leases

The assessment follows a request from Hecate Energy to acquire commercial wind energy leases on the Outer Continental Shelf.

Umesh Ellichipuram July 29 2024

The US Bureau of Ocean Energy Management (BOEM) is taking steps to award new offshore wind energy leases in the Gulf of Mexico.

This follows an unsolicited lease request from Hecate Energy Gulf Wind to acquire commercial wind energy leases on the Outer Continental Shelf (OCS).

BOEM is seeking input to determine if there is competitive interest in the areas off the southeast Texas coast, spanning more than 142,000 acres, as specified in Hecate Energy's proposal.

Should other qualified entities express interest in a commercial wind lease, BOEM may initiate a competitive lease sale process.

Without additional qualified interest, BOEM may proceed with a noncompetitive lease issuance to Hecate Energy.

The areas in question were identified through a separate initiative and differ from those in BOEM's proposed sale notice (PSN) for a second Gulf of Mexico offshore wind lease sale, announced on 21 March 2024.

The Gulf's first offshore wind lease sale took place in August 2023, with RWE Offshore US Gulf the sole awardee.

Following the March 2024 PSN, BOEM received 25 comments, but only one company indicated a desire to participate.

BOEM then cancelled the proposed sale due to lack of competitive interest but remains open to holding a future lease sale if industry demand increases.

BOEM Gulf of Mexico regional director Dr James Kendall stated: “The Gulf region benefits from great offshore wind resources and existing energy infrastructure. 

“The interest from industry leaders such as Hecate and RWE demonstrates the commercial potential in the region.

“As we continue to explore these opportunities, we will ensure that any potential development is done in a way that avoids, reduces or mitigates potential impacts to ocean users and the environment.”

In March 2024, BOEM finalised the designation of a 32GW offshore Wind Energy Area (WEA) in the Gulf of Maine.

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