The US Bureau of Ocean Energy Management (BOEM) has canceled the planned lease sale of potential Wind Energy Areas (WEAs) in the Gulf of Mexico, citing a “lack of competitive interest.” This decision follows an unsolicited lease request from Hecate Energy Gulf Wind LLC (Hecate Energy) to acquire commercial wind energy leases on the Outer Continental Shelf (OCS) in the region.
BOEM is now seeking information to determine whether competitive interest exists in the areas included in Hecate Energy's request. The tracts, located off the coast of southeast Texas, had been identified by BOEM in 2021 as potential WEAs suitable for offshore wind leasing. WEA Option C covers 74,113 acres, while WEA Option D spans 68,239 acres, totaling 142,352 acres.
As required by the OCS Lands Act, BOEM is issuing a Request for Competitive Interest (RFCI) to gather comments and specific input on whether there is competitive interest in commercial offshore wind energy development in the requested areas. The RFCI will be published in the Federal Register on July 29, 2024.
To comment on the RFCI, interested parties can visit www.regulations.gov and search for BOEM-2024-0039. BOEM may use the received comments to refine the areas considered for wind energy development and inform future environmental analyses related to the potential lease area.
If BOEM receives one or more indications of interest from qualified entities, it may proceed with a competitive lease sale. If no competing interests are indicated, the agency may issue a noncompetitive lease to Hecate Energy.
BOEM collaborated with NOAA's National Centers for Coastal Ocean Science to identify 14 potential WEAs through an ecosystem-based ocean planning model, detailed in a joint report published in 2021. The areas in Hecate Energy's unsolicited lease request were identified as part of this effort and differ from the areas included in BOEM's Proposed Sale Notice (PSN) for a second Gulf of Mexico offshore wind lease sale, published on March 21, 2024.
The first lease sale in the Gulf of Mexico was held in August 2023, with one lease awarded to RWE Offshore US Gulf LLC. BOEM received 25 comments in response to the March 2024 PSN, with only one company expressing interest in participating. Consequently, the agency is canceling the sale due to a lack of competitive interest but may reconsider a lease sale in the future based on industry interest.
“The Gulf region benefits from great offshore wind resources and existing energy infrastructure,” said Gulf of Mexico regional director James Kendall. “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.”
