First Gulf of Mexico wind energy lease auction nets modest $5.6 million bid
Fox News
In a pioneering move for the Gulf of Mexico, a company has placed a $5.6 million bid to lease federal waters off the coast of Louisiana for wind energy generation.
The Biden administration said the tract covers more than 102,000 acres with the potential for generation of 1.24 gigawatts, enough wind power to supply 435,000 homes.
Analysts cited a variety of factors behind the current, relatively low interest in the lease sale, including inflation and challenges specific to the area such as lower wind speeds and the need for designs that consider hurricane threats.
Washington-based research group Clearview Energy Partners said in a Tuesday analysis that Gulf states' governments lack the needed offshore wind targets or mandates for renewable energy that could encourage more wind development.